Menem indicted over arms dealing

The former president of Argentina, Carlos Menem, and three senior members of his 1989-99 administration were indicted yesterday as part of an investigation into illegal arms sales to Croatia and Ecuador.

In a 600-page indictment, Jorge Urso, a federal judge, said there was sufficient proof that the former president had operated as part of an "illicit association" that sought to profit from the sales. If convicted, Mr Menem, who has been under house arrest since 7 June, could be sentenced to between five and 10 years in jail. He has repeatedly declared his innocence, calling the sales "absolutely legal".

Officially destined for Panama and Venezuela, about 6,500 tons of weapons ended up in Croatia and Ecuador between 1991 and 1995. At the time, Argentina was bound by international arms embargoes on both countries. Ecuador waged a brief border war with Peru in 1995 and the embargo against Croatia stemmed from fighting in the former Yugoslavia.

Judge Urso accused Mr Menem, 71, of falsifying decrees that he and other high-ranking officials signed to authorise the arms shipments.

Lawyers promised yesterday to take the case to the Supreme Court if necessary to clear Mr Menem's name. His brother, Senator Eduardo Menem, claimed there were "political interests" behind the ruling.

The judge also indicted Antonio Erman Gonzalez, a former defence minister; Martin Balza, a former army chief of staff; and the former foreign minister Guido di Tella for alleged involvement in the ring.

Menem oversaw the transformation of an economy rocked by hyperinflation into one of the world's leading emerging markets.