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Government Reshuffle: Karina Milei Strips Lugones of Control Over ARSAT and ENACOM

15/07/2026 09:04 - Politica

A Strategic Move in the Casa Rosada

In a significant political shift, General Secretary of the Presidency Karina Milei and star advisor Santiago Caputo decided to distance themselves from Rodrigo Lugones. This decision led to a major reorganization of key state areas on July 14, 2026.

Understanding the Local Context

For our international readers, it is essential to understand the local institutions involved. ARSAT (Empresa Argentina de Soluciones Satelitales) is the state-owned company responsible for satellite internet connectivity and telecommunications across the vast Argentine territory. ENACOM (Ente Nacional de Comunicaciones) is the regulatory body that oversees media, telecommunications, and broadcasting licenses. Losing control of these entities represents a massive shift in political power.

Lugones' Fall and the ARSAT Scandal

Reports indicate that Karina Milei withdrew control of ARSAT and ENACOM from Rodrigo Lugones, son of Health Minister Mario Lugones. This displacement occurs in a highly complex context. ARSAT is currently embroiled in a massive judicial scandal involving its former head, Facundo Leal. Leal was formally questioned by prosecutors after authorities found 2.4 million US dollars in cash hidden in his properties, which he could not legally justify.

Lugones had already lost the backing of his former partner at the consulting firm Move, Santiago Caputo. Beyond the Leal corruption case, Lugones' sphere of influence suffered another explosive resignation recently with the departure of Guido Giana from the Health Vice-Ministry, also linked to the Move group.

Diego Santilli Consolidates Power

With Lugones sidelined, the newly appointed Cabinet Chief, Diego Santilli, consolidated his political power by taking control of these strategic areas. According to Infobae, Santilli signed alongside President Javier Milei decrees 571/2026, 574/2026, 575/2026, and 586/2026 to reorganize the government's communication structure following the exit of presidential spokesperson Manuel Adorni.

Two new presidential secretariats were created: the Presidential Spokesperson Office and the Communication and Media Secretariat. Pamela Morales Jourdan and Alexia Sagemuller were appointed to lead these new offices. Additionally, two Cabinet Vice-Chief positions were established: Ignacio Devitt for strategic projects and Gustavo Coria for the Interior, both trusted allies of Karina Milei.

This reorganization aims for greater efficiency and coordination between government areas, replicating the scheme previously applied by Guillermo Francos. It highlights the internal power dynamics within the ruling party ahead of upcoming legislative and electoral challenges.

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Alfredo S. Quiroga