Argentina's ex-President Carlos Menem was placed under house arrest today by a court investigating illegal arms sales to Croatia and Ecuador during his government in the early 1990's.
"Unfortunately I can confirm it. Menem is under arrest," said a spokesman for Mr Menem's brother Eduardo, a senator. Under Argentine law, due to his age the 70-year-old Peronist Party leader will be held pending trial at a private residence.
Court sources confirmed the news, which followed feverish speculation Mr Menem would be arrested after his ex-army chief Mr Martin Balza yesterday became the third influential figure of his 1989-99 period in power to be held in the arms case.
Mr Menem, one of Latin America's most charismatic politicians of the 1990s, had told a mob of reporters when he arrived at the Buenos Aires courthouse a few hours earlier: "I don't know if I shall remain free."
In two terms in office Mr Menem tamed the mutinous armed forces, modernized the economy, privatized state firms and made Argentina a firm US ally. But his entourage was plagued with major corruption scandals, unemployment soared and poverty grew to affect a third of the population of 36 million people.
Now Mr Menem, who has just married a Chilean former beauty queen and who had planned on seeking a third term in 2003, could face 5-10 years in jail if found guilty of heading an illicit association to sell arms.
More than 100 supporters of Mr Menem set off fireworks outside the courthouse and chanted "Loyalty to Menem" and "Menem, the people are with you!"
Many other Argentines were celebrating the news. In a poll this week 64 per cent of respondents believed Mr Menem was guilty, but only a fifth expected him to be convicted.