BUENOS AIRES, Argentina, Oct 6, 2025 (BSS/AFP) - A member of Argentine President Javier Milei's party withdrew his candidacy on Sunday from legislative elections, after acknowledging he received payments from a man under investigation for drug trafficking.

The scandal surrounding Jose Luis Espert comes at a time of intense pressure for the government, which last week saw Congress overturn two of Milei's vetoes.

Populist Milei's government is facing accusations of corruption while managing a volatile economic situation, after being hit by a major local election setback earlier this month.

"I cannot allow the project for the country that we have undertaken with so much effort to fall apart," said Espert on social media when withdrawing his candidacy.

He remains a member of Congress and has denied allegations of wrongdoing against him.

Espert, 63, was accused last week of having received $200,000 in 2020 from Federico "Fred" Machado, who is under house arrest in Argentina and wanted by the US justice system for alleged links to drug trafficking.

He said he had received the money as payment for consulting work for a mining company in Guatemala owned by Machado, a 57-year-old Argentine.

He also acknowledged that, as part of his 2019 presidential campaign, he had made around 35 trips on Machado's planes, but claimed he was unaware of the businessman's alleged links to drug trafficking.

Milei denounced what he called a "sinister operation" by the opposition against his political ally.

The ruling party, La Libertad Avanza, is in the minority in both chambers.

The government hopes to win more seats in the October 26 legislative elections, although it has little prospect of achieving a majority of its own.