Sarandí Tobacco Company Denounces Coercive Practices by Massalin

As part of a growing dispute in the Argentine tobacco industry, Tabacalera Sarandí SA has launched a formal accusation against the multinational giant Philip Morris, as well as against the influential media groups Clarín and La Nación. According to a statement issued by Pablo Otero, president of Tabacalera Sarandí, a criminal complaint has been filed in the National Criminal and Correctional Federal Court No. 5, alleging a “systematic coordination to sabotage the operations of Tabacalera Sarandí and eliminate competition in favor of multinationals.”

The complaint, identified with the case number CFP 1901/2024, alleges that Philip Morris International, through its local subsidiary Massalin Particulares SA, has undertaken criminal actions that include the fabrication of legal cases, pressure on legislators and media manipulation, working in conjunction with the La Nación and Clarín groups. These actions have the explicit purpose of coercing the Federal Administration of Public Revenues (AFIP) to act against the interests of Tabacalera Sarandí, unfairly limiting its access to tax stamps and violating tax confidentiality by disclosing financial details to journalists.

The statement details that these maneuvers have seriously affected the normal operation of the company, mentioning specific incidents where the AFIP has shared confidential information with journalist Hugo Alconada Mon and the Diario Clarín, who allegedly used this data to publish biased articles against Tabacalera Sarandí.

“These events are not just attacks against Tabacalera Sarandí but against the entire national tobacco sector and represent a threat to free competition in our market,” said Pablo Otero. The complaint has been expanded to include AFIP staff, alleging the existence of an illicit association between Massalin Particulares, the aforementioned media outlets and officials of the fiscal agency.

In response to these attacks, Tabacalera Sarandí has ​​also requested the intervention of the President of the Nation, asking for the creation of a dialogue table that includes all SMEs in the tobacco sector to discuss solutions to the problems caused by the actions of the multinationals Philip Morris and British American Tobacco between 2015 and 2024.

This case highlights the tensions in the Argentine tobacco industry, where the strategies of large multinationals often clash with the interests of national producers, putting at stake not only economic issues but also principles of equity and corporate justice.

Sarandí Tobacco Company Takes Legal Action Against Civic Coalition Deputies

The controversy has escalated to Congress during the debate on the Ley Bases, with accusations: Massalin accuses Sarandí of evading taxes, while Sarandí argues that it is being excluded from the market. Otero’s presentation to the national government requests the intervention of Minister Luis Caputo, following a recent ruling by the Supreme Court that dismissed a 2021 injunction that exempted Sarandí from paying internal taxes during a dispute with AFIP.

According to Otero, media pressure on the AFIP initially prevented his company from receiving the appropriate amount of tax stamps, affecting the normal operation of Tabacalera Sarandí. Otero details a “coordinated systematic plan of harassment, judicial pressure and media manipulation” by Massalin and his media collaborators, with the aim of forcing the AFIP to collect alleged tax debts amounting to one billion dollars.

Otero argues that these maneuvers seek to eliminate competition, affecting not only his company but the entire national tobacco industry. He also reveals that, according to sources in the sector, the AFIP could be planning new illegal maneuvers to influence the tobacco market, something that, if confirmed, would constitute serious crimes such as failure to fulfill the duties of a public official and abuse of authority.

In light of this situation, Otero has requested the immediate intervention of the Ministry of Economy to stop any action that seeks the “annihilation of the national tobacco industry.” He has also requested an urgent roundtable discussion that includes all SMEs in the sector to find solutions to the damage caused by the actions of multinationals.

Otero’s critics say his company benefited from evading the minimum tax on cigarettes, cornering a large part of the market with products that were half the price of the competition. Meanwhile, Salta Governor Gustavo Sáenz has denounced the multimillion-dollar damage to state coffers caused by Sarandí’s maneuvers, particularly because the tax in question benefits the National Tobacco Fund and is shared with the provinces.

The legal landscape remains complex and far from resolved, with Tabacalera Sarandí facing an uncertain future in a highly competitive and regulated market.

In turn, the company had filed a complaint against two deputies from the Civic Coalition.

The conflict was sparked when deputies Juan Manuel López and Marcela Campagnoli, well-known figures of the CC, launched public accusations against Pablo Otero, president of Tabacalera Sarandí. The legislators alleged that Otero was involved in corrupt practices and in the manipulation of influences within the Federal Administration of Public Revenues (AFIP) to benefit his company, accusations that not only brought to light alleged bad practices but also provoked a media and political storm.

Tabacalera Sarandí’s reaction was swift and firm. The company accused López and Campagnoli of leading a “campaign of harassment and discredit” against Otero and the company. According to the court documents filed by the company, it is suggested that the deputies’ actions could be motivated by hidden interests and coordinated with direct competitors, including large tobacco multinationals.

Sarandí’s legal action includes serious accusations such as defamation and moral damages, requesting a meticulous judicial process to clarify the facts and restore the reputation of its president and its operations.

In the political arena, the case has caused divisions, with some voices within the Civic Coalition itself calling for caution and others strongly supporting the deputies involved. This case has highlighted the complex interaction between politics and business in Argentina, an issue that has been the subject of intense debate and criticism in various sectors of society.