Argentine judges face corruption probe

People wait in vain for banks to open

A congressional committee in Argentina has opened an investigation into nine Supreme Court judges for alleged malpractice.

The judges are facing dismissal over a series of controversial rulings, including last Friday's decision to lift a government ban on cash withdrawals from bank accounts.

Duhalde: Emergency plan suspended

The inquiry is also expected to focus on another ruling releasing from jail the former president, Carlos Menem, who was charged with involvement in an arms scandal.

It is unclear how long the process will last, but the judges could be suspended within days.

Correspondents say the inquiry is an attempt to restore the image of an institution regarded by many Argentines as corrupt and lacking independence.

'Discredited'

The Supreme Court ruled on Friday that banking restrictions limiting people's withdrawals to $800 a month amounted to unconstitutional constraints on the right to private property.

The banking restrictions prompted angry protests

The restrictions were imposed two months ago to prevent a run on savings, which would bring down the entire banking system.

The court ruling came as the government was putting the finishing touches on its emergency plan to rescue the economy from debts of $141bn, which was supposed to be announced on Saturday.

Instead, President Eduardo Duhalde - the country's fifth leader since December - announced the suspension of his plan and said banks would stay closed on Monday and Tuesday to prevent a run on savings.

He warned that millions of Argentines could lose their savings, prompting angry street demonstrations by people beating pots and pans - a sound that has become the symbol of middle-class rage.

Mr Duhalde later extended the suspension to 11 February, to give the market more time to prepare for the full flotation of the national currency, the peso.

Mr Duhalde described the court as "totally discredited".

A congressional legal adviser said it had abused its authority to stage a political attack on the government and that there were sufficient grounds to impeach the entire bench.

Favourable to Menem

The court previously attracted strong criticism by throwing out arms trafficking charges against former president Carlos Menem last November.

Four of the judges were appointed by Menem

Other rulings under investigation include ones on privatisation and phone-tapping, also regarded as being favourable to Mr Menem.

The former president appointed four of the current nine judges during his 1989-99 presidency.

Mr Duhalde announced on Wednesday that elections will be held on 14 September next year.

The president, who took over amid a political crisis following the resignation of President Fernando de la Rua in December, said he will serve out the remainder of his term.