Chavez says 'nothing to hide' in Argentina scandal

CARACAS, Aug 19 (Reuters) Venezuelan President Hugo Chavez today said he had ''nothing to hide'' in an ongoing scandal over how 800,000 dollars in undeclared cash ended up in a plane with Venezuelan officials headed toward Argentina.

The scandal has led to resignations in both countries and become and embarrassment for Chavez and Argentine President Nestor Kirchner, who has insisted he had nothing to do with the incident.

''We, as Kirchner said, have nothing to cover up, nothing to hide,'' Chavez, who has avoided the subject since initial details first surfaced, said during his weekly Sunday broadcast.

He said the investigation was the responsibility of police, customs and other institutions, rather than the governments.

The scandal has dominated Venezuelan headlines since the scandal broke during Chavez's visit to Buenos Aires in early August to promote energy cooperation with the Kirchner government.

Customs officials impounded the cash from Venezuelan businessman Guido Antonini, who flew from Caracas to Buenos Aires in a plane chartered by Argentine energy company Enarsa.

Antonini boarded the flight at the request of an employee of Venezuelan state oil company PDVSA.

Officials allowed Antonini to leave Argentina immediately after the incident, but an Argentine prosecutor on Tuesday requested a warrant for his arrest on smuggling charges.

Chavez and Kirchner have both vowed to crack down on rampant corruption, which was prevalent during Venezuela's 1970s oil boom and thrived during Argentina's free-market reforms in the 1990s.

Reuters CS VP0315