Argentine gov't accuses gas co of 'irregularities'

Argentina accused a major natural gas distributor of "serious irregularities" on Monday - a week after government officials said they may be forced to take over the company if its service falters.

The possibility of a state takeover comes on the heels of President Cristina Fernandez's recent nationalization of more than $20 billion in private pension funds and the country's largest air carrier.

Transportadora Gas del Norte SA is Argentina's third-largest natural gas distributor after Transportadora Gas del Sur and Gas Natural Ban, respectively. It operates 3,540 miles (5,700 kilometers) of pipeline and 17 production plants.

Last week, the government appointed Roberto Pons, an economist with Argentina's powerful industrial union, to oversee the energy company's financial situation for 120 days after TGN said it would default on $22.5 million in debt.

Planning Minister Julio De Vido has said that if the natural gas distributor defaults, the government will take over the company to assure continued service.

Pons presented his investigation to federal Judge Rodolfo Canicoba on Monday, saying he uncovered "serious irregularities" in the company's bookkeeping, which could point to "illegal activity."

He did not elaborate.

TGN blames its dire financial situation on tariff freezes imposed by the government, which prevent the company from raising customers' rates. It also cites rising costs and falling gas exports as the government demands companies distribute more gas domestically to address rising demand and keep prices low at home.