2006–2007 Chilean corruption scandals
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Transparency International's 2021 Corruption Perceptions Index gave Chile a score of 67 on a scale from 0 ("highly corrupt") to 100 ("highly clean"). When ranked by score, Chile ranked number 27 among the 180 countries in the Index, where the country ranked number 1 is perceived to have the most honest public sector. According to a 2021 study the regions of Ñuble, Los Lagos and Aysén are the most susceptible to suffer
nepotism Nepotism is an advantage, privilege, or position that is granted to relatives and friends in an occupation or field. These fields may include but are not limited to, business, politics, academia, entertainment, sports, fitness, religion, an ...
and
elite capture Elite capture is a form of corruption whereby public resources are biased for the benefit of a few individuals of superior social status in detriment to the welfare of the larger population. Elites are groups of individuals who, because of self ...
.


Corruption in Chile

In December 2005 the mayor of Quillota, Luis Mella (Christian Democrat), alleged the government's Job-Making Program (PGE) paid political allies for work that was not performed. The Public Ministry and the comptroller then initiated parallel investigations into the potential illicit use of public funds. Although earmarked for employment programs, these resources were possibly diverted to the political campaigns of Socialist Party and Party for Democracy candidates in the Fifth Region during the 2005 congressional elections. The PGE investigations revealed that individuals paid to do public works actually spent their time campaigning for political parties.Report on Human Rights Practices 2006: Chile
United States Bureau of Democracy, Human Rights, and Labor (March 6, 2007). ''This article incorporates text from this source, which is in the public domain.''
Further investigations revealed that funds were also misused in other Fifth Region counties. Many midlevel public officials in the regional government, such as the former regional ministerial secretary of labor, were formally investigated, and several local officials were removed. The government took remedial steps to control public employment programs, dismantling the PGE and designating three government agencies to manage recruitment of public works employers and workers and payment of wages. In October a government audit revealed financial irregularities in Chiledeportes, a national program to promote amateur and professional sport activities. Opposition political figures charged that the funds had been diverted into the national political campaigns of ruling party figures, while the organization's director characterized the issue as "common crime." The government removed all 13 Chiledeportes regional directors and initiated a broad-based investigation to determine the extent and nature of potential fraud or mismanagement. Congress created an investigative committee in February, and prosecutors brought charges of tax evasion and falsification of documents against some individuals. Executive, congressional, and judicial investigations were ongoing at year's end. The ''Freedom of Information Act'' requires the government and its agencies to make all unclassified information about their activities available to the public. All government ministries and most public agencies have Web pages. In 2005 the NGO Participa released the results of a far-ranging survey, which found that national and local government agencies failed to respond to 69 percent of requests for information and provided incomplete or otherwise deficient responses to 14 percent of requests.


2006–2007 Chilean corruption scandals

The 2006–2007 Chilean corruption scandals were a series of events that have affected the Chilean governing ''Concertación'' coalition in 2006 and 2007.


Chiledeportes

In October 2006, it was discovered that 90% of the projects of Chiledeportes, the government's sports organization, had some sort of anomaly: either initiatives that were never started or false and nonexistent identities. The investigation into this mystery led to the arrest of Juan Michel, a prominent member of the Christian Democrat Party. Later, it was discovered that much of the money that went to Chiledeportes' Valparaíso Region branch was used to finance the political campaigns of Concertación members, mainly those of Party for Democracy deputies
Laura Soto Laura Filomena Soto González (born 15 December 1931) is a Chilean politician who served as Senator and Deputy of the Republic of Chile. Life She was born in Santiago in 1931. She studied law. She has been her country's ambassador to Nicara ...
and
Rodrigo González Torres Rodrigo René González Torres (26 September 1941 – 4 September 2022) was a Chilean politician. He served as Second Vice President of the Chamber of Deputies of Chile and as a member of the Chamber of Deputies representing District 7 of the ...
. Twenty people were arrested because of this misuse of government funds.


Publicam

The crisis continued when it was discovered that Senator
Guido Girardi Guido Girardi Lavín (born 24 January 1961) is a Chilean doctor and politician. He was a senator in district No. 7 for Santiago Poniente. He previously served as the president of that Senate of Chile, chamber. He usually takes Progressive politi ...
, of the Party for Democracy, had used false bills from a nonexistent company, Publicam, in order to justify his campaign expenses to the Servicio de Impuestos Internos (Internal Tax Service). Some of the members of Girardi's campaign team, among them his lawyer, Dante Leoz, were arrested and accused of financial fraud. Girardi himself is currently under investigation, but there have been no charges. He has denied charges of corruption, but admits that he should have studied his campaign expenses more carefully. Senator
Fernando Flores Carlos Fernando Flores Labra (born January 9, 1943) is a Chilean engineer, entrepreneur and politician. He is a former cabinet minister of president Salvador Allende and was senator for the Arica and Parinacota and Tarapacá regions between 200 ...
, who leads the more liberal faction of the Party for Democracy, temporarily suspended his membership of the party, saying that it was ruled by a corrupt "gang". He later decided to rejoin, but in 2007 he resigned from the party permanently (see below). The right-wing opposition (the
Alliance for Chile The Alliance ( es, Alianza), previously known as Alliance for Chile ( es, Alianza por Chile), was a coalition of centre-right to right-wing Chilean political parties. The Alliance was replaced between 2009 and 2012 by the Coalition for Change. A ...
) likened the Chiledeportes and Publicam cases to previous corruption scandals that took place during the administration of Ricardo Lagos. Former presidential candidate Sebastián Piñera (which later also was found linked to Publicam) said the scandals proved the government had few qualms about committing electoral fraud and intervention. Likewise, former presidential candidate Joaquín Lavín said that the victory of Lagos by a razor-thin 2.62% margin in 2000 could have been due to election fraud. No proof was ever given for such claim.


Whistleblowers

The crisis deepened when Edgardo Boeninger, a Christian Democrat and former Minister Secretary General of the Presidency, said in an interview with influential Chilean newspaper '' El Mercurio'' that "since the beginning of the Concertación it was thought that, since the private sector's money favored the right-wing parties, it would not be illegitimate to receive public overnmentmoney.". His declarations were supported by former deputy Jorge Schaulsohn, founder and former president of the Party for Democracy. Also in an interview with ''El Mercurio'', Schaulsohn said that during the time he presided over his party, all of the four parties of the Concertación coalition received money from the government. Additionally, Schaulsohn reported that government money had also been used to directly finance the campaigns of Concertación candidates. He accused the government and the Concertación of an "ideology of corruption". Lastly, former president and deputy of the Socialist Party Gonzalo Martner in another interview with ''El Mercurio'' declared that Schaulsohn's accusations were correct, and that "public resources were used to finance the activities of the political parties f the Concertación. All the leaders of the Concertación denied the charges of Boeninger, Schaulsohn, and Martner. However, in ''El Mercurio'' former president Patricio Aylwin acknowledged that some ministers in his cabinet had been paid extra money that came from government reserved funds, though he denied the charges of an "ideology of corruption". Other former government officials agreed with these three whistleblowers.


Crisis in the PPD

Although all the parties denied receiving money from the government, only the Party for Democracy (PPD) took action against the whistleblowers. The Supreme Tribunal of the party requested that Schaulsohn testify and present evidence of corruption. Instead, Schaulsohn wrote a report stating his opinions. On December 28, the Tribunal decided to dismiss Schaulsohn from the party. This act caused outrage among many Concertación members, some of whom likened the Tribunal's decision to Stalin's purges. Many wondered why Schaulsohn had been dismissed but no such action was undertaken for Girardi, who is under investigation by the police for corruption. Former Minister of Public Works Juan Etcheberry resigned in protest of the "Stalinist" action of the Tribunal in dismissing Schaulsohn. Senator Flores was one of the prime opponents of the Tribunal's decision. Because of the influence he wields in the party, it was expected that if he resigned, many other members, including more than a few deputies, would resign with him. Flores spoke with Schaulsohn at length during the time both of them stayed in the United States in New Year (Flores has a family in California and Schaulsohn was in New York City). His conferences with the Party of Democracy's president, Sergio Bitar, came to nothing. He then launched an independent political organization called ''Chile Primero'' (Chile First) in what many believed to be a prelude towards his resignation. He finally submitted his resignation in the morning of January 9, 2006.


Effects

Former President Michelle Bachelet, who belongs to the Concertación, has said little regarding the corruption scandals. Meanwhile, former President Patricio Aylwin has been the only one to acknowledge that there might have been corruption during his government, although he insists that if there was, it was not an "ideology" as Schaulsohn described it. Former President and current President of the Senate Eduardo Frei has denied there was corruption during his government, and former President Ricardo Lagos has done likewise. The presidents of the four Concertación parties have all denied that their parties received or have ever received money from the government. The Socialist Party President
Camilo Escalona Camilo Escalona Medina is a Chilean politician. He was the President of the Senate. He served as chairman of the Socialist Party of Chile The Socialist Party of Chile ( es, Partido Socialista de Chile, or PS) is a centre-left political party ...
was particularly enraged by Schaulsohn's remarks, and threatened to sue him for libel. Sergio Bitar of the Party for Democracy said he would not interfere with the Tribunal's decision to dismiss Schaulsohn, although he remarked it would've been better if he had not been dismissed. After Flores' resignation, Bitar declared that he had done "everything possible" to maintain party unity and that any "responsibility" lay on those who voluntarily left. Bitar maintained he hoped to have positive relations with Flores despite the latter's resignation. The next day, Flores supporter and deputy Esteban Valenzuela also resigned.


Investigations

The opposition
Alliance for Chile The Alliance ( es, Alianza), previously known as Alliance for Chile ( es, Alianza por Chile), was a coalition of centre-right to right-wing Chilean political parties. The Alliance was replaced between 2009 and 2012 by the Coalition for Change. A ...
pressed for investigations regarding the recent discoveries of corruption. The case is currently being investigated by Judge Macarena Rubilar, of the Second Criminal Court of Santiago. On January 6, she called Boeninger, Martner, and Genaro Arriagada (the latter had also spoken of corruption in the government) to testify. Schaulsohn testified before Judge Carlos Aránguiz of the Court of Appeals of Rancagua on January 10, upon his return from a New Years trip to New York City. Meanwhile, the Alliance for Chile requested the creation of an investigative commission regarding the corruption in the Chamber of Deputies. The commission was originally headed by
Nicolás Monckeberg Nicolas Monckeberg Díaz (born 31 July 1973) is a Chilean politician. He was born in a family of Germans, German descent. He completed his secondary education in the Tabancura College in Santiago. He joined the Faculty of Law of the Catholic Un ...
, of the opposition, but the Concertación members of the commission requested that Monckeberg be censured for his supposedly "overagressive" interrogation of the chairman of Chiledeportes, Catalina Depassier. Monckeberg denied that he mistreated Depassier and the Alliance accused the Concertación of trying to halt the investigations. When Monckeberg was finally replaced by Enrique Jaramillo (a member of the Concertación), the Alliance withdrew from the commission in protest. Instead, the Alliance decided to do their own investigation into the corruption, and presented their report the same day the Concertación presented the official one. The Alliance's report was much more critical than the official one, and accused PPD deputies Rodrigo González, Marco Antonio Núñez, Laura Soto, and Socialist deputy Marco Enríquez-Ominami to have been involved in corruption during their election campaigns. The official report limited itself to blaming the former independent of Valparaíso, Luis Guastavino. When the Chamber voted to accept the official report, the Christian Democrats decided to abstain, declaring that the electoral fraud and intervention that was uncovered benefited the Party of Democracy and the Socialist Party. Therefore, falling four votes short of the necessary 58 votes, the official report was rejected by the Chamber. The Alianza's report, among other things, discovered that the head of Chiledeportes, Christian Democrat Catalina Depassier, lied about her credentials. In her official curriculum, Depassier stated that she had graduated with a license in philosophy from the University of Chile. In an interview with the press, Monckeberg stated that a phone call with the vice-headmaster of the university revealed that Depassier had never graduated from that institution. "The University explained that epassieronly studied Humanities there for a semester in '85. They also told us that in '84, healso studied for one semester in the school of Government and Public Service, which she left for academic reasons," Monckeberg said in an interview with ''El Mercurio''. On January 23, two days after Monckeberg's declarations, Depassier submitted her resignation to President Bachelet, which was approved. In a later press interview, Depassier apologized for the false information about her curriculum. She lashed out against the Alliance, accusing them of waging a "personal" campaign against her. The presidents of the
UDI Udi may refer to: Places * Udi, Enugu, a local government areas and city in Nigeria * Udi, a place in the Etawah district of Uttar Pradesh, India People * Udi Gal (born 1979), Israeli Olympic sailor * Udi Vaks (born 1979), Israeli Olympic judoka ...
and National Renewal both denied that there was a "personal factor" in the accusations. The UDI president added, "It was she who lied to the country. She should not try to protect herself by blaming those who have made proven accusations against her". Meanwhile, deputies Soto and González denied the charges that they had used government money to fund their election campaigns, saying the accusations were a "political maneuver by the right". On January 25, they "froze" their membership of the Party for Democracy, supposedly to avoid harming the party.


Trials

The Public Ministry formally charged Deputy Laura Soto with
embezzlement Embezzlement is a crime that consists of withholding assets for the purpose of conversion of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes. Embezzlement is a type ...
for using state funds of the ''Programas de Generación de Empleo'' (PGE, Job Making Programs) to finance her 2005 electoral campaign on March 5, 2007. Soto refused to attend the hearing, and her attorney Juan Carlos Manríquez declared that she believed her presence was unnecessary. Manríquez also questioned the legality of subjecting a congressperson to an investigation and trial. He criticized the Public Ministry for not having insufficient evidence and declared the Constitutional Tribunal should decide whether Soto should be investigated. Judge Jorge Abott responded by saying the Public Ministry would continue their investigation. Soto denied critics' assertions that she was "hiding" from the investigation and trying to use her position as deputy to halt them. She also denied any knowledge of the use of PGE money to fund her campaign. The Public Ministry has announced it is also investigating Soto's daughter Marisol Paniagua, member of the municipal council of Valparaíso, and José Manuel Mancilla, Regional Secretary of Labor in the Valparaíso Region, for embezzling using the PGE money. Deputy Rodrigo González, facing the same charges, will be charged on April. Laura Soto has been acquitted of all charges by the tribunal.


See also

* List of political scandals in Chile * Pinocheques General: *
Crime in Chile Crime in Chile is investigated by the Chilean police. However, unlike the majority of Latin America, criminal activity in Chile is low, making Chile one of the most stable and safest nations in the region. Various analysts and politicians concur th ...


References


External links


The Underside of Chilean Democracy
by Alfredo Rehrens in "Harvard Review of Latin America" Spring 2004
Biography of Guido Girardi from the Chilean Library of Congress

Biography of Jorge Schaulsohn from the Chilean Library of Congress

Biography of Francisco Flores from the Chilean Library of Congress

Biography of Sergio Bitar from the Chilean Library of Congress

The Chiledeportes official webpage

Senator Fernando Flores' blog
{{South America topic, Corruption in Politics of Chile Political scandals in Chile Chile Crime in Chile by type
Corruption Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption m ...
Corruption Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption m ...
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