Chilean right-wing leader quits amid corruption scandal
SANTIAGO, Chile (AP) — The president of Chile’s right-wing Democratic Union party is quitting the party over a campaign financing scandal.
Lawmaker Ernesto Silva announced his resignation Wednesday. Ivan Moreira, another legislator who has admitted receiving “irregular” financing for his campaign, also quit.
Two prominent Chilean businessmen and four associates are being held in pre-trial detention as they face charges including tax fraud bribery and illegally financing the campaign of right-wing politicians.
The key defendants jailed are Carlos Alberto Delano and Carlos Eugenio Lavin, founders of the Penta financial company with interests in insurance, health and real estate. Both deny wrongdoing.
Chile’s corruption is among the lowest in South America, but trust in politicians has been eroded by the Penta case as well as a separate bank loan scandal involving President Michelle Bachelet’s son.