Chile’s President Boric Takes Another Blow to Popularity as Graft Accusations Hit Key Allies

(Bloomberg) -- Chilean President Gabriel Boric’s coalition is under scrutiny as members of one of its parties face corruption and influence trafficking accusations, compounding challenges facing the leftist government.

Most Read from Bloomberg

• Putin Claims He’s Back in Control. Russia’s Elite Isn’t Sure

• UBS Preparing to Cut Over Half of Credit Suisse Workforce

• Biden Can Cancel Student Debt Even If Supreme Court Blocks Order, Advocates Say

• Trump Sues Carroll for Defamation Over Post-Trial Rape Claim

• Sweden Police Give Permit to Koran Burning Near Stockholm Mosque

The head of Revolucion Democratica, Juan Ignacio Latorre, said on Tuesday that his party will file a suit against those who are found responsible for alleged wrongdoing at a foundation run by some of its members.

Latorre said the party suspended lower house Deputy Catalina Perez’s membership after online publication Timeline Antofagasta revealed earlier this month that the foundation Democracia Viva, created by her ex-boyfriend, had received more than 400 million pesos ($500,000) to do consultancy work on improving living conditions at informal encampments and shantytowns.

The foundation had no experience in that field, though it was hired in the same region that Perez represents by a Housing Ministry official who had served as her chief of staff. Perez has publicly denied any wrongdoing, saying she had no knowledge or relationship with the payments.

Boric’s administration is working to keep distance from the allegations as it grapples with fresh challenges including overrun hospitals and destruction caused by torrential rains. The president’s approval rating tumbled for the third straight week, hitting 28%, according to pollster Cadem, which also found that 86% of respondents who have heard of Democracia Viva believe there was corruption.

On Saturday, Boric ordered Housing Ministry Undersecretary Tatiana Rojas to resign. Rojas, who is also a member of Revolucion Democratica, had acknowledged she had been warned of irregular payments at the foundation.

Most Read from Bloomberg Businessweek

• The Bank Robbers Who Are Stealing Their Own Money

• The Low-Tech, High-Stakes World of Ripping Off Benefits Recipients

• The World’s Empty Office Buildings Have Become a Debt Time Bomb

• The Ad Industry Has No Intention of Letting AI Ruin the Party

• The ‘Extend and Pretend’ Real Estate Strategy Is Running Out of Time

©2023 Bloomberg L.P.