Not only has Gabriel Boric’s government had a complex installation since arriving in La Moneda in March 2022, the first 16 months that followed were no better. The left-wing government, which has no majority in parliament and is backed by two blocs, cannot recover from one blow when the next comes. In September last year, 62% of citizens rejected the proposal for a new constitution supported by the ruling party. In May, the right-wing Republican Party won 35% of the vote and a majority of the seats on the Constitutional Council, which is drafting a new constitution. He had not yet recovered politically from that second electoral defeat when a new fire broke out: a scandal over alleged crimes of influence trading, incompatible negotiations and tax fraud, affecting the Democratic Revolution (RD), the main force of the party group and movements of the Broad Front, President’s. In short, Boric’s government fails to raise its head.
A deputy is involved in the conspiracy, the one who was her friend, the one who was her adviser and the number two casualties from the Housing Department, all DR fighters. It is not President Boric’s party that is pushing for social convergence, but this political force is led by Minister Giorgio Jackson, a “travelling companion” to the President and part of his inner circle. The public prosecutor’s office is investigating the crimes, the right wing is demanding heads and the public accounting authority emerged this Thursday with a categorical decision to suspend the legal validity of all contracts between the state and the foundations. That’s where the scandal arose: The Ministry of Housing at its regional office in Antofagasta in the north of the country transferred 426 million pesos (about $530,000) directly to the Fundación Democracia Viva, which is linked to the DR and the Circle of People’s Deputies The money was supposedly intended to support precarious settlements in the region, which has been badly hit by housing problems.
From a political point of view, the biggest problem with this conspiracy is that it has plunged the president’s core – the Broad Front – into crisis and the promise of honesty with which it burst into Chilean politics less than a decade ago. “Our set of values and principles is a far cry from the generation before us,” Jackson said less than a year ago. Boric has now made it clear: if you have to fall, you should fall. But neither the government’s handling of the crisis nor the behavior of the party involved, the RD, have helped to confine the events to Antofagasta and one specific case. In a matter of days, for example, this political formation went from corporate defense to a witch’s house, fully affecting a government that is not even halfway through its term.
Even phrases like those of MP Gonzalo Winter, who belongs to the President’s party and is very close to him, do not help the government. “No party can claim that as it grows and runs the state, it will be 100% honest,” said the MP.
What’s to come doesn’t look very promising. The Chilean executive is aware that tax reform — which is essential for the government, as Boric well assured in his June 1 report before Congress — is on the up. The investigation of the funds transferred to the Fundación Democracia Viva has sparked debate about the proper use of taxpayer funds. Unlike in 2022, the objection will not be withdrawn. The election results of last September and May have strengthened the right, which has categorically opposed a tax reform like the one the government is striving for. With no concrete proposals to boost growth and given the deficit economy – Chile would grow between 0.5% and 0.25% this year according to the latest central bank forecasts – both the right and the economy are leaving no room for maneuver for the government and Finance Minister Mario Marcel, who conducted the negotiations.
In Congress, meanwhile, the opposition managed to overthrow Education Minister Marco Antonio Ávila, who faces constitutional charges if he is fired. They blame him for the education crisis. If he is not removed before the government – as happened with Justice Minister Marcela Ríos last January – it would be the first successful constitutional charge against a Boric minister. La Moneda tries to pull out all the stops to avoid the professor’s dismissal, but recognizes the great difficulty of achieving this.
While Chileans are witnessing a new scandal on the part of their leaders – conspiracies of this type have not stopped exploding since the 2000s – the strength on which this new conspiracy can capitalize is not apparent. Except, of course, for those not yet at the forefront of the executive branch, such as José Antonio Kast’s Republican Party.
According to polling firm Cadem, released over the weekend, support for President Boric has fallen for the third consecutive week, standing at 28%, while opposition remains at 65%. According to the same survey, 50% knew or heard about the case of the Fundación Democracia Viva, 86% believe there is corruption, while 9% think it is an administrative error. In addition, according to the advisor, 78% disapprove of the way the government has managed this crisis.
It is an unfavorable scenario for the Chilean government, which is unlikely to be able to carry out any major projects, at least until the end of the year. The opposition is holding its breath awaiting the December 17 constitutional vote on leaving, the outcome of which is uncertain. It would not be surprising if, as the polls show, citizens once again reject the proposal for a new constitution.