The 2021 Pandora Papers investigation revealed that the family of Chile’s President Piñera family sold their stake in a mining project to a close friend and business partner in 2010.

The leaked documents reportedly show that the parties signed two contracts: one in Chile and one in the British Virgin Islands, for a total of US$152 million. The amount was to be paid in three instalments and the third payment came with an alarming condition: the government cannot strengthen environmental protections in the Dominga mining operations area.

The allegation that the President put his friend’s and his own financial interests above the possible need for nature conservation points to possible misconduct and regulatory capture. As a consequence, a group of parliamentarians have initiated impeachment proceedings against President Piñera in October 2021.

Several countries in Latin America have committed to or have already taken steps towards creating beneficial ownership registers, which would help prevent such abuses. Our colleagues at Chile Transparente are urging the Chilean government to follow suit.

Sources:
https://www.latimes.com/world-nation/story/2021-10-04/pandora-papers-world-leaders https://www.theguardian.com/world/2021/oct/13/chile-sebastian-pinera-impeachment-proceedings-pandora-papers