The "Pandora's Document" stirred up Chile's presidential election

Source: Workers Daily

The "Pandora's Papers" stirred up Chile's presidential election

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The "Pandora document" has led chilean President Pinera to be investigated again, and the opposition has also demanded his impeachment. At present, both the left and right presidential candidates have been affected by the incident, making the future political situation in Chile more elusive.

The quadrennial Chilean presidential election will kick off on November 21. At present, all indications are that this will be a fierce left-right battle. Recently, a data on overseas assets called "Pandora's Document" was exposed, which once again stirred up the current sensitive political situation in Chile.

The "Pandora Storm" swept through Latin America

The Pandora's Papers, which published nearly 11.9 million classified documents, exposed the use of offshore companies by leaders, politicians, and celebrities to conceal assets and evade taxes.

The first declassified list involved about 400 officials from nearly 100 countries, including 35 current and former heads of state and government, the document said. Among them, the situation in Latin America is particularly striking.

Politicians from 18 Latin American countries are on the list, including the presidents of Chile, Ecuador and Dominica, as well as 11 former national leaders. In addition, most of the 14 financial services companies surveyed are also located in the British Virgin Islands, Panama, Belize and other places in the Caribbean and Central America.

As one of the regions with the most serious differences between rich and poor in the world, "suffering from inequality without suffering from widowhood" has become a true portrayal of the current Latin American society. This time Latin America has become the "Eye of the Storm", and the situation in Chile is the most complicated.

Chilean president is "turned over"

The "Pandora Document" made a detailed analysis and interpretation of an overseas acquisition during the first term of President Pinera of Chile, and determined that Pinheira's business behavior had hidden assets and tax evasion abroad.

Documents show that before Pinheira became president in 2010, he sold a "Dominga mine" in The Coquimbo region of northern Chile for $152 million to his childhood friend, businessman Delano. The payment for the transaction was made in three installments, the first two of which had been delivered by 2010, and the third payment termed "not to make the Humboldt Penguin Nature Reserve in the Coquimbo region a restricted area for project construction", which was completed in August of that year at the British Virgin Islands tax haven, when Pinheira had successfully assumed the presidency of Chile. There has been speculation that Pinera may have used her position to profit from the project, and she herself was judicially investigated and confirmed innocent in 2017.

After the publication of the above documents, public opinion in Chile and abroad was high, and the Chilean Prosecutor's Office subsequently announced its decision to restart the investigation of Pinera and her family's related relatives. Chile's presidential palace said it would accept all investigations but firmly opposed the groundless allegations, repeatedly reiterating that "Since winning the presidency in 2009, Pinheira herself has not been involved in any corporate buying and selling activities for 12 years."

Pinheira, a billionaire and president of the country, has the fourth largest private wealth in the country. The opposition, which is just over a month away from Chile's presidential election on November 21, has formally filed a constitutional complaint against the House of Representatives over the incident, demanding the president's removal.

Election uncertainty has risen

2021 is a crucial year for chilean elections. The intertwining of the election year and the COVID-19 pandemic has made the future political trend in Chile more elusive.

In May this year, Chile held both "constituent assembly" elections and local elections, which were called "unique and historic 'super elections' by the Chilean media" In this election, the right-wing ruling coalition was completely lost, and the former center-left ruling coalition performed poorly, but the electoral coalition composed of independents and left-wingers showed unexpected results, winning half of the seats in the "Constituent Assembly" in one fell swoop. Jadou, a left-wing communist who has led the way in several previous rounds of polls, has led the way in presidential candidates and is seen as the hottest candidate for the current Chilean presidency.

However, in the presidential primary in July, the outcome was reversed again. In the "Pro-Dignity" campaign coalition, formed by a broad front and the Communist Party, the center-left man Borik came to the top, surpassing Jadou in support and officially becoming the official candidate of the left. Borik will run for the presidency alongside the right-wing candidate Sicher of the ruling coalition Chile Forward, the far-right independent Castor and the centrist Humanitarian Party Provost.

Currently, Bolik and Sitcher are considered two popular candidates. Chilean community generally believes that Piñera's accusations in connection with the Pandora Document will create a "precious opportunity" for Boric. Soon after the "Pandora document" was exposed, Borik issued a statement saying, "Chile should not be allowed to become the focus of world news because of the shameless behavior of the President of Chile."

On the other hand, the situation facing Sicher is even more serious. As the former president of Chile's central bank and the former minister of social development under Piñera, the interests, future and destiny of the two have long been deeply tied, so even in the case of one-sided public opinion, Siccell still suggested "cautious use of impeachment mechanisms" and believed that "Pinera is innocent". But whether the news is true or not, Sitcher will have a hard time getting rid of the negative impact and collateral damage of this incident.

The latest poll by Chile's Cadem shows that Sicher's approval rating has dropped to fourth, behind third place Provost, Castel in second place and Borik firmly in first place. As far as the current situation is concerned, the "Pandora Incident" is still fermenting, the winning advantage of the center-left is expanding, and there may be a "post-neoliberal era" Chile in the future.

(Author Zhang Jieyu Unit: Institute of Latin America and the Caribbean, China Institute of International Studies)