Chilean right-wing party leader quits over graft scandal

The president of Chile’s right-wing Independent Democratic Union (UDI) party has stepped down following allegations of a campaign-financing scandal.

“Under these circumstances, I’ve made a really difficult decision… I’ve presented my resignation as the president of the UDI,” Ernesto Silva announced on Wednesday in a televised speech after he came under fire for mishandling the scandal and abusing Chileans’ trust in politicians.

Carlos Alberto Delano and Carlos Eugenio Lavin, who are the founders of financial firm Banco Penta, are the key defendants currently in prison along with four associates over the graft case.

They faced bribery and tax evasion charges a week ago, in a probe that has threatened business leaders and politicians in the South American country.

However, both individuals reject the charges. If found guilty, they could face up to 15 years in jail.

Another lawmaker from the party, identified as Ivan Moreira, also quit after he admitted receiving “irregular” financing for his campaign.

Banco Penta, one of Chile’s largest economic firms, specializes in individual and institutional asset management. The firm also has interest in insurance, health and real estate.

Chileans’ trust in politicians has already plunged amid allegations that the son of the country’s President Michelle Bachelet was involved in a bank loan scandal.