A civil court in Santiago, Chile, has ordered the relatives of former Chilean dictator Augusto Pinochet to repay $16.2 million USD to the state, following a successful lawsuit by the State Defense Council (CDE) for fraudulent misconduct.
The court determined that the sum was appropriated from public funds and transferred to Pinochet’s personal bank accounts, where it was used to purchase properties and other financial assets. His heirs must now surrender these assets to Chilean tax authorities.
“Seven years after its filing, the lawsuit for fraudulent misconduct- which is now being fully accepted by the courts- is part of a series of actions taken by the CDE to repair the exorbitant damages caused by the misappropriation of public funds committed by Pinochet and his collaborators,” noted Raúl Letelier, president of the CDE.
The financial investigations originated in 2005 when reports revealed that Pinochet and his family had concealed $15 million USD across more than 125 accounts at various international banks, including Citigroup, Riggs Bank, and Coutts- the U.S. branch of the Queen’s bank. Riggs subsequently agreed to pay nearly $9 million in penalties.
Pinochet died in 2006 without facing conviction on any charges, including those related to the murder and torture of thousands during his 17-year military dictatorship (1973-1990). During his time in power, approximately 3,200 people were killed or disappeared, and 38,000 were tortured.
Read more: Former soldiers sentenced to murders committed in dictatorship-era Chile
Image Source: Paulo Slachevsky via Wikipedia
License: Creative Commmons Licenses
In 2018, the CGE launched another investigation, which led to the current ruling.
“Although it was not possible to hold Mr. Pinochet Ugarte criminally responsible- due to his death-, it is proven that he engaged in conduct that involved theft of public funds, estimating that his unjustified income amounted to at least $17,886,232.20 USD,” the court noted.
Investigators also clarified that the funds came from reserved expenses allocated to the presidency, the military household, and the commander-in-chief of the Chilean army, according to newspaper El País.
They also agreed to recover the money embezzled by the former dictator that had not yet been confiscated.
Throughout the legal proceedings, Pinochet’s family maintained that his wealth originated from legitimate savings, donations, and investments. However, an academic study commissioned by Chile’s Supreme Court concluded that the dictator’s military salary could only account for $3 million of his total $21 million USD wealth.
The family’s legal team also argued that the statute of limitations had expired.
The court dismissed this appeal, meaning the heirs must return the money in amounts proportional to their share of Pinochet’s inheritance. The repayment will act as one of the largest repayments made to the State from any corruption-related case.
Featured image credit:
Image: Pinochet family after his funeral, 2006
Author: En Todos Lados
Source: Wikimedia Commons
License: Creative Commons Licenses
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