Graft claims against family hit Bachelet popularity

Guardian News and Media/SantiagoAmid a series of political corruption scandals which have upended the Chilean political establishment and delivered a critical blow to her popularity, President Michelle Bachelet yesterday dismissed rumours that she is considering resigning.“I haven’t resigned and am not even sure what the process would be,” a bemused Bachelet told reporters.Bachelet insisted that “corruption in Chile is not widespread” despite stating that an investigation into powerful businessmen and her “family member” were under way. The president’s comments came as Bachelet’s son Sebastian Davalos was to be questioned by prosecutors about his role in a controversial and possibly illegal real estate transaction.Davalos and his wife, Natalia Compagnon, stand accused of using their political connections to obtain a $10mn bank loan which they allegedly used to flip a property in order to earn millions of dollars in a matter of weeks. Last month, Chilean prosecutors seized computers, cellphone records and $4mn as they continued to investigate the business dealings of both the president’s son and her daughter-in-law.While Compagnon testified yesterday, Davalos cancelled his appearance on the advice of his lawyers, fuelling speculation that he has something to hide.The Davalos case is focused on a proposed change to municipal zoning that would have sent real estate prices soaring. But the suspicion that a Bachelet family member was involved in illicit business has come to symbolise a widespread malaise in Chilean politics.In February, Davalos was forced to leave his government job directing the president’s sociocultural agenda. While Bachelet denies any knowledge or involvement in the real estate transaction, a majority of Chileans don’t believe her. Public opinion polls in March showed the president’s approval ratings fell to 31%, down drastically from the 84% with which she finished her first term in 2010. Over the past year the percentage of Chileans expressing disapproval with Bachelet’s leadership jumped from 20% to 61%. Long a champion of Chile’s poor, Bachelet is now battling to maintain her ambitious social reform agenda amidst massive public criticism.“There is an important crisis of confidence,” the president said, “But it is a tremendous opportunity to fill the legal loopholes so this doesn’t happen again.”Over the past 12 months, Bachelet has had multiple legislative victories, including an increase in corporate tax rate to finance free or heavily discounted higher education for tens of thousands of students. The president, a paediatrician, is also pushing to build thousands of free day care centres throughout Chile.The collapse in public support for Bachelet has been trumped by an even more spectacular fall by Chile’s rightwing UDI party - the nation’s largest - with an approval rating that fell to 11% in recent months.