Since the financial crisis erupted in September of 2008, across the world the line between politics and business has become increasingly blurred. In Chile this phenomenon has become particularly pronounced as national political leaders juggle the tasks of keeping their country’s economy on track while also jockeying for position in upcoming presidential elections.
Sebastian Piñera, one of Chile’s wealthiest businessmen who is part of LAN Airlines S.A.’s (Santiago Stock Exchange: LAN) controlling coalition, is the current front-runner in the country’s 2009 presidential race. In recent months he has been the subject of particular attention from the media and political rivals. This past week Mr. Piñera became the subject of attack after press sources revealed that through an investment firm he owns, he controls a small stake in Farmacias Ahumada (Fara), one of several major Chilean retail pharmacies recently accused of involvement in a high-profile price collusion scandal.
Piñera acknowledged to local Spanish-language press sources that through his Santa Cecilia investment fund he controls a small stake in Fara, just “like millions of Chilean [investors] and individuals whose pension funds hold stakes in the company.”
He added that attempts to assert that he “holds some responsibility for what happened with the pharmacies” are an unfortunate “abuse of power” by his political rivals.
Chilean press sources have reported that left-of-center candidate Eduardo Frei, Piñera’s primary competition in the upcoming presidential election, has seized the issue, and has, on national radio, expressed his belief that the Chilean public “is contemplating with astonishment [the fact that Piñera] is a shareholder in Farmacias Ahumada,” a company that has defrauded Chileans out of money spent on healthcare and pharmaceuticals.
Michelle Bachelet, Chile’s popular incumbent left-of-center president told press sources that her government would not tolerate “unscrupulous practices in any sector” and added that healthcare is one area in particular where “people should not play games.”
In recent months as presidential campaign tensions have heightened, Piñera, whose estimated net worth is over US$1 billion, has faced numerous threats of politically motivated investigations and mounting pressure to sell his holdings, which include a 27% stake in LAN Airlines, as well as minor stakes in numerous other companies. A conflict of interest law passed earlier this month forces asset-owning candidates like Mr. Piñera to liquidate their holdings.
Press sources have reported that Piñera is negotiating with LAN’s other main controlling shareholder, the Cueto family, over the eventual sale of his stake in the company. LAN has not published any official statements on its corporate website and has not filed any relevant documents with Chile’s securities market regulator, the SVS.
Sebastian Piñera, one of Chile’s wealthiest businessmen who is part of LAN Airlines S.A.’s (Santiago Stock Exchange: LAN) controlling coalition, is the current front-runner in the country’s 2009 presidential race. In recent months he has been the subject of particular attention from the media and political rivals. This past week Mr. Piñera became the subject of attack after press sources revealed that through an investment firm he owns, he controls a small stake in Farmacias Ahumada (Fara), one of several major Chilean retail pharmacies recently accused of involvement in a high-profile price collusion scandal.
Piñera acknowledged to local Spanish-language press sources that through his Santa Cecilia investment fund he controls a small stake in Fara, just “like millions of Chilean [investors] and individuals whose pension funds hold stakes in the company.”
He added that attempts to assert that he “holds some responsibility for what happened with the pharmacies” are an unfortunate “abuse of power” by his political rivals.
Chilean press sources have reported that left-of-center candidate Eduardo Frei, Piñera’s primary competition in the upcoming presidential election, has seized the issue, and has, on national radio, expressed his belief that the Chilean public “is contemplating with astonishment [the fact that Piñera] is a shareholder in Farmacias Ahumada,” a company that has defrauded Chileans out of money spent on healthcare and pharmaceuticals.
Michelle Bachelet, Chile’s popular incumbent left-of-center president told press sources that her government would not tolerate “unscrupulous practices in any sector” and added that healthcare is one area in particular where “people should not play games.”
In recent months as presidential campaign tensions have heightened, Piñera, whose estimated net worth is over US$1 billion, has faced numerous threats of politically motivated investigations and mounting pressure to sell his holdings, which include a 27% stake in LAN Airlines, as well as minor stakes in numerous other companies. A conflict of interest law passed earlier this month forces asset-owning candidates like Mr. Piñera to liquidate their holdings.
Press sources have reported that Piñera is negotiating with LAN’s other main controlling shareholder, the Cueto family, over the eventual sale of his stake in the company. LAN has not published any official statements on its corporate website and has not filed any relevant documents with Chile’s securities market regulator, the SVS.
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