Facing growing scandal, President Bachelet's son resigns from foundation
Share this on

Facing growing scandal, President Bachelet's son resigns from foundation

The son of Chilean President Michelle Bachelet has resigned as head of her charitable foundation following criticism that he and his wife profited from privileged access to a bank loan.

While Sebastian Dávalos has said the deal was not illegal, he acknowledged late Friday that the controversy has “damaged the president and the government.”

Critics contended Dávalos and his wife benefited from privileged information and treatment in receiving a $10 million loan to buy property. The loan was fast-tracked for approval by the Banco de Chile after the couple met with its vice president, Andronico Luksic, one of Chile’s richest men.

See also: Corrupt businessmen: Owners of Chile’s political class

The loan was secured during Bachelet’s 2013 presidential campaign.