SQM case

Sociedad Química y Minera de Chile (SQM) is a Chilean chemical and mining company that mines lithium and makes fertilizer and other chemicals. The company is currently under indictment and investigation for diverting funds to different politicians in Chile. The SQM Case is closely related to the Penta Case, since defendants from both cases overlap and it is the same type of crime. So it's also called the Penta-SQM Case. So far, 6 defendants have been charged.^[1]

This case^[2] includes tax fraud and violations of political campaign laws. Different persons, either politicians or their advisers or even family members, created fake invoices which SQM then paid. It is alleged that those who created these fake invoices then passed those funds onto political parties in violation of campaign finance laws. So they were acting on behalf of the politicians, without the politicians being involved directly. As to whether those funds bought any favors from the politicians for SQM, so far that has only been demonstrated in the case of Pablo Wagner, who was a former mining minister. New charges (August 2015) brought against certain defendants now include steering contracts.

In 2017, the United States government announced a deferred prosecution agreement with SQM, in which SQM would pay $15mm USD, to settle Foreign Corrupt Practices Act charges.^[3]

The principal stock holder of SQM is Julio Ponce Lerou, formerly son-in-law of the late dictator Pinochet. He is not charged with any wrong doing.

Charges brought against employees and owners of SQM

Name	Position	Status
Eugenio Ponce	VP SQM	accused of signing fake invoices
Patricio Contesse González	former general manager SQM	charged with tax crimes
Carlos Alberto Délano	owner	house arrest at night
Carlos Eugenio Lavín	owner	house arrest at night
Roberto Guzmán	advisor to Julio Ponce	charged

This case is different from the Penta Case in that false invoices the tax authorities (SII) were then used to funnel money to politicians on both sides of the political spectrum. In the Penta Case, funds were diverted to right wing politicians of the RN and UDI parties. In the SQM case, the members of the governing coalition, the Nueva Mayoria, received funds as well.

This case is still under investigation. The politicians under investigation are listed below. In many cases payments were made to their assistants^[4] and not directly to the politicians.

Governing Coalition (Nueva Mayoria)

Name	Party	Status
Alejandro Bahamondes	former VP of PPD party and partner of Kybalion Consultores Limitida who issued $22 million CPL in invoices to SQM	resigned as Chilean ambassador to Paraguay[5]
David Flores	campaign advisor to Carolina Tohá (OOD), mayor of Santiago	charged

Others

Name	Role	Status
Alberto Ayala	prosecutor	under investigation[6] for leaking details of SQM case to Rodrigo Peñailillo
Rodrigo Peñailillo	Minister of Interior in Bachelet government	resigned as Minister of the Interior in Bachelet government because of connections to SQM case in which he had to defend payments made by the firm to him before he entered the government
Giorgio Martelli	partner, Asesorías y Negocios SpA, fundraiser for President Bachelet's first campaign for president	charged with tax crimes and evasion of taxes between 2009 and 2013 which overlaps at his time as political operative in the Bachelet campaign
Carolina de la Cerda	sister-in-aw of former mining sub secretary Pablo Wagner	under investigation

Alliance (Conservative)

Name	Party	Status
Jovino Novoa	founding member and former of UDI	Charges with presenting false tax declaration and false invoices to the tax authorities (SII) in the amount of 80 million CLP. Under house arrest[7]
Claudio Eguiluz	ex vice president RN	is charged in criminal court by prosecutors of the Public Ministry [8] with tax fraud for 465,000 Chilean Pesos. Charges were dismissed when tax authorities (SII) did not present their own charges. The prosecution needs for the separate tax agency to file charges as well.
José Tomás Longueira Brinkmann	son of former senator and presidential candidate Pablo Longueira (UDI)	José Longueira issued invoices[9] to SQM in 2010 for $4.450.333 CLP
Pablo Wagner	mining sub secretary under President Piñera	house arrest at night
Jaime Orpis Bouchon	Senator (UDI)	also implicated in Corpesca corruption case
Santiago Valdés	Former manager of Bancard and official in presidential campaign of President Piñera	charged with tax crimes [10]
Alejandro Sule	former congressman (PR)	charge with tax crimes

References

1. "Fundraiser for Bachelet Campaign Charged with Tax Crimes". Southern Pacific Review. Retrieved 15 September 2015.
2. "EL CASO SOQUIMICH (SQM) EXPLICADO CON MANZANITAS". Economia para Todos. Retrieved 28 July 2015.
3. "Office of Public Affairs | Chilean Chemicals and Mining Company Agrees to Pay More Than $15 Million to Resolve Foreign Corrupt Practices Act Charges | United States Department of Justice". www.justice.gov. 2017-01-13. Retrieved 2024-09-25.
4. Matus, Javiera. "Penta-SQM: fiscalía pide al Congreso registro de pagos a asesores de siete políticos". Retrieved 9 August 2015.
5. E, J. "Embajador de Chile en Paraguay renuncia y dice que su decisión se relaciona con case SQM". El Mercurio. Retrieved 10 August 2015.
6. FERNÁNDEZ, BASTIÁN; SEPÚLVEDA, NICOLÁS (10 August 2015). "Las tesis internas en la Fiscalía para explicar el misil de Chahuán contra Ayala". El Mostrador. Retrieved 10 August 2015.
7. Caraval, Cynthia. "Defense de Novoa acusa a SII de trato desigual por no existir querella contra la firma Martelli". El Mercurio. Retrieved 31 July 2015.
8. Caraval, C.; et al. "SQM: Jueza acogío tesis de no formalizar Eguiluz por no existar acción legal de SII". El Mercurio. Retrieved 28 July 2015.
9. Vega, María José. "Hijo de Longueira figura entre los que emitieron boletas a SQM". Retrieved 10 August 2015.
10. Chaparro, Andrea; Carvajal, Cinthya. "Penta-SQM: masiva formalización include a ex gerente de Bancard y ex diputado radical". El Mercurio. Retrieved 20 August 2015.