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The money that the officers and troops deposited for their retirement was used for other purposes.
Chile's Public Ministry and the Investigation Police opened an investigation against nearly 800 serving and retired army officials on corruption charges.
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Over 500 retired officials and 270 in practice have been subjected to an investigation into alleged fraud to the treasury committed from 2007 until 2017 after the Mutual Aid Fund (FAM) was closed.
The Comptroller's and the Prosecutor's Offices are set to inquire into the creation of a fund in "Region XI" military zone where the officials deposited money monthly to be withdrawn once they left the institution.
The investigations will also be focused on the payments of private debts with public funds and the expenses of military troops assigned to the United Nations Peace Forces in Haiti.
help!! Chilean president sebastian piñera # triangulaciondepiñera is in the first place of the TT in CHILE and no mass and traditional media has referred to the serious complaint of corruption that weighs on Piñera and his family around the AFP funds, money from all workers!! pic.twitter.com/lfkSPBEMV0
— Eladiojarariffoacevedocurin (@Eladiojara1) November 26, 2020
Previous research has shown that the Army used tax money to compensate officials in the event of retirement or relocation, make payments for services that were never delivered, or finance studies, travel and other benefits.
The FAM, which was an informal solidarity system that operated in Coyhaique city, went bankrupt in 2006 when it ran out of funds.
Ayen Regional Prosecutor Carlos Palma, who has already issued an arrest warrant against the officials, led a similar investigation at the Army's Personnel, Telecommunications, and Finance Departments in Santiago in 2018.
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