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Chile

In law
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In practice
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Chile has a strong system of direct and indirect public funding for parties and candidates. In law and practice, public resources are provided equitably and in accordance with legally defined mechanisms. Documented cases of the abuse of non-financial resources during the 2013 elections are rare. Restrictions on contribution and expenditure exist, but loopholes are present within the system. Some forms of anonymous contributions, for example, are permitted. Campaign spending, by both parties and candidates, is limited to a maximum amount. In practice, the evidence indicates that some of the legal restrictions were violated during 2013, and some expenditures may have exceeded the specified limits. Legally established reporting requirements are fairly sparse in Chile - post election reports are required of all political actors, and parties must submit annual reports. In practice, reports usually omit at least some contributors. Incomplete reports and a dearth of standardization mean that, in practice, limited information is available to the public. In law, third party actors are prohibited from engaging in independent political activities. Nevertheless, in practice, some organizations do conduct such activities. The Electoral Service is charged with oversight of political finance, and its leaders are typically independent and appointed, at least in part, based on merit. The Electoral Service has sufficient staff and budget to carry out its responsibilities, but it does not publish information on its investigation results. It can and does impose some sanctions, but equitable enforcement is incomplete, and accusations of dark money continue to pervade Chilean politics.

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    Direct and Indirect Public Funding

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      Direct Public Funding
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        1
        Score
        YES
        In law, there is direct public funding for electoral campaigns.More about indicator

        In Chile direct public funding exists for both political parties and individual candidates for expenses made during the official electoral campaign phase. According to article 13 of Law 19.884, "the State will finance...the electoral campaign spending incurred by candidates and political parties that present candidates."

        Law 19.884 regulates public funding and private donations to political parties and candidates that compete in presidential, parliamentary, and municipal elections, and in elections of members of the regional councils.

        Scoring Criteria

        A YES score is earned where there is direct public funding for both political parties and individual candidates to campaign. A 100 also applies where only one of the two actors can be elected and, therefore, only one is entitled to direct public funding.

        A MODERATE score is earned where per law only one of the two actors (either political parties or individual candidates) is allocated direct public funding to campaign, even though both can be elected.

        A NO score is earned where no such law exists.

        Sources

        Law 19.894 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 13 - 15. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

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        YES
        In law, there is a transparent and equitable mechanism to determine direct public funding for electoral campaigns.More about indicator

        In Chile, direct public funding for political parties and individual candidates' electoral campaigns is allocated through a clearly defined calculation mechanism that is transparent, objective, and equitable. Law 19.884 defines (i) criteria to be met for a political party or independent candidate to receive fiscal advances for parliamentary and municipal elections + elections of regional councils, and defines (ii) a final repayment to candidates elected in presidential, parliament and municipal elections + elections of regional councils (They will receive an amount per vote obtained, expressed in UF – a financial unit in Chile, free of inflation; for each election, the Electoral Service publishes the exact maximum amounts candidates can spend in each electoral zone, in Chilean Pesos).

        I. Presidential elections:

        A portion of electoral expenses paid by candidates during the official campaign phase is repaid with public funds. The calculation formula is as follows: 0,03 * UF * Nº of votes. (approx. 687 CH$ per vote = 1,2 US$ per vote, considering an exchange rate of 573 CH$ per US$). If there is a second round, candidates will receive an additional maximum repayment of electoral expenses according to the following formula: 0,01 * UF * Nº of votes. (approx. 229 CH$ per vote = 0,4 US$ per vote, considering an exchange rate of 573 CH$ per US$). Fiscal funds will be used only for expenses that are not covered by private donations.

        II. Parliament + Municipal Elections + elections of Regional Councils:

        Fiscal Advance to political parties: At the beginning of the campaign, each party that presents a candidate for parliament or municipal elections will get an advance of fiscal funds to finance the campaign, based on the results of the respective previous election. Formula: 0,01 * UF * Nº of votes obtained in previous election (approx. 229 CH$ per vote= 0,4 US$ per vote, considering an exchange rate of 573 CH$ per US$).

        Parties that did not participate in previous elections will receive the same amount that the party with the fewest votes in the previous election would receive. Independent candidates (that compete independently of any political party) will share between all independent candidates the same amount the party with the fewest votes in the previous election would receive.

        Final repayment to political parties after elections: Formula: 0,015 * UF. * Nº votes obtained – fiscal advance already received. This payment is additional to the final repayment the candidates directly receive, with the objective to support that candidates compete in elections associated with a political party.
        (approx. 344 CH$ = 0,6 US$ per vote obtained - approx. 229 CH$ per vote= 0,4 US$ per vote obtained in previous election).

        Final repayment made directly to candidates: Formula: 0,03 UF * Nº votes obtained (approx. 687 CH$ per vote = 1,2 US$ per vote, considering an exchange rate of 573 CH$ per US$). In the manual of the Electoral Service it is not considered that candidates repay their fiscal advance if their electoral expenses - private donations received are smaller than the fiscal advance received. Fiscal funds can only cover expenses private donations did not cover, - what in practice may lead to the fact that candidates / parties do not declare all private donations received.

        No fiscal funds are considered for primary elections for candidates that compete in presidential, parliament or municipal elections (see law 20.640 on primary elections).

        Eligibility criteria are clearly defined.That means that all parties or candidates registered at the Electoral Service for the elections mentioned in the law are eligible to receive funding. Law 19.884 is regulating public and private finance of the fllowing elections (see article 1 of law 19.884): Law 18.700: constitutional law for presidential or parliament election; Law 18.695: constitutional law for municipal candidates.

        Law 19.884 also regulates fiscal funding of candidates for regional governmental councils; the respective law regulating this type of candidacy, Law 19.175 (constitutional law for regional government and administration), is not mentioned explicitly, but the law 19.884 mentions continuously that it covers also the finance for candidates for regional governmental councils (in Spanish: “consejos regionales”).

        Scoring Criteria

        A YES score is earned where: 1) direct public funding for political parties and individual candidates' electoral campaigns is allocated through a clearly defined calculation mechanism that is transparent and equitable, and 2) there are clearly defined eligibility criteria.

        A MODERATE score is earned where direct public funding for political party and individual candidates' electoral campaigns is allocated through a clearly defined calculation mechanism that is transparent and equitable, but eligibility criteria are not clearly defined.

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 13 - 15. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        II. Law 20.640 about primary elections for candidates that compete in presidential, parliament or municipal elections (in Spanish: “Ley 20.640 Establece el sistema de elecciones primarias para la nominación de candidatos a presidente de la república, parlamentarios y alcaldes”)
        Published in December 2012. http://www.leychile.cl/Navegar?idNorma=1046533

        III. Manual of the Electoral Service, regarding 2013 elections https://www.dropbox.com/s/aqztdt4za4pisbz/Manual%20Gasto%20Elecciones%202013.doc?dl=0

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        3
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        100
        In practice, to what extent is the mechanism to determine direct public funding for electoral campaigns transparent, equitable and consistently applied?More about indicator

        There are no reports on the exact amounts of public funding for the most recent national electoral campaign. In practice, no experts have any doubt on the equitability and transparency of the actual mechanism to calculate and distribute public funding to candidates and parties.

        Giorgio Jackson: “I never questioned the calculations of Electoral service, nor heard about any doubt about the mechanism”.

        Pablo Longueira, official candidate for presidency in 2013, ex minister, ex senator, says: “I never heard about a discrepancy between the assigned fiscal funding to a candidate and the formula established in the law. That does not mean that a discrepancy could never exist, but I think political parties and candidates are clear about the formula, as well as the Electoral Service.”

        Patricio Santamaría, President of the Directive Council of the Electoral Service says: "In fact, the Chilean Treasury calculates and completes the final payment with public funds. Before elections, the Electoral Service publishes only the exchange rate for the UF fixed in the formula given in law 19.884. After elections, we approve the accounts presented by the candidates and parties. On the other side, the Electoral Tribunal makes an announcement with the official votes received by any candidate and political party. With all this information, Treasury organizes the final repayment to candidates and parties. This happens as prescribed by law."


        Peer reviewer comment: Agree - In a study conducted for the IDB in 2009, interviewing candidates and campaign managers, they did not express doubts about the way the funding is allocated or how the information is delivered.

        Scoring Criteria

        A 100 score is earned where: 1) electoral campaigns allocations are always defined through a clearly defined transparent and equitable calculation mechanism, and 2) the defined eligibility criteria are applied consistently.

        A 50 score is earned where: 1) electoral campaign allocations are usually defined through a clearly defined transparent and equitable calculation mechanism but exceptions exist, or 2) the eligibility criteria are usually applied but exceptions exist.

        A 0 score is earned where: 1) political campaign allocations are rarely or never defined through a clearly defined transparent and equitable calculation mechanism, or 2) the defined eligibility criteria are rarely applied.

        Sources

        I. Interviews: Giorgio Jackson, elected member of parliament for Santiago centre, and ex president of the Student Federation of “Universidad Católica de Chile” (FEUC) 2010-2011, and ex spokesman of the Confederation of Students in de Chile (CONFECH). Interviewed August 7, 2014.

        Pablo Longueira, political leader during the last decade, official candidate for presidency in 2013, ex minister, ex senator. Interviewed August 4, 2014.

        Patricio Santamaría, President of the Directive Council of the Electoral Service. Interviewed August 14, 2014.

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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        50
        In practice, to what extent does the entity in charge of public funding make disbursement information publicly available?More about indicator

        Information on public funds paid to candidates and political parties is not complete, because citizens can only find information on the fiscal advance paid to candidates and political parties, often without the date of the pay out of funds, and without confirmation on the final payment made to candidates and parties. Citizens can only find information on the fiscal amount the candidates or parties are applying for. The fiscal advance paid is published together with the fiscal amounts the candidates are applying for, 15 working days after the presentation of the electoral accounts (accounts are presented 30 days after elections). The last parliament and presidential elections in Chile were on the 17th of November. Candidates pesented their acconts on 30 December of 2013, and the Electoral Service published the accounts on 11 Februrary.

        On the other side, regarding the presidential elections, published information in the excel document on the income of the candidates or their parties covers only the first electoral round. This is not expressed explicitly. In another section of the site of the Electoral Service ("documentos"), citizens can find information about how political parties financed the second round of presidential elections, again, specifying only the fiscal amounts for which the parties are applied. Additionally, information is not complete, because the fiscal amounts the candidates are applying for - not via the parties - is not published. Such information is only available via transparency requests any citizen can make to the Electoral Service (added as attachment in this section).

        Public funding received in practice by political parties can be accessed via transparency requests any citizen can make, as it is naturally "public information". In Chile, since 2009, law 20.285 – the called “law of transparency” regulates and enforces the right of any citizen to access public information. Information on spending of public funds is seen as “public”, - considering only few exceptions, expressed in article 21 of the cited law. In Chile, law 20.285 created a Transparency Council, as autonomous body that enforces the law, and helps citizens to get access on public information.

        In the sources list, you will find the answer of the Electoral Service, regarding a request of information on fiscal funds paid to political parties in 2012 (municipal elections) and in 2013 (presidential, parliament elections – and elections of members of the regional councils). As well, you will find attached the answer of the Electoral Service, regarding another request of information on fiscal funds paid to candidates in 2013 (covering the first round of presidential election, parliament elections – and elections of members of the regional councils), as well as another answer on a request of information, on fiscal funds requested for the second round of presidential elections.

        The information provided by the Electoral Service is incomplete. Additionally, the usability of information provided is very low, - for example, all income of all candidates of the last parliament and presidential election in 2013 is presented together in a single excel file without any filters. In the same way, the Electoral Service presents information on income of all political parties during these elections.

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales, says: “The way, the Electoral Service presents information is terrible. There are no consolidated numbers, for example. One has to do the calculations and sometimes numbers are not consistent.”


        Peer reviewer comment: Agree. In a study conducted for the IDB in 2009, officials in the Chilean Electoral Service were interviewed and asked questions about the modernization of the Electoral Service. The conclusion was that there are indeed weaknesses in the delivery of disbursement information.

        Scoring Criteria

        A 100 score is earned where: 1) complete information on the disbursements is published less than a month after disbursement, and 2) the information is available on the Internet for free or in hard copy at photocopying cost.

        A 50 score is earned where: 1) the information published is incomplete or published more than two months after disbursement, or 2) obtaining the information costs more than photocopying.

        A 0 score is earned where: 1) disbursement information is published more than four months after disbursement, or 2) no disbursement information is published or released upon request.

        Sources

        I. Information on income of candidates and political parties, provided by the Electoral Service in its website http://www.servel.cl/ss/site/ingresosygastosdepartidos.html http://www.servel.cl/ss/site/ingresosygastosdecandidatos.html

        II. Information via transparency requests made to the Electoral Service. Financing received by candidates, 2013 elections https://www.dropbox.com/s/mgsqbpqwy8ddcqe/Financiamiento%20fiscal%20candidatos%20elecciones%202013.xls?dl=0 Financing received by parties, 2003-2014 https://www.dropbox.com/s/flerb1ypi43qhve/Financiamiento%20Fiscal_Consulta%2073183.xlsx?dl=0

        III. Interview: Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales; interviewed August 1, 2014.

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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      Indirect Public Funding
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        5
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        YES
        In law, use of state resources in favor of or against political parties and individual candidates is prohibited.More about indicator

        Article 25 of law 19884 explicitly prohibits political parties and candidates from receiving direct or indirect funding from state institutions, state enterprises or institutions in which or the state or a state enterprise might have participation.

        As well, the same article prohibits enterprises that receive fiscal subsidies or any type of fiscal funds from the state from making electoral donations to political parties or candidates, if the received fiscal funds comprise at least 15% of the enterprise's income in the previous two years. The same prohibitions apply to enterprises that are providers of state institutions, or that give any type of service to the state, if the respective contracts represent more than 40% of the overall turnover of the year, or in the previous 2 years.

        As well, article 21 A of law 10.336 defines that the Chilean Supreme Audit Institution carries out audits that evaluate the correct application of the national budget law of any state institution or state enterprise. Additionally, this autonomous institution published a manual during the campaign phase in September 2013, clarifying the role of public employees, public infrastructure and public funds during elections. The Manuel defines clearly that the Administration of the State has to be politically neutral regarding electoral processes. The document starts listing basic principles that are reflected in the administrative jurisprudence for the public service:

        (i) Principle of legality (articles 6 and 7 of the political Constitution and articles 2,3,5 and 7 of law 18.575, regulating the General Bases of the State Administration): state employees have the obligation to promote the common good (article 1 of the political Constitution), and have to serve loyally and carefully, within their competence, to meet their responsibilities efficiently;

        (ii) Principle of probity (article 8 of the political Constitution): the exercise of public functions obliges to strictly comply with the principle of administrative probity in all its actions. According to article 52 of the law No. 18.575, that means an honest and loyal performance of state functions, with pre-eminence of the general interest over the individual one. That means, - explains the Manual - that state employees should act with the strictest impartiality, and without discrimination during all times. The Manual indicates that authorities who will organize events, ceremonies or official events, must ensure equality of treatment, in terms of opportunity, between political sectors, regarding especially candidates or parliamentary authorities in exercise. (iii) Principle of being non-political: article 19 of the aforementioned law 18.575, applicable to all institutions and services that integrate the administration of the State, indicates that state employees cannot realize any political activity within the Administration. Therefore, public servants cannot do political activities, nor use their jobs to favour or prejudice any candidacy or political party. Similarly, article 62 of law 18.575 applies to all public bodies, and warns that it contravenes especially administrative probity when public employees use hours of their working day or staff or any type of resources of the organism for their own benefit or for purposes other than the institutional ones.

        The same idea is reflected in article 84 of law 18.834 (administrative basis for state employees), which expressly prohibits any political activity within the State administration – and in article 82 of law 18.883, which approves the administrative basis for municipal officials. In that sense, so the Manual, state employees can't proselytise nor do propaganda, nor promote or participate in campaigns. During their working hours, they cannot attend meetings or proclamations for such purposes, and they are prohibited to associate the activity of their state organism with determined political candidacy; State employees cannot intimidate, threaten, or coerce any other employee for political purpose. Based on these arguments, so the Manual of the Supreme Audit Institution, it is forbidden to use for political purposes any public funds, public goods or fiscal properties.

        There are special prohibitions the law provides for certain services, such as, the staff employed by the Electoral Service (article 71 of law 18.556): nor the staff of the Service, nor any person who in any capacity, play some role in it, may be part of a political party or participate in or join meetings, demonstrations, assemblies, publications or any other act that can be characterized as political event or as support of any candidate that is competing in popular elections.

        Scoring Criteria

        A YES score is earned where there is an explicit ban on the use of state resources in favor of or against political parties and individual candidates. A YES is also earned where there are clearly defined exceptions, which are accessible to all actors equally.

        A MODERATE score is earned where an explicit ban exists but it only applies to one of the two actors, even though both can be elected. A NO score is earned where no such law exists.

        A NO score is also earned where the law exists, but allows discretionary exceptions.

        Sources

        I. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Article 25. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        II. Law 10.336 about organization and attributions of the National Supreme Audit Institution. (in Spanish: “Ley 10.336 de Organización y Atribuciones de la Contraloría General de la República"). Article 21 A. Published in July 1964 (article 21 A was actualized in 2002) http://www.contraloria.cl/NewPortal2/portal2/ShowProperty/BEA%20Repository/portalCGR/Documentos/DocumentosdeInteres/DOI01LEY_N10336

        III. Instructions form the Chilean Supreme Audit Institution. Published in 2003. http://www.contraloria.cl/NewPortal2/portal2/ShowProperty/BEA+Repository/Portal/Informacion/Elecciones2013/Instructivo.pdf

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        75
        In practice, to what extent are no state resources used in favor of or against political parties and individual candidates' electoral campaigns?More about indicator

        Interview sources aver that, from time to time, state resources are used in favor of certain parties and candidates. Firm, documented evidence proving such allegations, however, is rare.

        Indeed, before and during the campaign period, the press is continuously publishing accusations of electoral interventionism made by public employees. For example, opposition parties decried the use of state resources by presidential candidates during the 2013 campaign (see sources). However, the National Supreme Audit Institution publishes not only (ex ante) specific and clear instructions to prevent any use of state resources to influence the campaign, but also publishes in a very clear way all legal opinions given and any audit made during or before campaign period, answering (ex post) all accusations made, regarding electoral interventionism. Based on its conclusions, no documented evidence exists to definitively indicate that state resources were in fact used in the most recent campaign.

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei in 2013 says: “But especially before the official campaign phase, my experience is that the State can obviously influence elections, in several ways, through the use of public resources in support of the governing party.

        For example, in practice there is certain influence by ceremonies and inaugurations. That happens a lot, because governments tend to focus it prior to any elections (both local as the parliamentary and presidential). Who will be invited and appear in the press, in this inaugurations? The authority will invite both sides, of cause, but maybe will send the invitation to the person who is not of the same party the night before, so that he / she can´t reach to go. ¿Who is on the side or back when authorities cut the ribbon, when they are opening a ceremony? I see that parties that are not part of the government tend to complain, - and sometimes with certain reason, because ceremonies and inaugurations have their impact in the media. Although it may be an excessive regulation, this could be a reason to prohibit openings of the President or other higher authorities some time before elections. All these things in Chile are not regulated and perhaps we have to think more about it. Another practice, definitely wrong, is that sometimes governments use public money to make certain people earn certain projects through bidding systems, but these projects in reality are nothing and just help to finance an political activity. More transparency is missing there, - also regarding the employment of staff with public funds.”

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet says (as a natural person, - not representing an official opinion): “There is an increasing awareness of the press to monitor and to uncover electoral interventionism. Also, I see an increasingly trend of citizens to accuse unethical practices, via press. That a Government uses fiscal funds to influence in campaigns is each day more accused and therefore each day it is more difficult to use fiscal funds and fiscal properties for electoral reasons. I think in Chile we developed - in that sense. I say this with experience in two presidential campaigns, the first one, being part of the governmental coalition in the campaign of Eduardo Frei in 2009, and than, being part of the opposition in the campaign of Michelle Bachelet in 2013."

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales, says: “In the final year of Government, there is a normally a planning of resources at the regional level and province level, with the intention to show concrete results of governmental management and to associate them in with the political campaign. What happens is that there is a high coordination (or competition, depending on which party is concerned), among the assigned regional Ministers (in Spanish: Intendentes), the regional Secretaries of Ministries, and the regional electoral campaign. For example, if the regional Minister is Socialist he will support certain candidates who are Socialists as well, and that means a support in terms of inaugurations. Regional funds are high and they tend to finance initiatives that will be made public via public ceremonies often linked to the election campaign. Actually, there is no regulation regarding public ceremonies during the time previous to the electoral campaign Also, public presentation of fiscal funds is orientated on the budget law, - and does not reveal easily were fiscal funds are invested. You must think as well that candidates play often a role as broker between citizens and government. They ask people about their problems, and will try to solve them - for example with the municipality or with a Ministry, and will try to access to subsidies, and that sort of things."

        Pablo Longueira, official candidate for presidency in 2013, ex minister, ex senator, says: "During a municipal election, the municipal team tends to go on working for the mayor, in the shadow. That is a reality, because if the Mayor loses, much of the employees of the municipality see threatened their employment. In other elections, it also happens that a mayor might throw away your propaganda and leaves that of its political sector..."


        Peer reviewer comment: Agree. In the study mentioned below, campaign chiefs interviewed indicated that incumbent candidates make use of public resources for campaigning.

        Scoring Criteria

        A 100 score is earned where there is no evidence of authorities using state resources in favor of or against political parties and individual candidates. A 100 is also earned where there are clearly defined exceptions and are equally accessible to all actors.

        A 50 score is earned where: 1) documented evidence indicates occasional use of state resources in favor of or against political parties and individual candidates, or 2) clearly defined exceptions are not equally accessible to all actors.

        A 0 score is earned where documented evidence indicates regular use of state resources in favor of or against certain political parties and individual candidates.

        Sources

        I. Website of the Supreme Audit Institution, list of Conclusions after Investigations of Accusations of the Use of State Resources during the 2013 Campaign. Published in 2013. http://www.contraloria.cl/NewPortal2/portal2/ShowProperty/BEA+Repository/Portal/Informacion/Elecciones2013/elecciones2013.html

        II. Interviews: Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei in 2013; interviewd July 30, 2014.

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet (as natural person, - not representing an official opinión); interviewed July 29, 2014.

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales; interviewed August 1, 2014.

        Pablo Longueira, official candidate for presidency in 2013, ex minister, ex senator; interviewed August 4, 2014.

        III. News report: "Opposition Members of Parliament Denounce Electoral Intervention." CNN Chile. June 17, 2013.
        http://cnnchile.com/noticia/2013/06/17/parlamentarios-de-oposicion-denunciaron-intervencion-electoral

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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        YES
        In law, political parties and individual candidates have free or subsidized access to equitable air time for electoral campaigns?More about indicator

        Article 31 of Law 18.700 regulates free access to air time in television for Candidates for the Presidency and Parliament. No subsidized access to radio broadcasts is provided by law.

        30 days before elections, until three days before elections, Candidates for the Presidency and Parliament, get 30 minutes of air time daily in free TV channels. When elections for the Presidency and Parliament are at the same time, all free TV channels have to give 40 minutes free airtime daily: 20 minutes that must be divided equally for all the official candidates for the Presidency, and 20 minutes for parliament candidates. In the last case, each political party will get a proportional time according to the vote obtained in the last parliament election (elección de diputados), and will distribute that time as it sees fit. If the party did not compete in the previous election, it will get the same air time as the party with the fewest votes obtained in the previous election. All parliament candidates that compete independent of any political party will receive and share air time equal to that of the party with the fewest votes obtained in the previous election.

        Article 31 defines the procedure to appeal in front of the National Court of Elections, if any candidate or political party does not agree with the air time calculation made.

        Eligibility criteria: The same law 18.700 defines clear criteria for the official inscription of Presidential and Parliament Candidates. Once officially formalised by the Electoral Service, candidates or parties automatically will be considered for air-time on national television.

        Scoring Criteria

        A YES score is earned where: 1) free or subsidized access to air time for electoral campaigns is granted in a transparent, equitable way, and 2) there are clearly defined eligibility criteria.

        A MODERATE score is earned where free or subsidized access to air time for electoral campaigns is granted in a transparent, equitable way, but eligibility criteria are not clearly defined.

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.700 about popular elections (in Spanish: “Ley Nº 18.700 de Votaciones Populares y Escrutinios”). Article 31. Published in May 1988 and modified (regarding article 31) in 1989. http://www.leychile.cl/Navegar?idNorma=30185

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        8
        Score
        100
        In practice, to what extent is free or subsidized access to air time provided in a transparent, equitable way to political parties and individual candidates for electoral campaigns?More about indicator

        Sources confirm that the free access to air time prescribed by the law (which covers only TV broadcasts) is provided transparently, and the eligibility criteria are consistently applied.

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei in 2013 says: “The air time in free television is clearly regulated and is equitable / proportional to presidential candidates / political parties. There are alternating air times, drawing of lots… at the end, it is impossible that a candidate will be favoured more than another by any manipulation. In the case of the presidential candidates I want to mention that there is a problem, I think, because the airtime as it is designed gives the same minutes to each presidential candidate, independent of any representation. And that causes a problem, because it has become an excessive subsidy for weak candidates. Actually, Chile adopted the formula that candidates are allowed to buy advertisements in radios and in newspapers, but not on television. There, you have only free airtime and you can´t purchase it either. I think, there is missing more debate whether airtime should be able to be purchased as well. It is, at least, a subject to discuss in the future."

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet says (as natural person, - not representing an official opinion): “Electoral air times in television work well and transparently. In my opinion, they don't have much gravitation. More important is that the press in general over-presents minority candidates. In practice, the law rewards new candidates, - that is okay. But there was exaggeration in this regard. There were several candidates with excessive exposure, without real support of citizens. In the last presidential election, we all had to see debates, with 9 candidates…I think this should be regulated differently.”

        As said, only airtime in television is free. Air time in radios must be paid in Chile.

        Regarding this, Luis Pardo, President of the Association for Radios in Chile (ARCHI), says: "In Chile, the law allows electoral advertising in radios one month before the election. Under "electoral propaganda" the law understands that type of propaganda which induces to vote. Therefore, the law does not prevent that before the official begining of the campaign, there could be published indirect propaganda in radios as well - which can also be conducive to an electoral result. In any case, I think additional controlling could cause more distortions than benefits. In our country there are so many radios of diverse size. There is no ability to manipulate an election outcome via a radio. I think that the standard may appear insufficient, but it is ok. Also, the law prohibits the radios to discriminate in pricing they give to candidates or parties. In fact, I do not know any case of price discrimination in any radio during a political campaign. This would be known too, I think, because political campaigns are highly competitive. You should know that the "political price rate" for campaigns is a maximum rate without discounts - more important even for small radios that are important as well during the electoral campaign. For example, there are radios in small towns, with 10,000 inhabitants that year-round won´t sell not a single commercial of a major brand, but they will sell advertising to the parliament campaign. Prices are full prices.

        Regarding the candidates as buyers of radio spots, I do not see inequality in the access to radio propaganda. The Electoral Service rewards candidates for the votes they receive. A candidate who needs to hire a radio is going to hire according to the votes he calculates to get. I think that there is realism in that. I admit, that maybe there could be in future some kind of self-regulation in radios, to prevent that prices will soar excessively. Another point to mention is that the Telecommunications Act regulates the property of radios. In fact, there are parliamentarians who are linked to property of radios. Just today there was a vote in the Senate, concerning radios, in which two parliamentarians auto-disabled themselves from voting, regarding their family connections to small radios. There might be more owners of radios that are linked to the politics. But the press law requires making transparent the responsible director and the owners of telecommunication media. The sub-secretary of the Telecommunication Ministry publishes this information in an excel file. Perhaps no one knows that this information exists in this place…”

        Giorgio Jackson, elected member of parliament fo Santiago center, and ex president of the Student Federation of “Universidad Católica de Chile” (FEUC) 2010-2011, and spokesman of the Confederation of Students in de Chile (CONFECH), says: “For the (2013) campaign, we bought airtime on the radio for electoral propaganda. Nevertheless, I think they should be free of charge for candidates, - for example proportionally to previous electoral support, at least in part. The same reasons that are the basis for free airtime in television during electoral campaign should be the basis to establish free airtime in radios for candidates. In the case of the radio, its role in election campaigns is sensitive. For example, in Chile we have rural communes that have only one or two radio stations with coverage there. These stations have (political) influence - through interviews they are running, for example, - not only through the official electoral propaganda. This is less obvious and difficult to audit. Therefore, it will be good to know better the connections between ownership of radio stations or local television stations and members of parliament, for example.”

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales, says: “One of the major items of expenditure of candidates is advertising in radio, which is not covered by the law. Prices of radio propaganda during election time rise a lot. In my opinion, it should be free. That's much more just because everyone would have the same access to radio. Today only those with resources have access to radio.


        Peer reviewer comment: Agree. In practice there are no problems in the allocation of time, candidates feel that the system is clear and transparent and there have been no allegations of misuse.

        Scoring Criteria

        A 100 score is earned where: 1) free or subsidized access to media advertising is always provided in a transparent and equitable way, and 2) the defined eligibility criteria are applied consistently.

        A 50 score is earned where: 1) free or subsidized access to media advertising is usually provided in a transparent and equitable way, but exceptions exist, or 2) the eligibility criteria are not always applied.

        A 0 score is earned where: 1) there's rarely free or subsidized access to air time for political campaign, and 2) access exists but is not provided in a transparent, equitable way.

        Sources

        I. Interviews: Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei in 2013; interviewd July 30, 2014.

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet (as natural person, - not representing an official opinión); interviewed July 29, 2014.

        Luis Pardo, President of the Association for Radios in Chile (ARCHI); interviewed August 5, 2014.

        Giorgio Jackson, elected member of parliament fo Santiago center, and ex president of the Student Federation of “Universidad Católica de Chile” (FEUC) 2010-2011, and ex spokesman of the Confederation of Students in de Chile (CONFECH); interviewed August 7, 2014.

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales; interviewed August 1, 2014.

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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    Contribution and Expenditure Restrictions

    More about category
    composite
    81
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      General Rules on Electoral Campaign Contributions
      More about category
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        9
        Score
        MODERATE
        In law, cash contributions are banned.More about indicator

        Law 18.884 about transparency, limits and control of electoral expenses permits that all types of private donations to political parties and candidates can be paid as cash contributions up to a certain limit.

        I) Anonymous donations can be received “in money” (in Spanish: “en dinero”) up to 20 UF per donor (by 3rd of august 20 UF = CH$ 481.280 = US$ 840, considering an exchange rate of 573 CH$ per US$), and up to 20% of the fixed maximum of electoral expenses. These donations can be in cash. It should be mentioned that not even the Electoral Service knows the identity of the "anonymous donors", and has no way to make sure that these donations were paid effectively by the number of persons the parties or candidates declare.

        II) In Chile, parties and candidates can receive up to 10% of the fixed maximum of electoral expenses as “reserved donations”, that can be paid entirely in cash to the Electoral Service (in Spanish: donaciones reservados), with fixed maximum amounts per donation (see article 18 of law 19.884): 1) Direct donations to a Presidential Candidate = 1.500 UF = CH$ 34.373.370 = US$ 59.988* 2) Direct donations to a Candidate for Senator = 800 UF = CH$ 18.332.464 = US$ 31.994* 3) Direct donations to a Candidate for Congressman (diputado) = 800 UF = CH$ 18.332.464 = US$ 31.994* 4) Direct donations to a Candidate for Mayor or for Regional Council = 600 UF = CH$ 13.749.348 = US$ 23.995* 5) Direct donations to a political party = 3.000 UF = $68.746.740 = US$ 119.977* * = considering an exchange rate of 573 CH$ per US$.

        These reserved donations can be paid by natural persons, by private enterprises or political parties to the Electoral Service (in cash or with documents), specifying to which candidate or party the amount should be redirected. The Electoral Service will fragment these donations and pay them once a week to the respective candidates or party. The maximum amount refers to donations made by “one person”. It should be mentioned, that there is no control whether a person is exceeding the limit, if he / she is using different private enterprises as vehicle, for example.

        III) All other contributions made by natural persons, private enterprises or political parties to candidates or parties are seen as “private donations with public character” (article 20 of law 19.884). They can be realised as cash contribution, as well. The Electoral Service will publish the names of the donors, in its web site.

        Scoring Criteria

        A YES score is earned where cash contributions are banned and all financial contributions must be made via the banking system.

        A MODERATE score is earned where cash contributions are allowed up to a maximum limit, regardless of the limit.

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 17. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

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        10
        Score
        NO
        In law, there is a ban on anonymous contributions.More about indicator

        The maximum amount for anonymous donations is 20 UF = 481.280 CH$, or 840 US$ per donor (exchange rate: 573 Chilean Pesos per USD). Parties and candidates can receive as anonymous donations up to 20% of the officially fixed maximum for electoral expenses.

        Anonymous donations can be received by parties and by candidates.

        Scoring Criteria

        A YES score is earned where the law stipulates that anonymous contributions are banned.

        A MODERATE score is earned where the ban exists, but it applies only to one actor (whether political parties or individual candidates). A MODERATE score is also earned where small anonymous donations are allowed up to a maximum threshold equal to or less than the equivalent to US$300.

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 17. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

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        11
        Score
        YES
        In law, in-kind donations to political parties and individual candidates must be reported.More about indicator

        In Chile, all in-kind donations to political parties and individual candidates must be reported to the Electoral Service. Article 8º of law 19.884 defines that “private finance” of electoral campaigns include any contribution in money or estimable in money to a candidate or political party.

        Furthermore, article 40 of law 19.884 specifies that electoral administrators must register any contribution of goods or services, with the respective value.

        Scoring Criteria

        A YES score is earned where all in-kind donations must be reported to the oversight authority.

        A MODERATE score is also earned if the requirement to report such information exists, but applies only to one actor (whether political parties or individual candidates).

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 8 and 40. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

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        12
        Score
        YES
        In law, loans to political parties and individual candidates must be reported.More about indicator

        Loans to political parties and individual candidates must be reported to the Electoral Service.

        Article 40 of law 19.884 specifies that electoral administrators must register any contribution received that is used to pay electoral expenses. Although not mentioned explicitly, this includes loans. Furthermore, in the Manual for 2013 Elections, the Electoral Service specifies that the income statement of political parties and candidates must precise all amounts received, defining an accounting system, that mentions explicitly (i) loans received and (ii) interest paid for these loans (see page 38 and 39 of the mentioned Manual).


        Peer reviewer comment: Agree - Loans to political parties and individual candidates must be reported to the Electoral Service.

        Scoring Criteria

        A YES score is earned where all loans must be reported to the oversight authority.

        A MODERATE score is earned where loans must be reported, but the requirement applies only to one actor (whether political parties or individual candidates).

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Article 40. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        II. Manual of the Electoral Service, regarding 2013 elections https://www.dropbox.com/s/aqztdt4za4pisbz/Manual%20Gasto%20Elecciones%202013.doc?dl=0

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      Limits on Contributions and Expenditures during Electoral Campaign Periods
      More about category
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        13
        Score
        YES
        In law, contributions from individuals are limited to a maximum amount.More about indicator

        Article 9 of law 19.884 , establishes the maximum amounts one private donor can give to one candidate or to one party or to several candidates, in the same election. The law makes no distinction between enterprises or natural persons as private donor (see page 10 of the manual the Electoral Service published for 2013, attached). Maximum amounts are expressed in UF – a financial unit in Chile, free of inflation. For each election, the Electoral Service publishes the exact maximum amounts in Chilean Pesos, donors can give to each candidate. The limits for 2013 were (see manual for 2013 elections, published by the Electoral Service, attached):

        • 2.000 UF for a presidential candidate = CH$ 45.831.160 = US$ 79.985 • 1.250 UF for a parliament candidate = Ch$ 28.644.475 = US$ 49.990 • 1.000 UF for a candidate for the regional council = Ch$ 22.915.580 = US$ 39.992 • 10.000 UF for one political party = CH$ 229.155.800 = US$ 399.923 • 10.000 UF for several candidates = Ch$ 229.155.800 = US$ 399.923

        Scoring Criteria

        A YES score is earned where: 1) individuals may not contribute more than a maximum amount established by the law.

        A MODERATE score is earned where a maximum amount exists, but it applies only to contributions for one actor (whether political parties or individual candidates). A MODERATE score is also earned where individuals are forbidden from making any contribution.

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 9-12. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        II. Manual of the Electoral Service, regarding 2013 elections https://www.dropbox.com/s/aqztdt4za4pisbz/Manual%20Gasto%20Elecciones%202013.doc?dl=0

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        14
        Score
        YES
        In law, contributions from corporations are limited to a maximum amount.More about indicator

        Article 9 of law 19.884 , establishes the maximum amounts one private donor can give to one candidate or to one party or to several candidates, in the same election. The law makes no distinction between enterprises or natural persons as private donor (see page 10 of the manual the Electoral Service published for 2013, attached). Maximum amounts are expressed in UF – a financial unit in Chile, free of inflation. For each election, the Electoral Service publishes the exact maximum amounts donors can give to each candidate. The limits for 2013 were (see manual for 2013 elections, published by the Electoral Service, attached):

        • 2.000 UF for a presidential candidate = CH$ 45.831.160 = US$ 79.985 • 1.250 UF for a parliament candidate = Ch$ 28.644.475 = US$ 49.990 • 1.000 UF for a candidate for the regional council = Ch$ 22.915.580 = US$ 39.992 • 10.000 UF for one political party = CH$ 229.155.800 = US$ 399.923 • 10.000 UF for several candidates = Ch$ 229.155.800 = US$ 399.923

        It should be mentioned, that limits refer to identity numbers each enterprise has (in Chile they are called "RUT"); the actual regulation does not consider any consolidation of property behind the respective enterprises.

        Scoring Criteria

        A YES score is earned where: 1) corporations may not contribute more than a maximum amount established by the law.

        A MODERATE score is earned where a maximum amount or ban exists, but it applies only to contributions for one actor (whether political parties or individual candidates). A MODERATE score is also earned where corporations are forbidden from making any contribution.

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 8-12. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        II. Manual of the Electoral Service, regarding 2013 elections https://www.dropbox.com/s/aqztdt4za4pisbz/Manual%20Gasto%20Elecciones%202013.doc?dl=0

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        15
        Score
        YES
        In law, contributions from foreign sources are banned.More about indicator

        Article 24 of law 19.884 prohibits contributions from foreign donors for any electoral campaign (no matter if they are natural persons, enterprises, or non for profit organizations). Exception are natural persons that live in Chile and have the civil rights to vote in Chile.

        Contributions from foreign sources are also banned via article 30 of law 18.700.

        Scoring Criteria

        A YES score is earned where it is forbidden for political parties and individual candidates to receive contributions (financial or in-kind) from foreign sources.

        A MODERATE score is earned where: 1) the ban exists but it applies only to one actor (whether political parties or individual candidates), or 2) contributions from foreign sources are allowed to a maximum amount.

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Article 24. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        II. Law 18.700 about popular elections (in Spanish: “Ley Nº 18.700 de Votaciones Populares y Escrutinios”). Article 30. Published in May 1988 and modified (regarding article 31) in 1989. http://www.leychile.cl/Navegar?idNorma=30185

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        16
        Score
        YES
        In law, contributions from third-party actors (unions, foundations, think tanks, political action committees, etc.) are limited to a maximum amount or banned.More about indicator

        In Chile, contributions from third-party actors are banned explicitly, in article 26 of law 19.884.

        No non-profit institution is allowed to make donations to electoral campaigns. The only exception are political parties themselves.

        Scoring Criteria

        A YES score is earned where: 1) third-party actors may not contribute more than a maximum amount established by the law, or 2) are forbidden from making any contribution.

        A MODERATE score is earned where: 1) the maximum amount or ban exists only for the majority of third-party actors, but not all, or 2) the maximum amount or ban exists, but applies only to contributions for either political parties or individual candidates.

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Article 26. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

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        17
        Score
        YES
        In law, election campaign spending by political parties and individual candidates is limited to a maximum amount.More about indicator

        In Chile, election campaign spending by political parties and individual candidates is limited to a maximum amount, defined in articles 4 and 5 of law 19.884. For all elections – presidential, parliament or municipal elections, as well as for elections of the regional councils, at least a part of the calculation of the maximum amount candidates and political parties can spend in their campaign refers to the number of voters in the respective electoral zone, multiplied by an amount fixed in UF – a financial unit in Chile, free of inflation. For each election, the Electoral Service publishes the exact maximum amounts in Chilean Pesos for each electoral zone (attached you can find this information in the manual for 2013 elections, published by the Electoral Service).

        For example, in the last presidential election, election campaign spending was limited to Ch$ 9.231.315.685 = US$ 16.110.499 considering an exchange rate of 573 CH$ per US$.

        Scoring Criteria

        A YES score is earned where it is forbidden for political parties and individual candidates to spend more than a certain amount in a political campaign.

        A MODERATE score is earned where the maximum amount exists, but it applies only to one actor (whether political parties or individual candidates).

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 4-5. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        II. Manual of the Electoral Service, regarding 2013 elections https://www.dropbox.com/s/aqztdt4za4pisbz/Manual%20Gasto%20Elecciones%202013.doc?dl=0

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        18
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        Open Question: Do the national laws regulating political finance also apply to sub-national units? If not, to what extent do sub-national units have laws regulating political finance?More about indicator

        Law 19.884 regulates fiscal and private donations to political parties and candidates that compete in presidential, parliamentary, and municipal elections, and in elections of members of the regional councils.

        Nevertheless, in practice, audits and controls in municipal elections carried out even less frequently than those in national elections.

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago, says:

        “The rules for municipal elections are the same, but I think that there is less control because there are many candidates, many parties, very long lists. Now, in Chile we also can elect the Regional Councils. It is time to analyse how to foster the institution of the Electoral Service... It needs modernization, new equipment, more people, more resources. The Service has not the capacity to oversee in reality. They analyse the accounts – yes, and for the first time in Chile, played a more active role regarding the accounts of the presidential campaign - rejecting some type of expenses and auditing more in detail. But this is a truth for the presidential campaigns. In my opinion, it has not the ability to do the same for regional or municipal elections. There are the same rules, but less surveillance in fact, and also less monitoring of citizens and newspapers – it is like a vacuum. On the other side, you must think that there is a world of influences within the mayors on a municipal level, because obviously they have mini-Governments and are mini Chairmen of their communities There is much more discretion. If I would be a mayor, who wants to support who can be my successor obviously there is much less transparency than at the national level. In practice, this scheme is less regulated.”

        Other persons interviewed (Giorgio Jackson, Giorgio Martelli and Claudio Fuentes) concurred that the Electoral Service is unfortunately still a weak institution in Chile, and in practice even weaker on a municipal level. But laws are the same.


        Peer reviewer comment: Agree - In Chile Law No. 19,884 establishes a funding bill that is general to both national and subnational levels. A study conducted in 2009, one of the fundamental problems have to do with expenditure control both nationally and locally, as the service does not control costs electoral field. Locally there arises practices related to political patronage and buying votes in exchange for payment for services or purchasing products.

        Scoring Criteria

        Please describe the applicability of national political finance regulations at the sub-national level, being sure to answer: 1) whether national laws are applicable to sub-national campaigns; 2) if not, to what extent do sub-national units have similar laws regulating political finance; and 3) whether there are any reports of problems arising from gaps in this framework.

        Sources

        I. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Article 1. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        II. Interviews: Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago; interviewed July 30.

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet (as natural person, - not representing an official opinion); interviewed July 29, 2014.

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales; interviewed August 1, 2014.

        Giorgio Jackson, elected member of parliament for Santiago centre, and ex president of the Student Federation of “Universidad Católica de Chile” (FEUC) 2010-2011, and ex spokesman of the Confederation of Students in de Chile (CONFECH), interviewed August 7, 2014.

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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        19
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        Open Question: What are the predominant sources of funding for electoral campaigns?More about indicator

        The sources of funding for electoral campaigns in Chile vary regarding the type of election.

        In 2013, Chile had presidential elections (9 candidates for 1 seat), elections for Senate (67 candidates for 20 seats) and elections for the Parliament (in Spanish: “Cámara de Diputados” = 470 candidates for 120 seats), as well as elections for the Regional Councils (1382 candidates for 278 seats).

        Officially published information by the Electoral Service on funding of these elections is not yet current In fact, the amount of the final repayment with fiscal funds to candidates and political parties is not published yet as part of the information on income of candidates and parties. The official excel document shows only bills that are pending – and that are expected to be financed by the Electoral Service, - as well as credits with amounts candidates should expect to repay with fiscal funds. It should be mentioned that, in its documents, the Electoral Service makes no distinctions between donations made by individuals and enterprises. This information is not available not even by transparency request.

        As political parties and candidates can receive private and public funding, and candidates can receive donations from parties as well (without declaring the identity of the donor up to certain limits), it is impossible todiscover the amount of contributions citizens and enterprises will have made to candidates and political parties.

        On average, the majority of contributions from enterprises and citizens, goes directly to candidates. Political parties will capture donations to strengthen candidates that cannot attract donations on their own.

        Working with an exchange rate of CH$ 573 per US$, candidates for Parliament declared an average income of US$ 52.362 for their campaign, candidates for Senate declared an average income of US$ 289.862, and candidates for Presidency an average income of US$ $ 2.060.022.

        The most important contributions to candidates came from private actors:

        On average, 62% of funding for Candidates for Parliament was made by private contributions (natural persons, enterprises or political parties). 72 % of this private funding was realized as reserved donation or anonymous donation, - that means, without revealing the identity of the donor. In detail, the sources of this type of funding were: = In- kind contributions: 4% of all funding received; = Donations (anonymous): 3% of all funding received; = Donations (public): 1% of all funding received; = Donations (public by parties): 12% of all funding received; = Donations (reserved): 41% of all funding received.

        Only 4% of total funding for the campaigns of Candidates for Parliament came from own sources, 5% by credits taken (to pre-finance the fiscal repayment expected), and 29% by the fiscal advance, and the fiscal repayment already applied for.

        On average, 67% of funding for Candidates for Senate was made by private contributions from natural persons, political parties and enterprises. 87 % of this private funding was realized as reserved donation or anonymous donation, without revealing identity of the donor. In detail, the sources of this type of funding were: = In- kind contributions: 3% of all funding received; = Donations (anonymous): 3% of all funding received; = Donations (public): 1% of all funding received; = Donations (public by parties): 5% of all funding received; = Donations (reserved): 55% of all funding received.

        Only 3% of total funding for the campaigns of Candidates for Senate came from own sources, 11% by credits taken (to pre-finance the fiscal repayment expected), and 19% by the fiscal advance, and the fiscal repayment already applied for.

        On average, 55% of funding for Candidates for Presidency was made by private contributions from natural persons, political parties and enterprises. 82 % of this private funding was realized as reserved donation or anonymous donation, without revealing identity of the donor. In detail, the sources of this type of funding were: = In- kind contributions: 0% of all funding received; = Donations (anonymous): 8% of all funding received; = Donations (public): 0% of all funding received; = Donations (public by parties): 9% of all funding received; = Donations (reserved): 37% of all funding received.

        Only 0,1% of total funding for the campaigns of Candidates for Pesidency came from own sources, 42% by credits taken (to pre-finance the fiscal repayment expected), and 19% by the fiscal advance, and the fiscal repayment already applied for.

        In summary, and on average, anonymous private donations are the most important source of finance. As explained on indicator 9, these donations are paid by natural persons, by private enterprises or political parties to the Electoral Service (in cash or with documents), specifying to which candidate or party the amount should be redirected. The Electoral Service will fragment these donations and pay them once a week to the respective candidates or party.

        It should be mentioned that in practice, there is a problem with spending limits for this kind of donation, because they are very high. In fact, the law regulating this kind of donation refers the limit to a high theoretical maximum of electoral expenses (10% of this maximum), and not to the real expenses made by parties and candidates (article 4 of law 19.884).

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet says (as natural person, - not representing an official opinion): "Obviously I have no doubt who were the donors for the presidential campaign (2013), although donations came in as reserved donations.”

        Giorgio Jackson, elected member of parliament fo Santiago center, and ex president of the Student Federation of “Universidad Católica de Chile” (FEUC) 2010-2011, and ex spokesman of the Confederation of Students in Chile (CONFECH), says: “Reserved and anonymous donations limits are too high. In the case of anonymous donations you can´t know how many people actually donated. In my campaign, we published all donations, with names, dates and amounts, and from March on – even before the campaign began (August). To change the anonymity of donations, we must show citizens how destructive it is to our democracy when a few persons control policy via funding. Another problem of financing campaigns in Chile is that despite the advance given with public funds to candidates, a person who has no income or capital, won´t hardly launch a campaign because he or she has no access to credit. A credit of consumption of CH$ 20 million (US$ 35.000) is not easy available. If you do not have a stable income, even against the best opinion poll, no bank will give you easy any credit. For my campaign, I had to take a loan. I went to eight banks and finally, one of them gave me a credit because as guarantee, I took my mother's house.”

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago, says on this: “The judicialisation of projects, the number of permits and regulations you have to get to start a project, all this moves companies to support politics at a local level – where projects are to be planned. They finance political capital of any political tendency, rather than defending political ideas en general. I am worried about this.”

        In theory, political parties can have other methods of generating campaign funds, owning their own businesses or trusts. Nevertheless, this should not be seen as sufficient to finance or even co-finance campaigns. Parties do not receive permanent fiscal finance during the year, and in general are under-financed. In financial terms, the best situated political party in Chile is the Socialist Party – regarding the information published in its official balance sheets (2012). They show financial assets of more than US$ 10 million, and real estate investments valued at US$ 2,5 million. Monthly income from financial investments is around US$ 45.000 (2012). This is an exception, nevertheless – and the result of a historical compensation paid to the party, for expropriations made during the military /dictatorial regime Chile had from 1973 on.

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago, says – regarding this: “I've not been in the direct management of a political party, but I know that there is a problem regarding the lack of permanent financing. That is something unpopular, but I think each day there is more agreement that we must move forward. The lack of transparency in political parties has to do with the fact that parties are very precariously situated financially. In fact, by their financial power, they are like SMEs. Although they have a great influence on society, administratively they are SMEs.”

        Regarding lack of in-practice-auditing of electoral expenses, and regarding weak sanctions fixed by the law, it should be mentioned as well that it is very probable that not all funding candidates or parties receive is declared. For example, the law that regulates fiscal and private funding for campaigns, law 19.884, states that public funding can only finance what private funding hasn´t financed yet. Candidates will always calculate how much public funding they should receive, - and search for donations that cover the difference. Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales, says: “In fact, there is an incentive to darken funds, because if I receive more private funds than this difference I have to finance, I will receive less public money.”


        Peer reviewer comment: Agree - I would add that in the 2009 study, after analyzing the accountabilities of candidates and parties, in order of importance the major contributions that are made to political parties come from: aside donations, public contributions and own contributions. In the case of candidates the main contributions come from: private donations, public contributions and own financing.

        Scoring Criteria

        Please describe the important sources of funding for electoral campaigns, being sure to answer: 1) where does the preponderance of funding come from - public, individual, corporate, or other; 2) to what extent do individual candidates self-finance; and 3) do political parties have other methods of generating campaign funds, such as owning their own businesses or trusts.

        Sources

        I. Excel document published by the Electoral Service on income received by candidates in 2013 elections https://www.dropbox.com/s/2du1zmvdx4rr056/DetalleIngresosPresidencialParlamentariasCORE.xls?dl=0

        II. Interviews: Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago; interviewed July 30, 2014.

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet (as natural person, - not representing an official opinion); interviewed July 29, 2014.

        Giorgio Jackson, elected member of parliament for Santiago centre, and ex president of the Student Federation of “Universidad Católica de Chile” (FEUC) 2010-2011, and ex spokesman of the Confederation of Students in de Chile (CONFECH), interviewed August 7, 2014.

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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        20
        Score
        --
        Open Question: Have there been documented instances of violations of contribution or expenditure limits or any of the laws mentioned above (Section 2)?More about indicator

        In Chile, during 2013, there have there been documented instances of violations of law 18.700 (Constitutional Law for Presidential or Parliament elections). Article 13 of the cited law requires that independent presidential candidates must register by confirming in front of a notary, the signatures of at least 0,5 % of persons that participated in the last parliament elections. The registration of Tomas Jocelyn Holt and Franco Parisi, both independent presidential candidates, presented irregularities, which resulted in sanctions for the notaries involved.

        Also, there have been infractions of law 19.884, regarding the correct and complete presentation of electoral expenses. The Electoral Service rejected the financial declarations presented Holt and Parisi for this reason.

        Both candidates presented a reclamation in front of the Electoral Tribunal (in Spanish: Tribunal Calificador de Elecciones), and at least the accounts of Parisi were later, in general, approved, but with objections, and with the consequence of a monetary sanction the electoral administrator of Parisi had to pay.

        At least one party, named “Partido Ecologista Verde” had to pay a monetary sanction, as well, as consequence of incomplete presentation of bills for electoral expenses.

        There were no documented infractions regarding expenditure limits, as spending limits in Chile are very high, at the moment.


        Peer reviewer comment: Agree -In the study conducted in 2009 on financing and electoral control spending in Chile, campaign managers and candidates interviewed, suggest that most of the candidates exceed the limits for different reasons, said the problem is the lack of oversight by the Electoral Service, so there are no complaints about it.

        Scoring Criteria

        Please list and describe all documented instances of: 1) violation of contribution limits, 2) violation of expenditure limits, and 3) financial contributions that circumvent the regulatory framework. The objective of this question is to learn more about the local context, so please explain the cases in as much detail as relevant.

        Sources

        I. News reports: "Spending Returns of Presidential Candidates." Electoral Service. 2013.
        http://presidenciales.servel.cl/GastoElectoral/Candidatos_P.html

        ADN, "The ES rejects the Electoral Spending Accounts of Franco Parisi and Tomas Jocelyn-Holt." March 15, 2014. http://www.adnradio.cl/noticias/politica/servel-rechazo-rendicion-por-gastos-electorales-de-franco-parisi-y-tomas-jocelyn-holt/20140315/nota/2129682.aspx

        La Segunda, "The ES ratifies a $150 million fine on the Green Ecological Party." May 7, 2014. http://www.lasegunda.com/Noticias/Politica/2014/05/933371/Tricel-ratifica-multa-a-Partido-Ecologista-Verde-por-mas-de-150-millones-de-pesos

        Karen Soto Galindo, "Firm Case: Appeals Court Punishes Notaries with a Four Month Suspension." La Nacional. April 23, 2014. http://www.latercera.com/noticia/nacional/2014/04/680-575121-9-caso-firmas-corte-apelaciones-sanciona-a-notarios-con-cuatro-meses-de-suspension.shtml

        II. Interview: Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago; interviewed July 30, 2014.

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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    Reporting and Public Disclosure

    More about category
    composite
    42
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      Reporting Requirements to the Oversight Entity
      More about category
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        21
        Score
        NO
        In law, political parties and individual candidates report itemized contributions and expenditures both during and outside electoral campaign periods.More about indicator

        Article 41 of law 19.884 defines, that both, political parties and candidates must present their financial reports by the end of the 30-day-period following the conclusion of a presidential, parliament or municipal election. The Manual for 2013 Elections, published by the Electoral Service in 2013, specifies clearly defined sections for the financial statements, candidates and political parties must use to report their respective electoral income and their electoral expenses.

        Furthermore, Political Parties are obligated to report annual income and expenditures to the Electoral Service, independently of elections. Article 34 of law 18.603, together with resolution 2094 from the Electoral Service, stipulates that political parties must report contributions and expenditures, together with their balance sheet, at least once a year to the Electoral Service. All annual contributions and expenditures made by a political party should at least theoretically be reported there. Resolution 2094 from the Electoral Service stipulates, furthermore, that all contributions to political parties that exceed 100 UF should be reported monthly to the Electoral Service (UF are a financial unit in Chile, free of inflation; 100 UF = US$ 3.997, using the same exchange rate UF- CH$ that was used during 2013 elections, and considering CH$ 573 = 1 US$). Resolution 2094 published by the Electoral Service in 2004 specifies clearly defined sections, political parties must use to report their annual income and their annual expenses.

        In the case of candidates, they report only electoral expenses for the official campaign phase. Article 3 of law 19.884 states that the electoral expenses candidates have to report include only expenses made during the official campaign phase. The cited article mentions furthermore that candidates cannot promote votes before the official campaign phase, but does not establish the obligation for candidates to publish a financial report specifying their annual expenses and annual income received.

        Despite of these reporting duties, under the assumption that “itemized reporting” means a reporting, that “breaks down every contribution or expenditure into its constituent parts, including date, contributor, and contribution type” (definition given by Globa lIntegrity), Chile has no such legislation. Contrary to this, law 19.884 stipulates three types of private donations to parties and candidates: anonymous, reserved and public donations (law 19.884; articles 16 - 22). Only public donations must be “itemized”.


        Peer reviewer comment: Disagree - Suggests a score of 50. The law on campaign spending and the manuals that the Electoral Services delivers to the parties and candidates before the campaign request itemized expenses and income. Regarding donations, you may identify donors who made public donations but not the people who made ??anonymous donations and reserved.

        Out of season, there are fewer demands on how itemized the income and expenditure of political parties must be.

        Scoring Criteria

        A YES score is earned where political parties and individual candidates are required to report itemized contributions and expenditures to the oversight authority, both during and outside electoral campaign periods.

        A MODERATE score is earned where: 1) the requirement applies for itemized contributions, but not for itemized expenditures, or 2) it applies only during the electoral campaign but not outside it. A MODERATE score is also earned where the requirement exists, but it only applies to one actor (whether political parties and individual candidates).

        A NO score is earned where no such law exists.

        Sources

        I. Law 19.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 3 and 41 and 16 - 22. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        II. Manual for 2013 Elections, published by the Electoral Service https://www.dropbox.com/s/aqztdt4za4pisbz/Manual%20Gasto%20Elecciones%202013.doc?dl=0

        III. Law 18.603 about constitution and operation of political parties (in Spanish: “Ley N° 18.603 Orgánica Constitucional de Partidos Políticos”). Article 34. Published in August 1987. http://www.leychile.cl/Navegar?idNorma=29994

        IV. Resolution 2094 from the Electoral Service. Article 2. Published in 2004. https://www.dropbox.com/s/dtm50xcjpzppd6y/RO_2094.pdf?dl=0

        Reviewer's sources: Law 19.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 3 and 41 and 16 - 22. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        Resolution 2094 from the Electoral Service. Article 2. Published in 2004. https://www.dropbox.com/s/dtm50xcjpzppd6y/RO_2094.pdf?dl=0

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        22
        Score
        MODERATE
        In law, political parties and individual candidates are required to report their financial information on a monthly basis during the electoral campaign.More about indicator

        Article 41 of law 19.884 states that political parties and candidates must present their accounts to the Electoral Service by the end of the 30 day period following the conclusion of a presidential, parliament or municipal election. These accounts do not need to be itemized, but should simply reflect the general revenue and election expenses made during the campaign period. Law 18.700 defines in its article 6 that the electoral campaign for presidential and parliament elections lasts 90 days.

        According to the Manual for 2013 elections, the electoral campaign period started on August 17, 2013, and concluded the day of elections, November 17, 2013. December 30 was the last day to report financial information about the campaign to the Electoral Service. In other words: during the 3 month campaign, there is no financial reporting, and the only election reports are submitted 30 working days, or 42 calendar days after the day of election. This translates to one report/3 month campaign, or quarterly reporting. The only information reported monthly, during campaign, according to article 21 of law 19.884, are amounts + details of private donations with public character received by political parties and candidates.


        Peer reviewer comment: Agree -Information on income and expenses is only legally obligated to be delivered 30 days after elections.

        Scoring Criteria

        A YES score is earned where political parties and individual candidates must report monthly their financial information to the oversight authority during the electoral campaign.

        A MODERATE score is earned where the requirement exists on a quarterly basis. A MODERATE score is also earned where the requirement only applies to one actor (whether political parties or individual candidates).

        A NO score is earned where no such law exists.

        Sources

        I. Law 19.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 21 and 41. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        II. Manual of the Electoral Service, regarding 2013 elections https://www.dropbox.com/s/aqztdt4za4pisbz/Manual%20Gasto%20Elecciones%202013.doc?dl=0

        Reviewer's sources: Law 19.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 21 and 41. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

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        23
        Score
        MODERATE
        In law, political parties and individual candidates are required to report their financial information on a quarterly basis outside of electoral campaign periods.More about indicator

        Chilean law fixes two types of reporting to the Electoral Service: Annual reporting of political parties to the Electoral Service (article 34 of law 18.603), and a one-time reporting of all income and expense accounts of candidates and political parties, covering only the period of the official electoral campaign, - reported 30 days after elections. Candidates do not report annual income received in the year of elections, - and neither candidates nor political parties report their income and expense accounts on a quarterly basis.


        Peer reviewer comment: Agree. Indeed, Chile has no obligation to deliver quarterly reports, but there is an obligation to deliver annually the accounts of political parties and 30 days after the end of the election to political parties and candidates.

        Scoring Criteria

        A YES score is earned where political parties and individual candidates must report quarterly their financial information to the oversight authority outside of electoral campaign periods.

        A MODERATE score is earned where the requirement exists on a yearly basis. A MODERATE score is also earned where the requirement only applies to one actor (whether political parties or individual candidates).

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.603 about constitution and operation of political parties (in Spanish: “Ley N° 18.603 Orgánica Constitucional de Partidos Políticos”). Article 34. Published in August 1987. http://www.leychile.cl/Navegar?idNorma=29994

        II. Law 19.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 21 and 41. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        Reviewer's sources: Law 19.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Published in August 2003. http://www.leychile.cl/Navegar?idNorma=29994

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        24
        Score
        0
        In practice, to what extent do political parties and individual candidates report itemized financial information monthly?More about indicator

        There is no legal requirement that parties and candidates report monthly during campaign periods. Instead, they must only submit post election reports (by Article 41 of law 19.884). As the official campaign period is 3 months long, this amounts to 1 report every three months, or quarterly reporting. In law, only general accounts of spending and expenditure must be submitted--no itemization is required. As such, reports are, in practice, never itemized.

        Indeed, the only information reported (monthly), according to article 21 of law 19.884, are amounts + details of private donations with public character received by political parties and candidates. This means that comprehensive reports are not submitted to the Electoral Service.


        Peer reviewer comment: Agree - The only information reported (monthly), according to article 21 of law 19.884, are amounts details of private donations with public character received by political parties and candidates. This means that comprehensive reports are not submitted to the Electoral Service. Chilean law states that campaigning parties and candidates must provide information about their income and expenses generally post elections. All parties and candidates meet this requirement since the delivery of these accountabilities determines their eligibility for post election public resources. The study realized 2009 on electoral expenditure and financing in Chile, all candidates, both mayors and councilors gave their post-election statement.

        But there is no delivery of monthly income and expenses except for private donations of public character.

        Scoring Criteria

        A 100 score is earned where: 1) political parties and individual candidates report on their financial information monthly, and 2) the reports include both itemized contributions and itemized expenditures.

        A 50 score is earned where: 1) the reports are occasionally general rather than itemized or don't contain all accounts, or 2) the reporting frequency is quarterly.

        A 0 score is earned where: 1) political parties and individual candidates rarely or never file reports, 2) the reports are filed but are rarely or never itemized or refer only to either contributions or expenditures, or 3) the reporting frequency is less than quarterly.

        Sources

        I. Interview: Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet (as natural person, - not representing an official opinion). Interviewed July 29, 2014.

        II. Secondary source: Law 19.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 21 and 41. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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        25
        Score
        25
        In practice, to what extent do financial reports by political parties and individual candidates include all types of contributions?More about indicator

        Reports filed by candidates and political parties include a list of all types of contributions. According to the Manual for 2013 elections (page 39), published by the Electoral Service, each type of contribution has a special account-number assigned. Parties and candidates must use these account numbers in their reporting. The contribution types to be identified are: 1. Own contributions 2. Loans with financial institutions 3. Interests paid for these loans 4. Anonymous contributions 5. Reserved contributions 6. Private contributions with public character 7. Private contributions with public character by political parties 8. Contributions via work made by volunteers 9. Usufructs 10. Advance with fiscal funds 11. Refund requested by candidate 12. Refund requested via endorsements 13. Refund requested by transfers to the political party

        Although all these types of contributions are reported, the reporting seems not to be complete. For example, regarding 2013 presidential election, only 3 candidates (Michelle Bachelet, Alfredo Sfeir and Ricardo Israel) reported any type of inkind contribution received, and each one of these three candidates, reported just one inkind contribution received. Sfeir reported contributions via work of volunteers, valorised in 7.400.000 CH$ = 12.914 US$; Bachelet reported one usufruct of a car, valorised in 3.000.000 CH$ = 5.236 US$; Israel reported one usufruct of a car, valorised in 960.000 CH$ = 1.675 US$*. See the attached document published by the Electoral Service. * = considering an exchange rate of 573 CH$ per US$.

        Based on the accounts of interview sources, it is highly unlikely that the other 6 candidates for the presidency did not receive any contribution in form of voluntary work, use of office space, cars, or other in-kind contributions, for example, flyers given additionally by printing houses.

        Candidates and parties reveal private contributions with public character, and do in fact identify (name + ID number) donors. Nevertheless, due to the possibility to donate anonymously in Chile (via reserved donations and anonymous donations), and due to low audit possibilities by the Electoral Service in practice, only two of nine presidential candidates (Bachelet and Sfeir) reported the reception of private donations with public character, identifying the names + ID numbers of the donors. In the case of presidential candidate Bachelet, 19% of all income reported for the first and second electoral round, did reveal identity of the donor - in the case of Sfeir (only first electoral round), 14%. The other seven candidates did not reveal identities of their donors, because they financed their campaigns with anonymous donations, own contributions, reserved donations, and credits in the financial system.

        Giorgio Jackson, elected member of parliament fo Santiago center, and ex president of the Student Federation of “Universidad Católica de Chile” (FEUC) 2010-2011, and spokesman of the Confederation of Students in de Chile (CONFECH), says:

        “The Electoral Service in fact reviewed our accountability report, and made two specific comments - simple things that we resolved. They asked for details, and we sent the answer. However, it is common that not all income and expenditure is declared in the campaigns. Imagine a printing company, for example, that says to a candidate: I would love to give you 100,000 flyers additionally to the 50,000 that you bought. Nobody will never know this. There is always the risk that candidates can underestimate their donations received and expenditure.”

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet says (as natural person, - not representing an official opinion):

        “Contributions of volunteers are not well recorded (valued), as a type of income candidates receive. And, again, the Electoral Service has not sufficient resources and energy to do the work that should be done here. Also, electoral periods are too short, and any type of income received or campaign activity made before, won´t be registered. There is a vacuum of information, also, between the presidential election, and the beginning of the campaign phase for the second electoral round for presidency”.

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago, says:

        “The reporting of parties and candidates includes all kinds of contributions. But in-kind contributions, as cars, offices or discounts are not audited, in fact, and therefore not well reported. For presidential elections, it is not an important amount, in terms of fundraising, but it is more important for parliamentarians. There are people who tell you, for example, that they will provide you with two cars, or that will give their office for three months. In a presidential campaign, it is not very important, but in a parliamentary election this can be very relevant. For example in rural areas the fact that you could dispose of five trucks, makes a difference. It is also a campaign contribution, but in many cases won´t be valued. On the other hand, I see that candidates can get a credit, for example, and anticipate the electoral campaign, but they will never report neither the credit – or other income received - nor the expenses associated. Candidates have to report only income received and expenses made during the campaign. ”

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales, says:

        “The campaign is very short, and before the campaign begins, nearly no regulation exists regarding financing and activities of candidates. We did a study last year, following candidates for parliament in the South. We saw that they started campaign not in August 2013, but three months before, or even in March and April. Here you have to add that the primary elections for candidates in 2013 anticipated the parliament and presidential campaign, and in some districts where there were no primary candidates, you could see campaigning as well, during the year. The official activities start later, but there are many meetings before, go to openings with mayors, and so on. Financial reports do not account for pre-campaign spending and contributions."


        Peer reviewer comment: Agree - Indeed, in the income and expense reports, information on private donations of public character, both individuals and companies prefer to donate via reserved donations. There are other grants that are reported in the aggregate and no address associated with donors who make donations of public character. Campaign managers and candidates interviewed in the 2009 study (Control electoral funding and expenditure in Chile) suggest that large donations are classified as reserved.

        Scoring Criteria

        A 100 score is earned where: 1) reports include an itemized list of all contributions indicating their type (in-kind, cash where allowed, etc.) and amount (estimated value for in-kind contributions), and 2) contain donors' names and addresses (or other personal identifier).

        A 50 score is earned where only one of the two conditions listed in the 100 criteria is met.

        A 0 score is earned where neither condition is met.

        Sources

        I. Interviews: Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei in 2013 . Interviewd July 30, 2014.

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet (as natural person, - not representing an official opinion); interviewed July 29, 2014.

        Giorgio Jackson, elected member of parliament fo Santiago center, and ex president of the Student Federation of “Universidad Católica de Chile” (FEUC) 2010-2011, and ex spokesman of the Confederation of Students in de Chile (CONFECH). Interviewed August 7, 2014.

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales. Interviewed August 1, 2014.

        II. Secondary source: Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Article 41. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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      Availability of Electoral Campaigns' Financial Information to the Public
      More about category
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        26
        Score
        YES
        In law, financial information from political parties and individual candidates must be available to the public.More about indicator

        Law 19.884 defines in articles 48 and 6 that all income and expense accounts presented to the Electoral Service are seen as public information, and should be published within 15 working days after presentation of the accounts by the parties and candidates. The law specifies that any person can obtain access to them, paying the respective costs (without specifying them), under the condition that there won't be interruptions in the revision process the Electoral Service is engaged in. Article 48 declares, furthermore, that the Electoral Service, while finishing the revision of the electoral accounts, must be updating the information published in its web site, clarifying which accounts are accepted, observed or rejected.

        Scoring Criteria

        A YES score is earned where in law financial information of political parties and individual candidates must be made available to the public, whether online or digitally within two days of request.

        A MODERATE score is earned where financial information must be made available to the public, but no requirement exists regarding cost, format or number of days within which it must be made available.

        A NO score is earned where no such law exists.

        Sources

        I. Law 19.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 6 and 48. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

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        27
        Score
        50
        In practice, to what extent can citizens easily access the financial information of all political parties and individual candidates?More about indicator

        On one side, citizens have easily access to the most important financial information of all political parties and individual candidates, regarding electoral campaigns. Information is in the website of the Electoral Service, www.servel.cl.

        Nevertheless, information is (i) incomplete and is presented in (ii) presented in a confusing format.

        Information is not complete: Citizens can only find information on the publicly funded advances paid to candidates and political parties, often without the date of the pay out of funds, and without confirmation on the final payment made to candidates and parties. The information would be complete, if there would was the exact amounts paid to the candidates and parties, with the specific day of pay-out, - and with the relevant formula transparently available (number of votes obtained * amount fixed in law 19.884).

        Regarding information about the presidential elections, the Electoral Service publishes in an excel document all income, public and private, of the candidates and their parties. However, the information published covers only the first electoral round. In another section of the web of the Electoral Service ("documentos"), citizens can find information about how political parties financed the second round of presidential elections. Information is not complete because there is missing financial information about income and expenses (public and private) of the candidates themselves, in the second round of elections. Such information can be obtained via transparency request, but even then, it is transmitted as pdf, and not in a machine readable format.

        Any information on the finance of campaigns (public and private income – as well as expenses), is available via transparency requests to the Electoral Service. Information requested using the transparency law will be answered in 20 working days. Information asked via the link “contact” will be answered, normally, in 5 working days (http://www.servel.cl/ss/site/contacto.html).

        Confusing format and reliability of information: The usability of information provided by the Electoral Service is very low. In the section of its website entitled “documents”, citizens can financial information on elections, mixed with balance sheets of parties (without ranking, by year), and mixed with documents that publish information about official meetings of the Directive Council. Excel sheets with detailed information on income and expenses of the candidates and parties during the campaign have no filters established and do not present total amounts of the respective income or expense accounts. All income of all candidates of the last parliament and presidential election in 2013 is presented together in ONE excel file, without any filter, nor consolidated numbers. In the same way, the Electoral Service presents information on expenses of candidates, or income and expenses of political parties during elections.

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet says (as natural person, - not representing an official opinion): “Information published by the Electoral Service is not accessible. With the same legal rules, the institution could present the same information more digestibly. The Chilean State in general could present all its information more didactically for citizens. For me, as an electoral expert, it is difficult not to get lost in the information published by the Electoral Service. Not all information is in excel format. And the excel files presented are difficult to handle. For example, you cannot find total amounts, calculated via formulas. They comply with the law, but make difficult the access to information. If it is difficult for me, imagine how it will be for other people. In Chile, the Electoral Service Servel has a problem, because it hasn´t sufficient financial resources and therefore no energy to make work what should be working. Once, a journalist from a newspaper (“El Mercurio”) called me to enable him - 3 hours! - to understand the webpage of the Electoral Service….“

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago, says: “I think that electoral information published in the website of the Electoral Service is little known, and is not easy to access. I think public information is in general not as transparent and easy to access as it should be, but not because the institution want to do so, but because they don't have the equipment and financial resources. I think that's one of the changes that must be done in Chile.”


        Peer reviewer comment: Agree. Information exists but readily accessible formats available on the Web site are unfriendly and do not provide details on spending and income. To access such details, one must order it via a request for public information and pay for copies, which are also delivered in an unfriendly format.

        Scoring Criteria

        A 100 score is earned where: 1) all relevant financial information is freely available online, 2) it can be obtained digitally within two days of requesting it, and 3) it is in a machine readable format (for example in csv or xml format).

        A 50 score is earned where: 1) information is available but in some cases is incomplete or lacking detail, 2) obtaining complete information takes up to a month, or 3) it's not necessarily digital or in machine readable format.

        A 0 score is earned where: 1) the information is not publicly available, or 2) obtaining it takes more than three months, or 3) the cost of obtaining it is prohibitive for the regular citizen.

        Sources

        I. Information available on the website of the Electoral Service, in the link "documentos": http://www.servel.cl/ss/site/documentos.html

        II. Interviews:

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet (as natural person, - not representing an official opinion); interviewed July 29, 2014.

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago; interviewed July 30, 2014.

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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        28
        Score
        50
        In practice, to what extent is financial information published in a standardized format?More about indicator

        Information on income and expenses is "theoretically" standardized: all income of all candidates is presented together in one excel document, with established categories of information, each user must / can filter on its own.

        At the time of this evaluation, in the website of the Electoral Service, there is missing information about the income and expenses of candidates during the second round of presidential elections – information that still isn´t standardized. Although the excel file establishes categories of information, candidates or employees of the Electoral Service do not always use the same standards.

        For example, if you establish search filters in the file that shows income of candidates during 2013 elections, and filter the category "fiscal advance", you see only part of the fiscal advance given, because the fiscal advance of candidate Ernesto Silva was published as "reserved donation" from the Electoral Service. As detailed description of the category "fiscal advance", you can find at least 10 ways to re-name /specify the fiscal advance. In summary: there are categories, but you cannot trust that information is presented correctly, and the excel file is not sufficiently standardized.

        Further, information presented in the balance sheets of the parties (in the website www.servel.cl), published by the Electoral Service, is not 100% comparable with information presented in other files published by the Electoral Service. Although it exceeds the time frame for this evaluation, the balance sheets of several political parties in 2012 show amounts of reserved donations received that do not coincide with the amounts the Electoral Service publishes regarding reserved donations political parties received, in another excel (attached pdf, as result of a transparency request).

        Patricio Santamaría, President of the Directive Council of the Electoral Service says: “My aim for the Electoral Service is that it will become an institution that promotes transparency in political parties, and that it will be an institution very closed to citizens. The Electoral Service itself should build up a better website, improve standardization, that informs better and more didactic on political parties and elections. In this way, we could make an important contribution to democracy, while creating more interests for politics in society.”

        Scoring Criteria

        A 100 score is earned where financial information for all political parties and individual candidates is available to the public in a standardized format.

        A 50 score is earned where only part of the information is published in a standardized format. A 50 score is also earned where the information is standardized, but it doesn't cover all political parties and individual candidates.

        A 0 score is earned where financial information is not available in a standardized format.

        Sources

        I. Website of the Electoral Service: www.servel.cl

        II. Three documents attached (expenses and income of candidates in 2013 elections, and detailed amounts of reserved donations received by political parties, reported by the Electoral Service) Income: https://www.dropbox.com/s/2du1zmvdx4rr056/DetalleIngresosPresidencialParlamentariasCORE.xls?dl=0 Spending: https://www.dropbox.com/s/8qlqy0i9bnqsk46/DetalleGastosPresidencialParlamentariasCORE.xls?dl=0 Reserved donations: https://www.dropbox.com/s/ldm0fd9rmr7gq74/Solicitud%20de%20Informaci%C3%B3n%20Donaciones%20Reservadas%20Partidos%20Pol%C3%ADticos%20%28OF1940%29.pdf?dl=0

        III. Patricio Santamaría, President of the Directive Council of the Electoral Service, interviewed August 14, 2014.

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        29
        Score
        100
        In practice, to what extent do mainstream journalism media outlets use political finance data in their reporting?More about indicator

        At least three independent mainstream media outlets have used officially published political party or individual candidate financial information as part of their reporting. In the sourced reports, CNN-Chile, El Mercurio, and BioBio Chile all reported on Michelle Bachelet's electoral spending, using officially published information from the ES.

        Nevertheless, Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago, says: “I see little interest in the press to report on information the Electoral Service publishes. Obviously, a scandal always will sell. But there is nearly no reporting or serious research, on the basis of data the ES publishes. In fact, press will not directly search data or information - they normally need someone to do the research and bring the information nearly ready to be published.”

        Scoring Criteria

        A 100 score is earned where at least three independent mainstream journalism media outlets have used officially published political party or individual candidate financial information as part of their reporting.

        A 50 score is earned where one independent mainstream journalism media outlet has used officially published financial information as part of its reporting.

        A 0 score is earned where no mainstream journalism media outlet has used officially published financial information as part of its reporting.

        Sources

        I. News reports: CNN-Chile, "The ES reported that Bachelet led the campaign in expenses." January 24, 2014. http://www.cnnchile.com/noticia/2014/01/24/servel-informo-que-bachelet-lidero-gastos-en-la-campana-presidencial-

        Eduardo Woo, "Bachelet spent more than all the other presidential candidates put together, according to the ES." Biobio Chile. January 23, 2014.
        http://www.biobiochile.cl/2014/01/23/michelle-bachelet-gasto-mas-que-todos-los-candidatos-juntos-en-campana-presidencial-segun-servel.shtml

        El Mercurio, "The ES submits spending details of the presidential elections: Bachelet occupies first place." January 23, 2014. http://www.emol.com/noticias/nacional/2014/01/23/641252/servel-entrego-detalles-de-gastos-electorales.html

        II. Interview: Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei in 2013 . Interviewd July 30, 2014.

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        Score
        25
        In practice, to what extent were there no news reports or other documented incidents of violation or abuse of political finance laws?More about indicator

        There were at least more than 2 documented incidents of political finance violations in the 2013 election.

        For instance, as documented in the sources, there was a corruption case in the Valparaiso Region of Chile, that was used, in part, to finance political campaigns in 2013. A report regarding administrative disorders in the regional government of Valparaiso, unveiled by the Superior Audit Institution, showed that slightly more than CH$ 1.1000 million (US $ 1.919.721) wers given to different community organizations for projects that did not have any previous analysis regarding quality and technical feasibility, being managed outside the transparency rules required for the respective fiscal expenses. Another CH$ 2.233 million (US$ 3.897.033) were not specified by the respective institutions and there is no information available on their realization - the money simply "disappeared". The National Audit Institution expressly pointed out that some of the projects assigned and financed with fiscal funds were used as platform for political campaigns regarding municipal (2012) and parliamentary (2013) elections.

        On August 29, 2014, the law court of Valparaiso issued sentences against three persons for misappropriation of public funds (the persons condemned are the former head of the department of administration and finance of the Regional Government; the former Chief of Cabinet of the ex- Regional Governor Raúl Celis, and a person from the civil sector involved).

        A second case concerns the rejection of several countable documents presented to the Electoral Service by Partico Ecologista Verde and the application of a sanction to the party. The party “Ecologica Verde” had to cancel more than CH$ 150 million (US$ 261.780) after the Chilean Electoral Tribunal rejected the appeal made by the party and confirmed the sentence of the Electoral Service. According to the resolution of the Tribunal, the party could not prove that fees submitted as electoral expenditure, were effectively services provided for the presidential campaign of Alfredo Sfeir in 2013. The party committed errors and serious omissions, and the presented accounts were insufficient and lacking in clarity.

        A third case deals with the summary of rejections the Electoral Service made regarding financial reporting in the 2013 campaign. The Electoral Service made a series of objections to the electoral spending reported by the nine presidential candidates. The main observations were according to article 2 of law 19.884 on transparency, limits and control of electoral expenses. The cited article indicates the types of expenditures that are allowed during the campaign, - and suggests that amounts should be market based, and not excessive. In the case of the elect President, Michelle Bachelet, there were 37 observations on the accounts presented, mostly for some payments that were pending.

        Meanwhile, the candidacy of Evelyn Matthei received 30 observations - 26 of them, CH$ 190 million (US$ 331.588) due to non-payment of invoices submitted by suppliers. In addition, it was observed that total income did not fit with total expenses, showing a difference of more than CH$ 27 million (US$ 47.120). Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago, says: “regarding the accounts presented for candidate Evelyn Matthei, I saw the Service more active, concretely. They asked us for more details on some bills, wanted to know the background of some expenses, and so on. Audits have improved”.

        Presidential candidate Marco Enriquez-Ominami had four observations on expenses related to ""image consultancy"", informing CH$ 755.556 (US$ 1.318) in makeup and CH$ 644.444 (US$ 1.124) in hairdressing. The Electoral Service considered that these expenses did not conform to the concept of electoral spending. Independent Economist Franco Parisi was questioned by the Electoral Service for the purchase of ties, boxers shorts, belts and socks from Hugo Boss, getting the comment of the election authority that these expenses do not match to the financing of expenditures during campaign events. Presidential candidate Marcel Claude was questioned for the item ""expenses of various kinds"", because he did not deliver details of these disbursements. Environmentalist candidate Alfredo Sfeir got observations on his trips to Paris, Brussels and Lima. The Electoral Service rejected the corresponding travel expenses, considering them out of scope. Expenses of candidate Roxana Miranda were observed as well, requesting to detail the item “other expenses” presented. And, candidates Ricardo Israel and Jocelyn-Holt were asked to detail some bills presented as electoral expenses. These observations, however, do not constitute clear-cut instances of violations, merely potential improprieties.


        Peer reviewer comment: Agree - Another recent case bears mentioning. As seen below, it is suspected that some donations have been made by a company through informal channels to different candidates.

        Scoring Criteria

        A 100 score is earned where there were no news reports or other documented incidents of violation or abuse of political finance laws during the most recent national election.

        A 50 score is earned where there were news reports or other documented incidents of no more than two cases of violation or abuse of political finance laws during the most recent national election.

        A 0 score is earned where there were frequent news reports or other documented incidents of violation or abuse of political finance laws during the most recent national election.

        Sources

        I. News reports: Alberto Arellano, "Corruption in Valparaiso." CIPER, May 5, 2014.
        http://ciperchile.cl/2014/05/05/corrupcion-en-valparaiso-contraloria-revela-la-entrega-de-3-333-millones-de-manera-irregular/

        "Ex-functionaries of the municipality of Valparaiso are sentenced in fraud case." BioBio. August 1, 2014.
        http://www.biobiochile.cl/2014/08/01/ex-funcionarios-de-intendencia-de-valparaiso-son-condenados-por-caso-fraude.shtml

        La Segunda, "The ES ratifies a $150 million fine on the Green Ecological Party." May 7, 2014. http://www.lasegunda.com/Noticias/Politica/2014/05/933371/Tricel-ratifica-multa-a-Partido-Ecologista-Verde-por-mas-de-150-millones-de-pesos

        ADN, "The ES rejects the Electoral Spending Accounts of Franco Parisi and Tomas Jocelyn-Holt." March 15, 2014. http://www.adnradio.cl/noticias/politica/servel-rechazo-rendicion-por-gastos-electorales-de-franco-parisi-y-tomas-jocelyn-holt/20140315/nota/2129682.aspx

        II. Interview: Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei in 2013 . Interviewed July 30, 2014.

        Reviewer's comment: CIPER, "The Black Box of Silver Rocking the UDI." 30 September, 2014. CASO PENTA La caja negra de las platas políticas que sacude a la UDI

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        Score
        100
        In practice, to what extent were there no news reports or other documented incidents of vote-buying?More about indicator

        In Chile, there are no news reports or other documented incidents of vote-buying.

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago, says:

        “I think it is a myth when persons tell they heard about vote buying in political campaigns in Chile. If it happens, it's very rare. Yes, there are gifts. Three days before elections, candidates will distribute hats, badges and bread among people, and depending of the moment of the year, maybe “empanadas” as well. People like that. They are a kind of advertising more than vote buying, because there is no security of the vote given, as it is secret. On the other hand, persons are already used to this practise and will receive gifts of all candidates. A “purchase” of votes, that means, that a candidate gives something only if the citizen that receives the gift is going to vote for him, does not exist any more in Chile.”

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet says (as natural person, - not representing an official opinion): “Maybe vote buying exists, but as an exception. Candidates are risking less, from election to election. I do not even remember a case of vote buying in Chile”.


        Peer reviewer comment: Agree - There are no documented facts about buying votes. Suspicions exist, but there's no conclusive evidence. In the study cited above, campaign managers point out that there are indeed mechanisms to buy votes, but it is difficult to denounce them and check them. Possible vote purchases occur in municipal elections.

        Scoring Criteria

        A 100 score is earned where there were no news reports or other documented incidents of vote-buying during the most recent national election.

        A 50 score is earned where there were news reports or other documented incidents of no more than two cases of vote-buying during the most recent national election.

        A 0 score is earned where there were frequent news reports or other documented incidents of vote-buying during the most recent national election.

        Sources

        No articles found.

        I. Interviews:

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago. Interviewed on July 30, 2014.

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet (as natural person, - not representing an official opinion). Interviwed on July 29, 2014.

        Reviewer's comment: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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        Score
        0
        In practice, to what extent do civil society organizations use political finance data?More about indicator

        There are published articles by the press, quoting financial data published by the Electoral Service, regarding 2013 elections.

        However, according to interviewees, no civil society organizations published a study based on information the Electoral Service publishes in its website for 2013 elections.

        Scoring Criteria

        A 100 score is earned where at least three civil society organizations have used officially published political party or individual candidate financial information as part of their advocacy or awareness work.

        A 50 score is earned where one civil society organization has used officially published financial information as part of its advocacy or awareness work.

        A 0 score is earned where no civil society organization has used officially published financial information as part of its work.

        Sources

        I. Interviews: Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei in 2013 . Interviewd July 30, 2014.

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet (as natural person, - not representing an official opinion); interviewed July 29, 2014.

        Giorgio Jackson, elected member of parliament fo Santiago center, and ex president of the Student Federation of “Universidad Católica de Chile” (FEUC) 2010-2011, and ex spokesman of the Confederation of Students in de Chile (CONFECH). Interviewed August 7, 2014.

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales. Interviewed August 1, 2014.

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        33
        Score
        --
        Open Question: Have there been political finance legal reforms or reform bills presented to the legislature in the last 10 years?More about indicator

        Before 2003, Chile had no regulation regarding funding of politics. In the same year, and after public pressure as consequence of a corruption scandal in Chilean government, government and opposition were able to approve together a law that regulated public finance of political campaigns, - and private donations to political parties or candidates (see law 19.884). Everyone in Chile recognises that this first step changed the relation money – politics in Chile, towards less corruptions, and more transparency.

        Francisco Vidal, ex Minister between 2003 and 2006 and 2007 and 2010, says: “In Chile, there is a big difference before 2003 and after. Before 2003, I participated in several campaigns. People gave me cash on the road. Once, I opened a bank account on my own name, and collected US$ 3 millons on it…imagine. But there was no other possibility, because we had no law!”

        Pablo Longueira, official candidate for presidency in 2013, ex minister, ex senator, says: “I was part of this legislation to be issued 2003 that was part of the modernisation Agenda of the Chilean State, based on an agreement to which I arrived with President Ricardo Lagos. Before 2003, in Chile there was no law. Political financing was illegal. There were two basic agreements of modernization that I asked to Lagos when Government was living a complex situation: implement in Chile Public Vetting Process for higher employees of Government, and laws to regulate financing of campaigns, including public financing. In my sector no one particularly wanted to have public financing. I defended public financing for many reasons - and current laws were made. Obviously they are imperfect but it was a big step from what we had before 2003.

        As said by Pablo Longueira, actual laws are imperfect, but there's a trend towards more transparency in political finance, and towards public permanent funding of political parties; several reform bills presented in the last years tried to advance in this direction:

        • Law 19.963 (published in 2004): introduced in law 19.884 a monetary penalty, whenever the candidate or political party will exceed the fixed expense limit; specified as well the mechanism of reserved donations. • Law 19.964 (published in 2004): modifies law 19.884, eliminates the obligation for parties and candidates to work with suppliers published in an official register; specifying endorsements candidates and parties can make regarding fiscal repayment. • Law 20.053 (published in 2005): specifies permitted electoral expenses and clarifies other inconsistencies in the Law 19.884. • Reform bill 3961-06 (2005; stored, that means it stays in parliament, but without legislative movements): proposes criminal punishment when exceeding expenditure limits • Reform bill 3979-06 (2005; removed by the Chilean President, that means to take the project out of legislative process): improves the system of reserved donations and raises the limit for political donations of enterprises (as % of their income) • Reform bill 4696-06 (2006; stored): proposes to empower citizens to challenge via the Electoral Service the financial accounts candidates or parties present for their campaign period. In the case of rejection of an account via the Electoral Service, proposes to exclude any fiscal repayment and to deny the employment of the candidate by the State. • Reform bill 4686-06 (2006; stored): proposes to eliminate anonymous donations.
        • Reform bill 4724-06 (2006, in process): proposes fiscal resources on a quarterly basis to political parties, in the periods out of campaign. The amount would be around US$ 1,5 a year for every vote obtained in the last election of municipal councillors; the initiative proposes also banning of contributions from companies, and searches to limit anonymous and reserved donations.• Reform bill 4724-06 (2006, in process): proposes fiscal resources on a quarterly basis to political parties, in the periods out of campaign. The amount would be around US$ 1,5 a year for every vote obtained in the last election of municipal councillors; the initiative proposes also banning of contributions from companies, and searches to limit anonymous and reserved donations; information on this reform bill is cited from an analysis Salvador Valdés realized for the Think Tank CEP (“Centro de Estudios Públicos”); nevertheless, the indication available on the website of the Senate does not indicate the mentioned information. • Reform bill 5563-06 (2007; in process): proposes that candidates and their administrator shall be jointly responsible for irregularities regarding income and expenses of electoral campaign. • Reform bill 5911-06 (2008; in process): proposes to increase penalties for passing the limit of electoral expenses and eliminates reserved and anonymous donations. • Reform bill 6044-06 (2008; in process): proposes that surveys made on political opinion and intention of voting by citizens should point out clearly their funding sources and identity of persons responsible. • Reform bill 6144-07 (2008; in process): proposes a constitutional reform that incorporates a new causal of loss of the charge of authorities for contraventions to law 19.884, about transparency, limits and control of electoral expenses. • Reform bill 6664-06 (2009; in process): proposes to expand the concept of electoral expenditures - incorporating propaganda that is made before the starting of the official campaign phase, without the right to refund these expenses with fiscal funds. • Reform bill 8283-06 (2012, in process): proposes that all private donations to candidates or parties during campaign should be public; proposes furthermore that candidates or parties can receive donations on their own up to 10% of their respective expenditure limit, and the difference via transfer to the Electoral Service; proposes the prohibition of donations by enterprises, and proposes to punish excess expenditure with dismissal of the candidate. • Reform bill 8949-06 (2013; in process): proposes that all donations will be public and should be paid via the Electoral Service, and not directly to candidates or parties. • Reform bill 9326-07 (2014, recently approved in first legislative proceeding): changes the electoral binominal system for one that is more proportional; as part of this reform bill were approved two indications presented by two independent parliamentarians Giorgio Jackson and Vlado Mirosevic. One of these indications proposes to prohibit that enterprises make contributions to parties and candidates, reserving this right only to natural persons. "Those who have the right to vote are citizens, not companies," said Giorgio Jackson. The other indication proposes to end with reserved donations, and proposed donations to be public or anonymous, when they won´t exceed 10 UF (around CH$ 240.000 = US$ 419).


        Peer reviewer comment: Agree - Analyzing parliamentary discussions, my perception is that there has been no political will to advance certain issues, because as discovered in the 2009 study, most of the candidates and parties does not respect the spending limits, and do not represent everything that happened during the election campaign.

        Scoring Criteria

        Please list and describe all documented instances of: 1) political finance reforms, including bills passed, executive orders signed, court rulings and any other legal act that had a direct effect on existent political finance regulation, and 2) all legal reform attempts presented to the legislature even if they were not approved. Please describe the political context that produced the reforms or reform attempts.

        Sources

        I. Website of the Senate, enumerating political finance legal reforms http://www.senado.cl/appsenado/templates/tramitacion/index.php

        II. News on national TV channel 13, regarding a reform bill presented on August 13, 2014. http://www.13.cl/t13/nacional/reforma-al-binominal-diputados-aprobaron-indicaciones-que-prohiben-donaciones-de-empres

        III: Information on reform 4724-06 (2006), realized by Salvador Valdés for the Think Tank CEP (“Centro de Estudios Públicos”); August 2008. http://www.cepchile.cl/dms/archivo41502246/pder294_valdes.pdf

        IV. Interviews: Francisco Vidal, ex Minister between 2003 and 2006 and 2007 and 2010; interviewed August 12, 2014. Pablo Longueira, official candidate for presidency in 2013, ex minister, ex senator; interviewed August 4, 2014.

        Reviewer's sources:

        Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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    Third Party Actors

    More about category
    composite
    33
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      Applicability of the Law to Third-Party Actors
      More about category
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        Score
        YES
        In law, third-party actors (foundations, think tanks, unions, political action committees, etc.) report itemized contributions received and expenditures to an oversight authority and the information is made publicly available.More about indicator

        By article 26 of law 19.884, third party actors are strictly prohibited from contributing support to campaigns. This includes spending for political campaigns, and any expenditure or contribution with political purposes.

        In Chile, there are different legal types of non-profit organizations. Any of them can be used as a think tank that gives advice and other support to political actors. There are no special organizations that solicit contributions and make direct expenditures related to an electoral campaign. All social organizations are required to send once a year their annual report and their financial statements to the Ministry of Justice (see article 557.1 in law 20.500), not to the Electoral Service. The mentioned law does not state explicitly whether these documents are public, via transparency request.

        Apart from this, law 19.885 defines the existence of “institutes for political capacitation” (in Spanish: institutos de formación política), as any kind of for-profit or non-for-profit organization, declared by a political party as their respective institution. The law gives special tax benefits to these institutions, under the condition they are registered in a official list the Electoral Service is keeping. According to information the Electoral Service sent in answer to a transparency request, there is only one political party (PPD), with an officially associated institution, and this institution never received a donation under the mentioned law. Such institutes are not legally permitted to purchase advertisements on behalf of their affiliated party or candidates.

        Scoring Criteria

        A YES score is earned where: 1) third-party actors are required to report to the oversight authority itemized contributions received and expenditures related to their support of electoral campaigns, and 2) the information must be publicly available.

        A MODERATE score is earned where third-party actors are required to report itemized contributions received and expenditures related to their support of electoral campaigns, but the information is not required to be publicly available. A MODERATE score is also earned where regulations exist, but only apply to electoral campaigns of one actor (whether political party or individual candidate).

        A NO score is earned where no such law exists.

        Sources

        I. Law 20.500 about associations and civic participation (in Spanish: Ley 20.500 Sobre Acociaciones y participación ciudadana en la gestión publica). Article 557.1. Published in February 2011. http://www.leychile.cl/Navegar?idNorma=1023143

        II. Law 19.885 that incentives the good use of donations with tax benefits, extending them to other social uses and public purposes. (in Spanish: “Ley 19.885 que incentiva y norma el buen uso de donaciones que dan origen a beneficios tributarios y los extiende a otros fines sociales y públicos”). Articles 8 and 9. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213294

        III. Law 19.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Article 26. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

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        0
        In practice, to what extent do third-party actors (foundations, think tanks, unions, political action committees, etc.) report itemized contributions received and expenditures to an oversight authority?More about indicator

        Despite the ban on political campaign participation, many foundations, institutes, and think tanks related to parties help parties and candidates in some fashion. No reporting of such assistance occurs.

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago, says:

        “There is no special regulation for political NGOs. There should be a special regulation, both during the campaign and outside campaign - at all times. I see an increasing tendency of politicians to create their own NGOs or foundations, which can receive income and obviously support political aims of their founders, in general.”

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales, says: “Maybe some candidates might have their own foundations, but I believe that they have little impact on the total amount of the campaign. The great part of the campaign's expenses goes to advertising, and radio. Hard spending is made during the three official campaign months; eventually some candidates generate these instances of foundations to support their actions. This would require more transparency. But I think via NGOs do not and will not channel the real weight of the campaign.”


        Peer reviewer comment: Agree. Campaign managers and candidates do not reference the political activity of third party actors, but they do state that companies make almost all of their donations in a reserved manner.

        Scoring Criteria

        A 100 score is earned where all third-party actors report to an oversight authority both itemized contributions received and itemized expenditures.

        A 50 score is earned where third-party actors report to an oversight authority either itemized contributions received or expenditures, but not both. A 50 score is also earned where the reports refer only to one type of third-party actor, but do not cover others.

        A 0 score is earned where third-party actors rarely or never report itemized contributions received or expenditures.

        Sources

        I. Interviews: Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago; interviewed July 30, 2014.

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales; interviewed August 1, 2014.

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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        0
        In practice, to what extent can journalists and citizens easily access the financial information of third party actors, including the political spending of those actors in support of political parties and individual candidates?More about indicator

        In Chile, non-for profit organizations are non-political actors. They give indirect support to political actors, but they do not spend money in support of parties or candidates. Non profit organizations, in general, lack finance in Chile. "You may visit organizations that work closely to a certain party or political player. Generally, they are empty..." says Claudio Fuentes. As donations can easily be given to politicians without revealing identity of the donor, and as it should be assumed that a certain portion of electoral (and non-electoral) income and expenses of candidates and parties won´t be declared officially, it seems "not necessary" to channel funds through non profit organizations.

        All formal social organizations are required to send once a year their annual report and their financial statements to the Ministry of Justice (see article 557.1 in law 20.500). The law does not state explicitly whether these documents are public, via transparency request. But in fact, in 2010 the Justice and the Council for Transparency took the decision to declare at least the annual statements and the balance sheets of foundations and non-for profit organizations as public – but not their minutes of the board meetings. The decision was based on an information request of CIPER, a national non-profit organization dedicated to investigative journalism, towards the balance sheets of the foundation of the former President of Chile, Sebastián Piñera. Ciper had to investigate during 17 months financial information on this foundation.

        Scoring Criteria

        A 100 score is earned where: 1) all relevant financial information is freely available online or in hard copy at the cost of photocopying, 2) it can be obtained within two days of requesting it, and 3) it is in a machine readable format (for example in csv or xml format).

        A 50 score is earned where: 1) information is available but in some cases is incomplete or lacking detail, 2) obtaining complete information takes up to a month, or 3) it's not necessarily in machine readable format.

        A 0 score is earned where: 1) the information is not publicly available, or 2) obtaining it takes more than three months, or 3) the cost of obtaining it is prohibitive for the regular citizen.

        Sources

        I: Interview: Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales. Interviewed August 1, 2014.

        III: Secondary Sources: Investigation of Ciper, a non-profit organization dedicated to investigative journalism, regarding the foundation of the former President Sebastián Piñera. Published July 10, 2010. http://ciperchile.cl/2010/10/07/fallo-corte-de-apelaciones-memorias-y-balances-de-fundacion-futuro-son-publicos/

        Law 20.500 on associations and civic participation in the public management (in Spanish: “Ley 19.884 sobre asociaciones y participación ciudadana en la gestión ública). Article 557.1. Published in February 2011. http://www.leychile.cl/Navegar?idNorma=1023143

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        Open Question: Please describe how third party-actors (even if they are not regulated by your country's laws) obtain contributions and spend in support of political parties and/or individual candidates.More about indicator

        Third party actors may be used as “political brains” for political parties, candidates and congressman, but do not have an active role in campaigns, and play a rather insignificant role in politics in general.

        Unions of the private sector play a role in campaigns, in the sense that they are the official voice of their respective branches. Unions are not allowed to effectuate political contributions, and there is no information available if a union ever tried to contribute illegally to a political party or candidate for electoral purposes, or whether they channelled in any way financial recourses to support a candidate or party. As spending limits are very high in Chile, - and as enterprises and private persons can legally spend without revealing identity (via reserved donations), it should not be necessary that unions illegally funnel financial resources to parties and candidates. There may be several wealthy private persons that contribute illegally to politics, - because candidates do not want to recognize high expenses to citizenship, or because they do not want to itemize expenses, or because they simply want to facilitate procedures during the campaign. “I never heard that unions of the private sector do play a role in financing of politics in Chile – and I think they do not”, says Christoph Schiess, entrepreneur with investments in several branches in Chile.

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet says (as natural person, - not representing an official opinion): “The control of the Electoral Service regarding limits of expenses in practice does not exist. I think we have to legislate about expense limits in Chile. Potential voters rose as result of the automatic electoral registration - while persons who actually voted declined (and spending limits do refer to potential voters). While my challenge in the 2005 campaign was not to exceed the limit, now, the problem was just to show a reasonable level of expenses, - as if in fact, nowadays, there is no real spending limit. Campaigns can legally spend much more than they normally do. Therefor there's no need to rely on third party actors to cover additional expenditures of campaign.”

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales, says: “Social Organizations in Chile are normally under-financed, and organizations linked to politics, as well. You go to a political think tank, and it will be empty. My perception is that third party actors normally won´t designate funds for political reasons. My perception is that ex president Sebastian Piñera did not co-finance his political project with his foundation “Futuro”, and that the Frei Foundation (Foundation of ex President Frei) is more a museum than the fundraising tool.”

        Francisco Vidal, ex Minister between 2003 and 2006 and 2007 and 2010, says: “I see NGOs or think-tanks far from real politics during campaigns. Think, on the other side, that with few exceptions, foundations of parties are weak, because parties are weak as well. They do play a political role in the public debate, but as political actors, they are nearly like nothing”.

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago, says: “Although there is this increasing tendency of politicians to create their own NGOs or foundations, they play only a supporting political role – outside campaigns. During political campaign, the political players organize in very small groups, very centralized, so they are effective. During electoral campaign, NGOs do not really exist as political actors.”


        Peer reviewer comment: Agree - As noted above, think tanks and institutes contribute with ideas and training to accountable candidates and political parties. Maybe we will have to investigate whether there paying surveys or other services for certain campaigns, but there have been no complaints about it.

        Scoring Criteria

        To answer this question please: 1) list the types of third-party actors that exist in your country and describe how they work to influence campaigns, 2) explain how important such actors are or not in the context of campaigns, including whether their expenditures are substantial in relation to that of political parties and individual candidates, and 3) if documented evidence indicates they circumvent laws intended to regulate political finance, please explain how and include references to the evidence.

        Sources

        I. Interviews: Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet. Interviewed on July 29, 2014.

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales. Interviewed on August 1, 2014.

        Francisco Vidal, ex Minister between 2003 and 2006 and 2007 and 2010. Interviewed on August 12, 2014.

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago. Interviewed on July 30, 2014.

        Christoph Schiess, entrepreneur and investor in Chile, interviewed on September 13, 2014.

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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    Monitoring and Enforcement

    More about category
    composite
    83
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      Monitoring Capabilities
      More about category
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        38
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        YES
        In law, political finance information is monitored by an independent oversight authority.More about indicator

        The Chilean Electoral Service is independent and mandated to monitor and audit political finance information (see law 19.884, articles 43 - 47).

        Article 57 of law 18.556 specifies the creation of the Chilean Electoral Service as an autonomous body. Furthermore, article 62 of the same law describes the election of the directive council of this institution: it will be composed by five directors appointed by the President of the Republic, prior agreement of the Senate adopted by three-fifths of its members.

        Nevertheless, it should be mentioned that the autonomy of the Electoral Service in Chile is not anchored in the Constitution, and that its budget must be negotiated year by year as part of the annual budget law. Audits are restricted to accounting audits, without the possibility to compare estimations of real electoral expenses with the expenses declared in the official reports of the candidates, but the Service is empowered to demand more information from candidates and parties in regards to their submitted reports. Article 6 of law 19.884 also empowers the Electoral Service to carry out investigations when potential violations of political finance regulations are reported.


        Peer reviewer comment: Agree. Law 19.884 mandates the Electoral Service to review the accountability of candidates and political parties after elections, and also to review the annual accounts of political parties. In an interview in 2009 with the Deputy Director of the Electoral Service stated that this was a responsibility which was added to the service, without adding additional human and economic resources when law 19.884 was created.

        Scoring Criteria

        A YES score is earned where: 1) an independent oversight authority is mandated to monitor political finance information, and 2) the authority has investigation and audit powers.

        A MODERATE score is earned where the independent oversight authority is mandated to monitor political finance information, but doesn't have investigation or audit powers.

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.556 about electoral inscriptions, and about the constitution and operation of the Electoral Service. (in Spanish: “Ley 18.556 Orgánica Constitucional sobre Sistema de Inscripciones Electorales y Servicio Electoral"). Article 57. Published in October 1986. http://www.leychile.cl/Navegar?idNorma=29951

        II. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 6, 43-47. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        Reviewer's sources: Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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        YES
        In law, high-level appointments to the oversight authority are based on merit.More about indicator

        The appointment of the Director of the Electoral Service are based on merit in a public appointment process, regulated via article 67 of law 18.556 and title VI of law 19.882.

        The appointment process is organized by the Directive Council of the Electoral Service, which is composed by five directors appointed by the President of the Republic, upon the prior agreement of the Senate and approved by three-fifths of its members. Therefore, the Council is politically diverse.

        Article 63 regulates prohibitions for members of the Council and for the Director. In the last 5 years prior to contraction, they cannot have been in charge of positions that were assigned via public elections, or positions as Minister, second Minister, regional Governor (“Intendente”), local Governor (“Gobernador”), and they cannot have been board member of a political party. While working for the Electoral Service, the Director and members of the Council have to decline temporarily to be members of their party, as well. Other conflicts of interest due to personal loyalties are not explicitly mentioned, but due to the characteristics of the Directive Council, it is highly probable that they are considered during the election process. Article 63 also mandates that appointees to the Electoral Service must have a professional degree and no less than five years of work experience, among other requirements.

        On the other side, the principle of probity in the public sector is fully applicable for members of the Electoral Council (article 8 of the political Constitution. According to article 52 of the law No. 18.575, that means an honest and loyal performance of state functions, with pre-eminence of the general interest over the individual one. Furthemore, article 59 of the cited law No. 18.575 regulates that high level employees of the public sector must declare their income and wealth - information that is considered as public in Chile.


        Peer reviewer comment: Agree. The appointment of the Director of the Electoral Service are based on merit in a public appointment process, regulated in law 18.556. The process is organized by the Directive Council of the Electoral Service, which is composed by five directors appointed by the President of the Republic, upon the prior agreement of the Senate and approved by three-fifths of its members.

        Scoring Criteria

        A YES score is earned where: 1) high-level appointments must be based on merit in a public appointment process; and 2) appointees must be free of conflicts of interest due to personal loyalties, family connections, political party affiliations, business partners or other biases.

        A MODERATE score is earned where high-level appointments must be based on merit in a public appointment process, but the regulations don't forbid appointments involving conflicts of interest or other biases.

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.556 about electoral inscriptions, and about constitution and operation of the Electoral Service (in Spanish: “Ley 18.556 Orgánica Constitucional sobre Sistema de Inscripciones Electorales y Servicio Electoral"). Article 61, 62, 63 and 67. Published in October 1986. http://www.leychile.cl/Navegar?idNorma=29951

        II. Law 19.882 on new management of state employees . (in Spanish: “Ley 19.882 regula la nueva política de personal a los funcionarios públicos que indica"). Title VI on public appointment process for high level employees. Published in June 2013. http://www.leychile.cl/Navegar?idNorma=211480

        III. Law 18.575 Constitutional Organic Law on the General Principles of State Administration. (in Spanish: “Ley 18.575 Orgánica Constitucional de Bases Generales de la Administración del Estado"). Articles 52 and 59. Published in August 1986. http://www.leychile.cl/Navegar?idNorma=29967

        Reviewer's sources: Law 18.556 about electoral inscriptions, and about constitution and operation of the Electoral Service (in Spanish: “Ley 18.556 Orgánica Constitucional sobre Sistema de Inscripciones Electorales y Servicio Electoral"). Article 61, 62, 63 and 67. Published in October 1986. http://www.leychile.cl/Navegar?idNorma=29951

        Law 19.882 on new management of state employees . (in Spanish: “Ley 19.882 regula la nueva política de personal a los funcionarios públicos que indica"). Title VI on public appointment process for high level employees. Published in June 2013. http://www.leychile.cl/Navegar?idNorma=211480

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        100
        In practice, to what extent are high-level appointments to the oversight authority based on merit?More about indicator

        There is an advertised competition and public vetting process, regulated by article 48 of law 19.882, and all public proceedings are posted on the Civil Service website (see sources).. In general, candidates with the most merit and without conflicts of interest on a political level are appointed (see attached the last public vetting to search the National Director of the Electoral Service, defining clear criteria for the appointment). All candidates must submit a declaration of income and wealth once employed.

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago, says: “Yes, I think, in general, appointments for the Electoral Service are – and will be - based on meritocracy, as the system works today. The fact that there are persons of different political tendencies, in the Directive Council of the Electoral Service should ensure that people arrive there on their merits rather than on political reasons.”

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales, says: "Now the Electoral Service is in the process of election of its new director. There are five candidates - and I believe that the existence of the Directive Council as collegiate body on top of the Electoral Service will protect the decision-making process and ensure that the best candidate is selected."

        Scoring Criteria

        A 100 score is earned where: 1) there is an advertised competition and public vetting process, 2) candidates with the most merit and without conflicts of interest or other biases are appointed.

        A 50 score is earned where the public competition is usually advertised and the vetting process public, but exceptions exist. A 50 score is also earned where candidates with the most merit and without conflicts of interest or other biases are appointed but exceptions exist.

        A 0 score is earned where there's rarely or never a public competition, or appointees are rarely selected on merit or without conflicts of interest or other biases.

        Sources

        I. Website for public proceedings in Chile: http://postulacionesadp.serviciocivil.cl/ANTARES_HN/

        II. Information published in El Mercurio, regarding the employment of the new Executive Director of the Electoral Service in Chile: "Challenges for the new elected Director of the Electoral Service" (In Spanish: “Metas estratégicas y reforma electoral, los principales desafíos para el nuevo director del Servel”), Franco Rienzi, August 15, 2014. http://diario.elmercurio.com/2014/08/15/nacional/politica/noticias/b1b75007-17d8-4628-8a40-b6c19456e102.htm

        III. Interviews: Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei in 2013 . Interviewed July 30, 2014. Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales. Interviewed August 1, 2014.

        IV. Secondary source: Law 19.882 on new management of state employees . (in Spanish: “Ley 19.882 regula la nueva política de personal a los funcionarios públicos que indica"). Title VI on public appointment process for high level employees. Article 48. Published in June 2013. http://www.leychile.cl/Navegar?idNorma=211480

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        MODERATE
        In law, the independence of high-level appointees is guaranteed.More about indicator

        Chilean law guarantees the independence of the National Director of the Electoral Service. Article 57 of law 18.556 specifies the creation of the Chilean Electoral Service, as an autonomous body. Furthermore, article 62 of the same law describes the election of the directive council of this institution: it will be composed by five directors appointed by the President of the Republic, prior agreement of the Senate adopted by three-fifths of its members. Article 62 of law 18.556 fixes that Counselors will last eight years in their position as Counselors and may be appointed for one other term. This Council is politically diverse, and has the power to employ the national Director of the Service by a public vetting process. The Council has also the power to remove the Director (Articel 67 h of law 18.556), who has no security of tenure. For the Director, there are no fixed terms specified in the law.

        The Director does not need to seek approval by the executive or the legislature to make decisions.

        The budget for the Electoral Service is set by the government each year, which limits its independence. For 2014, the budget for the Electoral Service is Ch$ 7.725.654.000 = US$ 13.482.817 (1 US$ = 573 CH$). The cost structure of the Service might be too rigid, regarding staff employed on rigid contracts. Indeed, it is not easy to act independently as National Director without having a more flexible budget.

        Scoring Criteria

        A YES score is earned where: 1) appointees have the authority or mandate to review cases and issue decisions, 2) the law establishes security of tenure, and 3) removal or disciplinary actions are based on due process conducted by a peer panel or independent oversight body.

        A MODERATE score is earned where appointees have the authority or mandate to review cases and issue decisions, BUT one of the second two conditions mentioned in the YES criteria is not met.

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.556 about electoral inscriptions, and about constitution and operation of the Electoral Service (in Spanish: “Ley 18.556 Orgánica Constitucional sobre Sistema de Inscripciones Electorales y Servicio Electoral"). Article 52, 62, and 67. Published in October 1986. http://www.leychile.cl/Navegar?idNorma=29951

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        42
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        50
        In practice, to what extent is the independence of high-level appointees guaranteed?More about indicator

        As stated in the answer to indicator 41, the Directive Council of the Electoral Service has the power to remove the Director, who has no security of tenure.

        Patricio Santamaría, President of the Directive Council of the Electoral Service says: "The National Director of the Electoral Service depends on the confidence of the Board of Directors. There is definitely a contradiction in the law: on the one hand, the Director is appointed via a public vetting process, but once employed will depend on the confidence of the Directive Council. What protects the position of the National Director de facto is a high quorum to remove him, requiring the vote of 4 of 5 members of the Directive Council. Nevertheless, there may be a problem about his autonomy that should be considered in future, with the aim to give the National Director more protection and security."

        However, appointees to the Electoral Service operate withour fear, as made evident by the several revisions/audits on the financial statements of all political groups for the 2013 elections--the Electoral Service carried out these audits. Further, the Electoral Service is known to be promoting more transparency in political parties, as well.

        That said, the previous director of the Electoral Service resigned under some duress under some questions about potential bias.

        Scoring Criteria

        A 100 score is earned where all of the following conditions are met: 1) appointees review cases and issue decisions without fear or favor from other branches of government, and 2) appointees are granted security of tenure and 3) no appointees are removed, disciplined or transferred without due process by a peer panel or independent oversight body.

        A 50 score is earned where any of the following conditions apply: 1) appointees generally operate without fear or favor from other branches of government but exceptions exist, or 2) some but not all appointees are granted security of tenure, or 3) appointees are occasionally removed, disciplined or transferred without due process by a peer panel or independent oversight body.

        A 0 score is earned where at least one of the following conditions apply: 1) appointees operate with fear or favor from other branches of government, or 2) are not granted security of tenure, or 3) are usually removed, disciplined or transferred without observing due process by a peer panel or independent oversight body.

        Sources

        I. Interview: Patricio Santamaría, President of the Directive Council of the Electoral Service; interviewed August 14, 2014.

        II. News articles: Pablo Cadiz, "Patricio Santamaria es el nuevo presidente del consejo directive del Servel, tars renuncia de Cheyre," La Tercera, August 22, 2013. http://www.latercera.com/noticia/politica/2013/08/674-539058-9-patricio-santamaria-es-el-nuevo-presidente-del-consejo-directivo-del-servel-tras.shtml

        "Desafios para el nuevo Consejo del Servicio Electoral," La Tercera, February 21, 2013. http://www.latercera.com/noticia/opinion/editorial/2013/02/894-510070-9-desafios-para-el-nuevo-consejo-del-servicio-electoral.shtml

        III. Secondary Source: Law 18.556 about electoral inscriptions, and about constitution and operation of the Electoral Service. (in Spanish: “Ley 18.556 Orgánica Constitucional sobre Sistema de Inscripciones Electorales y Servicio Electoral"). Article 67. Published in October 1986. http://www.leychile.cl/Navegar?idNorma=29951

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        Open Question: How does decision-making work in the oversight authority?More about indicator

        The Electoral Service is guided by a Directive Council of 5 persons assigned by the President of Chile, previous agreement of the Senate. Members of the Council last 8 years, and can be removed only via confirmation by the Electoral Tribunal. There are no special complaints about decisions taken by the Electoral Service within the period of study, though it's criticized for being weak and ineffective.

        The Directive Council meets at least once a month, and its agreements and minutes must be written and signed by all members that assisted. Agreements must be confirmed by at least 4 of 5 members (article 66 of law 18.556). If the Council is not able to find the necessary quorum, it must publish the respective disagreement and argumentations of its members – and find a new quorum of at least 3 of its 5 members in the following session. To employ or to renounce the General Director, the Council must always find an agreement with 4 of its members.

        Patricio Santamaría, President of the Directive Council of the Electoral Service says: “Apart of the first session, the Directive Council does everything by agreement and consensus. My election as President of the Council was unanimous, as well. Nevertheless we are careful to write any comment made by a member of the Council, in the respective minute of the Council, to leave a written record.”

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales, says: “Since 2012 there is a Directive Council at the Electoral Service. Since than, decisions are collegial and not dependent on one person. Generally the person who was there before had some autonomy, but was a person with very little modernization, and therefore, the Electoral Service was very traditional, basically focused on the management of the elections – and not focused on control, financing, maintenance of the official register of voters, and a series of other elements. In other words: in Chile we changed laws during the last decades, we made a more demanding democracy, but we kept our Electoral Service without changes. Than, in 2012, this Directive Council was created. For me the concept of autonomy does not exist because the Council is basically a distribution of power. Autonomy occurs because different political tendencies are represented there. Speaking of autonomy means that there is a politicized collegial body that takes decisions and that gives you guarantees that decisions will be fairer and more impartial. Now, the big problem with the Electoral Service is that this institution has no resources and while no additional resources are assigned, it will remain with very little capacity to control the political system.”


        Peer reviewer comment: Agree - I would add that there is no question of the political independence of the Electoral Service. It is perceived as an institution that organizes elections in a fair and transparent manner. Even when the director was chosen by the president and remained in his position for years, there was no questioning of his independence. In fact, there have never been doubts about their impartiality.

        Scoring Criteria

        Please describe: 1) the composition of the decision-making body within the oversight authority, 2) the type of decisions it's allowed to make and makes in practice, and 3) in which cases majority is required. If there have been well substantiated complaints about the decision-making process being ineffective or politicized please explain.

        Sources

        I. Interviews: Patricio Santamaría, President of the Directive Council of the Electoral Service; interviewed August 14, 2014. Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales; interviewed August 1, 2014.

        II Law 18.556 about electoral inscriptions, and about constitution and operation of the Electoral Service. (in Spanish: “Ley 18.556 Orgánica Constitucional sobre Sistema de Inscripciones Electorales y Servicio Electoral"). Article 66. Published in October 1986. http://www.leychile.cl/Navegar?idNorma=29951

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        100
        In practice, to what extent does the authority have sufficient capacity to monitor political finance regulations?More about indicator

        The Electoral Service gets a special budget assigned during elections. In 2013, for Presidential, and Parliamentary elections, and for elections of the Regional Councils, The Service spent additionally to its regular expenses in 2013 of CH$ 6.796.140.000 (US$ 11.860.628), CH$ 27.721.608.000 (US$ 48.379.770) to manage the electoral process.

        There is sufficient budget to collect and file incoming political finance reports and to recognize when required reports are not submitted. As well, the Electoral Service can employ sufficient numbers of qualified staff to review submitted reports for compliance with basic regulatory requirements.

        Patricio Santamaría, President of the Directive Council of the Electoral Service says: “In the past, the Electoral Service reviewed reports randomly. Now, we are reviewing all reports. Each invoice and each income account is checked. Furthermore, in 2013, in the Directive Council (of the Electoral Service) we took the decision to check in more detail whether expenditures were really related to electoral expenses, and we extended the review of invoices. We also had meetings with the Internal Tax Service to check legality of invoices. Not all invoices we got were stamped, for example. For all this work, in 2013, we employed more than 60 accountants and auditors."

        On the other hand, it should be mentioned that the Electoral Service has does not have the financial capacity to investigate not only the declared electoral expenses and the declared contributions received by candidates and political parties, but also to detect undeclared expenditures and revenues. The control of electoral expenditure and revenue is limited to the review of accounts declared by candidates, as stated as well in an investigation by the Chilean Chapter of Transparency International, and the Inter-American Development Bank, in 2010. The Electoral Service does not check whether accountability fits to reality, and has no possibility to detect unreported expenditures and revenues.

        Scoring Criteria

        A 100 score is earned where: 1) the authority has sufficient budget to monitor all incoming reports, and 2) it has sufficient staff to review all incoming reports.

        A 50 score is earned where: 1) the authority has insufficient budget to monitor all incoming reports, or 2) its staff can only review half of all incoming reports.

        A 0 score is earned where: 1) the authority can't fulfill most of its essential functions due to budget constraints, or 2) its staff only has the capacity to review 25% or less of all incoming reports.

        Sources

        I. Expenses of the Electoral Service: http://www.dipres.gob.cl/595/w3-multipropertyvalues-15460-21672.html

        Electoral expenses and income of candidates (audited by the Electoral Service): Spending during the 2013 elections: https://www.dropbox.com/s/8qlqy0i9bnqsk46/DetalleGastosPresidencialParlamentariasCORE.xls?dl=0

        Income during the 2013 elections: https://www.dropbox.com/s/h738s81p80oh2jn/DetalleIngresosPresidencialParlamentariasCORE.xls?dl=0

        II. Interviews: Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei in 2013 . Interviewed July 30, 2014. Patricio Santamaría, President of the Directive Council of the Electoral Service; interviewed August 14, 2014.

        III. Study on Electoral Services in Latin-America, aiming to control electoral expenses; Luis Gonzalo Urcullo Cossío and Emilio José Moya Diaz, the Chilean Chapter of Transparency International, and the Inter-American Development Bank; 2010. (in Spanish: “Características de los órganos electorales para el control del gasto electoral. Análisis de experiencias latinoamericanas para Chile; ”)

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        100
        In practice, to what extent does the authority conduct investigations or audits when necessary?More about indicator

        Considering that "asking for additional information" counts as an investigative audit for this indicator, the Electoral Service did at least 3 audits. Indeed, maybe for the first time in Chile, in 2013 elections, the Electoral Service played a more active role regarding the accounts of the presidential campaign. It asked candidates and parties for more detailed information on their submitted accounts. The most famous case in the media was a bill of Hugo Boss Boxer Shorts, the purchase of which had been listed as an election expense by one Presidential Candidate (Franco Parisi). The Electoral Service rejected Parisi's expense report as a result. Nevertheless, it is very possible that audits are stronger for parliamentary and presidential elections, than for municipal elections.

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago, says: “I see the Electoral Service modernized in some aspect recently, but still refers to a very basic review of electoral income and expenses, and conducts audits only ex post. In the case of the last campaign, and regarding the accounts presented for candidate Evelyn Matthei, I saw the Service more active, concretely. They asked us for more details on some bills, wanted to know the background of some expenses, and so on. Audits have improved. Before, the Electoral Service accepted everything. Now it questions, researches, and in some cases rejects expenses. They had more impact in the news as well, regarding for example the expenses of Franco Parisi. This at least puts a light yellow so that candidates, in the future, will be more careful. Nevertheless, I see that the Electoral Service influences – at a moment when election is already made…”

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet says (as natural person, - not representing an official opinion): “The Electoral Service does almost nothing of real audits. And sanctions are basically of economic nature, and directed principally to the administrator / manager of the campaign. This is something very terrible, because they normally cannot affect the candidate. I think, we must strengthen the Electoral Service. We should assign more resources to this institution – and could then achieve many things even without a change of law.”

        Francisco Vidal, ex Minister between 2003 and 2006 and 2007 and 2010, says: “Despite its limitations, the Electoral Service conducts increasingly more audits. And it has had its impact, because candidates are more careful, as well. The fact that the Electoral Service rejected accounts in the last election, and that these accounts are published in the newspapers, generates pressure. In fact, the best partners for more transparency are the media.”

        Giorgio Jackson, elected member of parliament fo Santiago center, and ex president of the Student Federation of “Universidad Católica de Chile” (FEUC) 2010-2011, and ex spokesman of the Confederation of Students in de Chile (CONFECH), says: “The Electoral Service made observations on my accounts. In fact, they were right. Regarding the loan I took, there was a difference to declare regarding interests of the loan, - and there was a bill as well, we needed to specify. We send our responses and additional information to the Electoral Service, and everything was cleared”.

        Scoring Criteria

        A 100 score is earned where the authority conducted at least three investigations or audits during the most recent electoral campaign.

        A 50 score is earned where the authority conducted at least one investigation or audit during the most recent electoral campaign.

        A 0 score is earned where the authority didn't conduct any investigation or audit during the most recent electoral campaign.

        Sources

        I. Interviews: Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago. Interviewed on July 30, 2014.

        Giorgio Martelli, Financial Director of the Presidential Campaign of Michelle Bachelet (as natural person, - not representing an official opinion). Interviewed on July 29, 2014.

        Francisco Vidal, ex Minister between 2003 and 2006 and 2007 and 2010. Interviewed on August 12, 2014.

        Giorgio Jackson, elected member of parliament fo Santiago center, and ex president of the Student Federation of “Universidad Católica de Chile” (FEUC) 2010-2011, and ex spokesman of the Confederation of Students in de Chile (CONFECH). Interviewed on August 7, 2014.

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        In practice, to what extent does the authority publish the results of investigations or audits?More about indicator

        There are no reports available to public. They can be requested individually by any citizen via transparency requests, but no comprehensive information is published by the Electoral Service.

        The Electoral Service publishes only a summary press release, and a website that gives information about the status of electoral accounts. They do not present audit reports for the electoral accounts.


        Peer reviewer comment: Agree. By visiting the website of the Electoral Service, you cannot find the information, however, this fact is not new. In the study of 2009, the deputy said that one of the weaknesses of the Service is the little information that is available to the public.

        Scoring Criteria

        A 100 score is earned where the authority publishes reports of all its investigations or audits a month or less after their conclusion.

        A 50 score is earned where reports are available to the public more than a month after the conclusion of the investigation or audit.

        A 0 score is earned where reports are not available to the public or they become available after six months or more after conclusion of the investigation or audit. A 0 score is also earned where only summaries of the reports are publicly available.

        Sources

        I. Infomation presented on the website of the Electoral Service: www.servel.cl - and especially on a secondary website the Service maintains on elections of 2013:

        II. Secondary website maintained by the Electoral Service on the 2013 Presidential Elections http://presidenciales.servel.cl/GastoElectoral/index.htm

        III. Secondary website maintained by the Electoral Service on the 2013 Primary Elections http://www.servel.cl/ss/Satellite?c=Page&cid=1374098174601&pagename=ServelOficial%2FPage%2FSO_Primarias2013

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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      Enforcement Capabilities
      More about category
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        YES
        In law, there are sanctions in response to political finance violations.More about indicator

        Law 19.884 clearly defines violations of political finance laws, and defines sanctions for specific violations, as well.

        Article 27 A defines general sanctions regarding infractions on articles that regulate electoral expenses, private donations, public funding, obligations on transparency (article 21) and general prohibitions. Sanctions are specified for candidates, parties and donors. Sanctions are monetary and are to be imposed by the Director of the Electoral Service.

        Infractions in relation to expenses or income will lead to a payment that will be fixed between 2 or 5 times the amount questioned. Normally, they will be charged to the electoral administrator of the campaigns, who is on charge of accounting. General sanctions move between 5 and 50 UF - a financial unit in Chile (US$ 200 – US$ 2.000).

        Article 5 regulates monetary sanctions if candidates or parties exceed spending limits. Sanctions are only monetary. Candidates or parties are forced pay the amount that exceeds the limit multiplied by 2 if excess is lower than 30%; multiplied by 3 if excess is between 30% - 50%; and multiplied by 5 if excess is higher than 50%).

        Article 31 regulates specific administrative obligations for the electoral administrator of candidates, who is on charge of accounting. Sanctions are monetary and move between 10 – 30 UF (US$ 400 – US$ 1.200).


        Peer reviewer comment: Agree. The law 19.884 establishes penalties for those who violate the rules on financing and electoral expenditure. These sanctions are economic and political in any case. Also here, penalties for electoral administrador, who is responsible for keeping records of the campaigns, are set.

        Scoring Criteria

        A YES score is earned where: 1) the law clearly defines violations of political finance laws, and 2) there are clearly defined sanctions for specific violations.

        A MODERATE score is earned where violations are clearly defined but sanctions for specific violations are not.

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 5, 21, 27, 31, 44. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        Reviewer's sources: Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

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        YES
        In law, the oversight authority has the power to impose sanctions.More about indicator

        The Electoral Service is not required to have approval from neither the executive nor the legislature before fixing sanctions (defined in article 5 bis and 27 A of law 19.884). It has the power to impose sanctions. In case of a appeal, these sanctions can be revised in front of the Electoral Tribunal.

        Furthermore, if the Director of the Electoral Service has access to evidence that there has been committed a crime in the presentation of electoral expenditure and revenue accounts, he / she is forced, by Article 46 of law 19.884, to present the respective case in front of the general justice courts.

        Scoring Criteria

        A YES score is earned where: 1) the oversight authority has the power to impose sanctions, and 2) it can directly prosecute violators before the courts or is independent to send cases to public prosecution.

        A MODERATE score is earned where the oversight authority has the power to impose sanctions, but it can't directly prosecute violators before the courts or is not independent to send cases to public prosecution.

        A NO score is earned where no such law exists.

        Sources

        I. Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 46, 51. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

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        75
        In practice, to what extent do offenders comply with sanctions imposed?More about indicator

        In practice, offenders seem to comply with the sanctions imposed, although it is not possible to get information on all sanctions imposed and fulfilled. There is no specific information available whether parties or candidates have been sanctioned repeatedly.

        Patricio Santamaría, President of the Directive Council of the Electoral Service says: “Sanctions are generally met. Exceptions happen when the ones sanctioned appeal to the Electoral Tribunal (in Spanish: Tribunal Calificador de Elecciones) or when they simply do not comply. In case they won´t pay the sanction imposed, the Electoral Service will apply normal legal procedures to enforce compliance. In this sense, compliance is within the normal standards of our judicial system.”

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei, in 2013 and ex mayor of Santiago, says: “My impression is that - considering always some exceptions - sanctions are non-existent. First, violations of norms of propaganda are normally faults, not crimes. These faults are just going to the courts of local police and stay there… Sometimes the candidate pays the fine without further sanctions. I think that the real sanction is nowadays the social sanction when infractions were published in the media - and that for the first time in this election 2013 the ES rejected expenses. That is the real punishment. When the ES rejects electoral expenses, the candidate will be complicated because normally, he will have contracted a loan and won´t get public repayment for rejected expenses. I think there was a change in this election 2013, that will serve as a lesson for the future.”


        Peer reviewer comment: Disagree. From 2009 research on financing and electoral control spending in Chile (NOTE: 2009 is outside of the study period for this report), it is concluded that in practice there are no sanctions for those who break the law 19.884. In fact there is a list of those who have been punished, and yet there are many candidates and campaign managers that have been interviewed and acknowledged the presence of irregularities.

        Scoring Criteria

        A 100 score is earned where: 1) offenders comply with the sanctions imposed without exception, and 2) they are not repeat offenders.

        A 50 score is earned where: 1) offenders usually comply with the sanctions imposed but exceptions exist, or 2) most are not repeat offenders but some exceptions exist.

        A 0 score is earned where: 1) offenders rarely comply with the sanctions imposed, or 2) most are repeat offenders.

        Sources

        I. Interviews: Patricio Santamaría, President of the Directive Council of the Electoral Service; interviewed August 14, 2014.

        Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei in 2013 . Interviewd July 30, 2014.

        II Secondary Source: Law 18.884 about transparency, limits and control of electoral expenses. (in Spanish: “Ley 19.884 sobre transparencia, límite y control del gasto electoral"). Articles 46 and 51. Published in August 2003. http://www.leychile.cl/Navegar?idNorma=213283

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

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        --
        Open Question: How strong is enforcement, and what impedes more effective enforcement?More about indicator

        Enforcement of political finance law in Chile is less than rigorous.

        The Electoral Service has no ability to control whether candidates and parties receive private contributions outside of their balance sheets (see Investigation of Transparency International, Chile). Audits of the Electoral Service are limited on a conceptual and theoretical revision of balance sheets and income / expense statements. In case of tax fraud or other types of fraud, the respective case would enter in the normal logic of any fraudulent act. Nevertheless, there is no specific criminal sanction for falsification of balance sheets, for example, as stated by Claudio Fuentes.

        It is important to mention that before 2003, Chile had a culture of giving illegally money to politics. In 2003, government legalized donations and introduced co-financing of campaigns via public funds. Since 2003, a lot of private donations to politics got “legalized”. Nevertheless, it should be seen as impossible that changing the legal framework in a country would change habits from one day to the other. In fact, it is common to here that right wing parties accuse left wing parties of channeling illegally funds outside of their balance sheets, - while left wing parties say the same regarding right wing parties. Both sides know that it is still a common practice not to declare all contributions received, because there are no audits that compare accounting to reality.

        Meanwhile, the Electoral Service in charge of enforcement of the political finance law has never had sufficient funds. The institution does not have an adequate budget, not even to execute correctly what the actual law demands, as stated by Patricio Santamaría. The budget might seem sufficient by its amount (around US$ 12 million and US$ 14 million in a non-electoral year), but regarding the existing immobility of staff in the Chilean public sector, in practice it is in fact insufficient. Working seriously on enforcement of the law, would necessitate an increase in the budget of the Electoral Service. As consequence, the Service would be enabled - at least from a financial point of view - to promote a culture of probity and transparency in political players, and to create more awareness in private donors and citizens as well. It should be recognized, that this is one of the explicitly expressed aims of the actual President of the Electoral Service, Patricio Santamaría.

        Additionally, from an institutional point of view, the Electoral Service needs to be modernized, especially regarding the acquisition of the legal mandate to compare political accounting to reality. There should be special criminal sanctions for donors and parties or candidates who move money outside of any balance sheet; furthermore, the Directive Council of the Electoral Service should not have the power to remove the Director, who should have security of tenure. “In theory, there may be a problem about its autonomy”, recognized Patricio Santamaría.

        Additionally, the relation money-politics is sensitive because (i) for most political donations in Chile, citizens don´t know the identity of private and corporate donors, and (ii) because enterprises can be donors, as well. Apart from private donations with public character, there are two types of donations to political parties or candidates (“reserved donations” and “anonymous donations”), that don´t reveal the identity of the respective donors to citizenship. Political parties and candidates can receive these two types of donations up to 30% of a very high theoretical expenditure limit. The consequence is that on average, they count for more than 30% of donations effectively received.


        Peer reviewer comment: Agree - Again referring back to the 2009 study cited below there are four specific areas that should be strengthened: the creation of a sub-election spending unit in the Electoral Service; the elimination of the reserved and corporate donations; increased penalties and responsibility for candidates and election administrators; and full rendering of online accounts for public consultation. These proposed solutions are answers to gaps in our legislation, which relate to the effective control of political financing. For example, there are the fact that reserved donations can be made prevents us from knowing that companies are donating and influencing certain politicians.

        Scoring Criteria

        Please provide a general explanation of the effectiveness of enforcement, describing: 1) any conditions that may prevent effective enforcement, and 2) explain what are the most urgent areas of reform in the country's political finance system.

        Sources

        I. Interviews: Joaquín Lavín, ex presidential candidate, ex Minister and Director of the Presidential Campaign of Evelyn Matthei in 2013 . Interviewd July 30, 2014.

        Pablo Longueira, official candidate for presidency in 2013, ex minister, ex senator; interviewed August 4, 2014.

        Patricio Santamaría, President of the Directive Council of the Electoral Service; interviewed August 14, 2014.

        Claudio Fuentes, PhD in political science from the University of North Carolina (Chapel Hill), author and editor of 11 books and over thirty articles in books and scholarly journals; University Diego Portales; interviewed August 1, 2014.

        II. Interview given by Lucas Sierra, sub director of the think tank Centro de Estudios Públicos (CEP), to Radio Duna, September 3, 2014. Repeated by the online media El Mostrador in http://www.elmostrador.cl/pais/2014/09/03/subdirector-del-cep-dice-que-seria-un-retroceso-si-se-llegara-a-aprobar-indicacion-de-jackson-y-mirosevic-y-justifica-que-empresas-financien-la-politica/

        III. Study on Electoral Services in Latin-America, aiming to control electoral expenses; Luis Gonzalo Urcullo Cossío and Emilio José Moya Diaz, Chilean Chapter of Transparency International, and the Inter-American Development Bank; 2010.

        Reviewer's sources: Gonzalo Urcullo and Emilio Moya (2009), Control of Funding and Electoral Expenditures in Chile, Interamerican Development Bank.

        Study on Electoral Services in Latin-America, aiming to control electoral expenses; Luis Gonzalo Urcullo Cossío and Emilio José Moya Diaz, Chilean Chapter of Transparency International, and the Inter-American Development Bank; 2010.

Chile is a presidential republic with a bicameral parliament. The President is the head of state and the head of government, and is directly elected every four years in a two round voting process. If no candidate receives an absolute majority of the votes cast in the first round, the top two candidates then participate in a run off election. The responsiblity for managing campaign funds in presidential races is shared between parties and candidates.

The legislature is composed of 38 senators and 120 deputies, all of whom are elected based on proportional representation in a binomial system. Senators serve 8 year terms, and deputies have 4 year terms. Two members of each house of parliament are elected in each of Chile's electoral districts--there are 19 senatorial districts and 60 districts for deputies. Candidate nominations are made according to party lists. For each house, each list proposes two candidates for each district. In the case of independent lists, only one candidate is presented. The candidate who is elected is from the list with the most votes, the largest vote winner, and the second elected candidate is from the second most popular list. One exception to this is that, when the first list receives twice as many votes as the second list, both seats will be granted to the first list.

Parties and candidates both manage campaign funds.

Presidential and elections for the Chamber of Deputies occur every four years, and half of the Senate is elected at each four year cycle. The most recent elections were held in 2013.

The 2013 election was an important test for the Chilean political system, since more than 6 million citizens went to exercise their right to vote, but this time voluntarily. This choice not only voted for candidates for president and parliament, but also for the first time, regional councilors voted for. The results of the elections showed that the candidate in the first round of the New Majority and opposition Michelle Bachelet won a vote of 46.67% (21% more than the candidate Evelyn Matthei, official candidate), then placed the PRO candidate Marco Enríquez-Ominami with 10.98% and then peered six other candidates who obtained 17.3%. In this sense, during the ballotaje figures were much more diverse, in fact, the representative of the New Majority candidate got a 62.17% support against a 37.83% of the candidate Evelyn Matthei.

Furthermore, the distribution of forces within the parliament, significantly favoring the members of the New Majority, as they reached 67 seats of the 120 seats available in the Chamber of Deputies; and 21 of the 38 seats in the Senate. In this context the distribution percentages of the Chamber of Deputies are 40.8% to 55.8% Alliance and the New Majority and 3.4% for independent candidates.