[quote]Chile: Fraudulent privatization
Noticias Aliadas. Aug 18, 2005
Chile lost US$6 billion for the privatization of public businesses during the dictatorship of Augusto Pinochet (1973-90), according to a report of an investigative committee of the Chamber of Deputies released July 20.
Some 700 public companies were sold at glaringly low prices, and the sale of 30 of the largest businesses generated losses of $2.2 billion then — $6 billion currently. The document also mentioned the sale of 15,888 government buildings, 11,000 of which ended up in private hands.
The report states that "the entire privatization process was developed in Chile with ad hoc laws," created by legislators who later used the privileged information to "buy the properties at a lower price."
"There have been economic groups before that were strengthened, particularly
a group of technocrats with a clear political orientation who were certainly involved with the companies, and it has created a strong influence in the management of these resources," said Deputy Carlos Montes, who headed the investigative committee.[/quote]
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