Judge charges Corfo executive with gross negligence

Chilean judge Patricio Villarroel has charged former deputy manager of financial resources at local state industry promotion agency Corfo, Nelson Perez Baladron, with "gross negligence," local daily La Tercera reported. According to Villarroel, this form of resolution impedes public office operations and will include a financial obligation on the part of those held responsible. Within the former management structure at Corfo, Perez held the post directly superior to former money desk manager Javier Moya, currently indicted as part of an investigation into the theft of 70bn pesos (US$95mn) in CDs from the agency's vault. The scandal began in March when Chilean financial group Inverlink executives were arrested on charges of spying on the central bank as well as the theft of CDs from Corfo. The sale of the CDs and the subsequent confusion as to whether the government or banks would have to honor them practically paralyzed financial transactions for several days in mid-March. The Corfo-Inverlink-Central Bank scandals prompted the resignations of Corfo VP Gonzalo Rivas, central bank chairman Carlos Massad and securities and insurance regulator Alvaro Clarke.