The Public Prosecutor's Office has formally charged Marcelo Parra Muñoz, Chief of Staff to La Araucanía Governor René Saffirio, with subsidy fraud. During a hearing before Guarantee Judge Marcia Castillo, a nationwide travel ban was imposed on the official.
The investigation stems from an anonymous tip filed in 2023. The case involves a grant from the Municipality of Temuco exceeding $8 million, which was awarded to the Karukeché Foundation to implement a recycling project.
Prosecutor Luis Arroyo alleged that public funds were diverted for private use. According to the indictment, the money intended for the foundation's project was instead used for Parra Muñoz's personal benefit.
CDE Lawsuit and Defense
The State Defense Council (CDE) has filed a formal lawsuit against Parra Muñoz for the crime. The legal action also extends to Luis Fuentes Lobos, who serves as the treasurer for the aforementioned foundation.
The defendant's legal team, led by attorney Carolina Olave, stated that discussions with the Prosecutor's Office are ongoing. The defense aims to reach a conditional suspension of proceedings to close the case.
The court has set a four-month deadline to conclude the investigative phase. The judicial process will determine the official's criminal liability following an analysis of the evidence presented by the Public Prosecutor's Office.