MOP-Gate case

The MOP-Gate case (Caso MOP-Gate), was a high-profile investigation initiated by Judge Gloria Ana Chevesich in 2003. The case exposed widespread corruption within the Ministry of Public Works (MOP) in Chile, involving the embezzlement of funds and irregularities in the awarding of contracts.

The investigation revealed that contractors had received approximately 1,250 million Chilean pesos (equivalent to approximately 415,000 USD at the time) from the MOP for works that were either non-executed or overpriced. Instead of being used for their intended purposes, the funds were diverted to Gate ("Gestión Territorial y Ambiental"), a consulting firm that distributed the money to 129 MOP clerks as "extra money."

As a result of the probe, a total of 22 individuals from both the public and private sectors were charged with various crimes, including defrauding the state, fraud, and residual fraud. The case remained in the headlines for several years, with supporters of Judge Chevesich commending her efforts to combat corruption within the government, particularly under the administration of the Concertación coalition. However, detractors dismissed the case as a politically motivated witch hunt.

Following a seven-year investigation, several individuals were convicted. The head of the Ministry of Public Works, Carlos Cruz, was sentenced to three years in prison and ordered to pay damages of 800,000,000 Chilean pesos (approximately 1.6 million USD) to the Chilean State. Other convictions included Sergio Cortés, the director of Concessions, who received a three-year sentence, Eduardo Balbontín and Gonzalo Castillo, former director of the Directorate of Hydraulic Works and the MOP Undersecretary's chief of staff, respectively, who received sentences of 61 days each. Nazir Sapag, the former director of CIADE at the Universidad de Chile, received a 200-day sentence, while Óscar Peña Véliz, the owner of Gate consulting, and Óscar Araos were sentenced to 61 days and 541 days, respectively. All jail sentences were suspended.

As a result of the MOP-Gate scandal, significant reforms were implemented in Chile. In 2004, the Alta Dirección Pública (ADP), or Public High Management, was established as a crucial step toward creating a professional and merit-based civil service. The ADP was a direct response to the political consensus reached after the scandal, aiming to reduce the number of political appointees in public administration and improve efficiency and transparency. The "New Deal" law, passed in 2003 during the government of Ricardo Lagos, provided the framework for these reforms and sought to enhance the integrity and effectiveness of the public sector.