SANTIAGO, Chile, Feb. 16 (UPI) -- Sebastian Davalos, son of Chilean President Michelle Bachelet, has resigned from his position as the director of a government foundation amid allegations of using his influence to receive bank loans.
Davalos resigned from his position as the director of sociocultural areas of the presidency on Friday.
He and his wife were accused of using his political influence to receive a $10 million loan from the Bank of Chile for a company called Caval Ltd., which is half-owned and run by his wife.
The money was used to buy land in Chile, which was then sold again for profit. The national bank regulator in Chile declared nothing illegal occurred, but the issue still created a political scandal.
"I categorically reject the publication of false information about supposed comments made by me and members of my family," Davalos told the media at Chile's presidential palace. "I wish to emphasize that I have committed no illicit activity or crime, as some of the media have suggested."BioBioChile reads.
Davalos apologized for his actions and for the harm he created to the reputation of the Chilean government and his mother during "this bitter moment."
He said he resigned to help repair the "damage to the president of the republic and government, who have my total and absolute loyalty."