Although the transaction was not completed – the payment was never made, nor was the transfer registered – the court later accepted the requests and voted 8-2 to remove the senator from office.
In law, “celebrating” a contract means formalizing it according to the law, that is, it validly signs it so that it can produce legal effects.
It is not necessary for the contract to be executed (for example, paid or registered): it is sufficient for the parties to sign it in the required form (such as a public deed, in case of property sales).
In the case of Isabel Allende, the Constitutional Court ruled that the contract was entered into with the signing of the public deed before a notary, even if the transfer of property was not completed.
Therefore, it was found violation of article 60 of the Constitution, which prohibits parliamentarians from entering into contracts with the State, without the requirement of fraud, economic benefit or subsequent execution.
Political impact
Isabel Allende’s resignation – one of the most emblematic figures of the Socialist Party, with over 30 years of parliamentary experience – had a deep political impact.
The decision adds to a series of consequences for the Executive Power: the resignation of the Minister of Defense, Maya Fernández, the departure of the Minister of National Heritage, Marcela Sandoval, and the resignation of at least seven employees linked to the operation.
Several party figures in power expressed support for Allende, highlighting and celebrating his career.
The interior minister, Álvaro Elizalde, described the fact as “a great loss to Congress” and lamented that the potential unconstitutionality of the contract was not highlighted in time.
In opposition, however, the decision was celebrated.
Republican party leader José Antonio Kast said the decision “reaffirms that no one is above the constitution” and even pointed out his finger at President Gabriel Boric, whom he accuses of politically promoting the purchase and sale.
The court’s decision has not yet been formally published, but the plenary’s decision has already been adopted. Once notified, the Senate must declare the vacancy, and the Socialist Party will appoint a substitute.
At the same time, a criminal investigation is still underway to find out if there was tax fraud in the failed operation.
