As Crisis Unfolds Over Fund E, AFP Association President’s Son Joins Government Communication Team

Original article: En plena crisis del Fondo E: hijo del presidente de la Asociación de AFP trabaja en equipo de vocerías del Gobierno de Kast

As the crisis surrounding the collapse of Fund E continues, it has come to light that León Fernández de Castro Fresno, son of León Fernández de Castro Peñafiel, president of the Association of Pension Fund Administrators (AFP), is currently working in the General Secretariat of the Government (Segegob), the department responsible for managing the government spokesman team of José Antonio Kast.

This revelation emerged from a Fast Check investigation amidst controversy over massive losses of $7.7 billion in pension funds linked to U.S. interest rates, with a projected overall impact exceeding $11 billion on pension savings. The Fund E, deemed the most conservative fund in the system, and home to approximately 770,000 affiliates, suffered a real drop of 10.4% between January and September 2026, marking its second worst performance on record.

Given this context, the close family connection between the president of the association representing pension fund administrators and a government advisor—whose duties involve producing content for the official communications of the Kast administration—has raised significant concern as the government confronts the pension crisis.

Supporting Decision Making and Institutional Strategy Design

According to the cited media, the journalist from Universidad de los Andes serves as a content advisor in the Segegob, responsible for preparing briefings and contingency analyses to aid the ministry’s communication planning, preparing spokespersons, and decision-making in matters of public interest.

As per the monthly activity report for September, Fernández de Castro is tasked with certain responsibilities, including delivering systematized information for institutional strategy design.

The document referenced by Fast Check indicates that this work facilitates the timely identification of key agenda items, their potential vulnerabilities, communication risks, and impact for government action, producing inputs for decision-making, preparing spokespersons, anticipating scenarios, and team coordination during periods of public interest.

As per Transparency records from the Segegob, Fernández de Castro Fresno holds a contract for services valid until December 31, 2026 and receives a salary of approximately $2.5 million.

The professional possesses previous experience at consultancy firms such as Azerta and Nexos, and joined La Moneda while Mara Sedini was serving as the general secretary of government, prior to Claudio Alvarado taking over as Minister of the Interior and head of the General Secretariat of Government.

Did He Participate in Handling the Pension Crisis?

In response to the losses recorded in pension funds, especially in Fund E, La Moneda’s first reaction was to connect the crisis to decisions inherited from former President Gabriel Boric’s administration.

However, Finance Minister Jorge Quiroz opted for a change in narrative and shifted blame onto the AFPs for the crisis. He even expressed support for the sanctioning procedures initiated by the Superintendence of Pensions against the seven pension administrators to investigate possible violations of Article 147 of Decree Law 3,500 and General Character Norm N° 340, issued in July 2025, as well as to determine potential accountabilities for investment decisions that particularly impacted Funds D and E.

In light of the situation, AFP Association President León Fernández de Castro Peñafiel defended the operations of the administrators, asserting that «no outrageous or illegal actions have taken place».

He also confirmed his relationship to the Segegob advisor and denied using that relationship to interfere in government matters, stating to Fast Check that «León Fernández de Castro Fresno is my son».

However, he refuted having discussed the current pension controversy with him.

«I have had no contact with him regarding the current situation. Our family relationship is strictly personal and entirely independent of my professional responsibilities. I have never used this connection to access confidential government information nor to conduct dealings related to the AFP’s operations,» he stated.

Although the investigation noted that the advisor participated in 2023 in a lobbying meeting with the former president of the same association now led by his father, it indicated that it remains «unclear whether the journalist was involved in the pension crisis».

When contacted by Fast Check, Segegob clarified that Fernández de Castro Fresno «was part of the management team under former minister Sedini and is currently performing content duties for the undersecretary». They also noted that he is not a member of the working circle of the current biminister, specifying that «he is neither part of his team nor performs functions for him».

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