Santiago de Chile, July 07 (teleSUR-RHC) The Chilean Supreme Court opened an investigation on Monday into two former collaborators of late dictator Augusto Pinochet for tax offenses linked to alleged diversion of funds from companies for financing political campaigns.

Jovino Novoa, the former deputy labor secretary and founder of the conservative Independent Democratic Union party — the closest political party to Pinochet — and his colleague, Alberto Cardemil, were indicted for taking bribes.

Meanwhile, a federal judge ruled on Monday that Novoa and Cardemil should face house arrest. Their lawyers announced they would appeal. Novoa is also investigated over the so-called “Penta case,” a corruption scandal that has embroiled numerous politicians across the political spectrum of the country. The case involves allegations of irregular financing of political campaigns through the Penta Banking Group, mostly for a number of conservative politicians.

Last month, Chilean prosecutors announced the beginning of an investigation into conservative politicians over alleged tax fraud. The government sent a bill to Congress in order to demand more transparency from political parties.

Authorities in Chile are trying to tackle the rampant corruption brought to light by the series of recent scandals. President Michelle Bachelet’s son, Sebastian Davalos, was also accused of using his influence to secure a bank loan from Penta. The scandal has become a blight in president's new term.