I spent some money from my Indian company's account when I was coming over but I could print out a few documents to prove it and it was done in 20 mins. Atleast that is no longer an issue here.
It does take about a month for the first reimbursement to roll in and you have to manage till then. The account executives (the ones handling your reimbursement) are quite friendly and willing to help (by giving you a date sooner if you are really running out of money etc).
The only case I have heard of someone having to give back money is of a guy who smashed his phone on stage during a presentation and had the cost of the phone, 400 dollars reduced from his $40k grant (or may be next reimbursement). I was not present in that meetup and I have never met the guy.
Startup Chile does have some problems (or starting troubles) but certainly reimbursements is not one of them. Also, they provide a great office space which is a great place to work with your team and meet other entrepreneurs. I would be happy to answer any questions here. Ofcourse, I am only two months into the program so my experience with everything is limited so far.
The hardest part of the entire situation is that we came here to work, not do a song and dance. Even the fact that I feel obligated to post about this on HackerNews is a giant waste of my time, but it will ultimately be good for everyone involved (from the government to the startups) to grow and learn from the discussion.
Perhaps its best to discuss the present or future rather than complaining about the past? They're like any start up - evolving quickly.
This is quite clear now - in our round, it was an "open issue" for 3 months, over which only a select few were able to get a salary (due again to personal relations - I was one of the benefitted ones in that case). So that's "excusable" - they were "figuring it out"