The program is not bullshit, it's just that the government isn't in the business of throwing money away. There a lot of legitimate startups here that have gone from an idea to a proper product with actual customers. There is, however, a lot of red tape to cut through in order to ensure that money is spent properly, that's why there's so many rules.
It would look really bad if the government of Chile was seen to be funding vacations. Unfortunately, that happens anyway. There are a bunch of people participating in the program that have done fuck all for the last six months and have little more to show for themselves than a Twitter account and some nice photos of the parties they've been to.
"it's just that the government isn't in the business of throwing money away"
In all seriousness, this is why they shouldn't be investing in startups. Early stage investing is all about "throwing away" a bunch of money and (hopefully) making even more back when a subset of your portfolio wins big. If you're micromanaging each dollar/transaction, then you're really, really doing it wrong.
You do realize that VC funds try to invest in startups that have that 1/10 chance of being a massive success. They don't wilfully throw their money at 9 crappy businesses that they don't think will succeed and really just hope for the 1 they think will do ok. It's simply a reality that you can't have 10/10 startups all succeed so they accept the odds.
Saying investing in startups is all about "throwing away" a bunch of money isn't at all accurate.
The government of Chile isn't looking for a cash return on their investment, they're interested in the long term effects of having globally oriented entrepreneurs in the country interacting with future local entrepreneurs.