Friday 27 February 2009, San José, Costa Rica

 
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Scotiabank in Costa Rica To Cut 200 Jobs
Costa Rica Seeks IMF Credit Line to Shield Economy
Minister Arias In Hot Water Over Alleged Misuse of BCIE Funds
State Banks Loosen Strings On Personal Loans
Informational Workshop About China Free Trade Deal Held in Guanacaste

Minister Arias In Hot Water Over Alleged Misuse of BCIE Funds

Rodrigo Arias, Costa Rica's ministro de la Presidencia and brother to president Oscar, is being investigated by the Contraloría General de la República (Comptroller's office), for the poor management of consulting contracts paid for with funds of the Banco Centroamericano de Integración Económica (BCIE).

The Comptroller indicates in two reports that in 2007 a number of consulting contracts paid for with BCIE funds went with little or no control.

The controversy is over us$2 million dollars donated by the BCIE and spread around in various small contract to friends.

Arias, in a press conference late Thursday said he is aware of the investigation against him, an investigation that could cost him his post, and has filed a "recurso de amparo" (writ) with the Sala Constitucional (Constitutional Court) and that the investigation should stop until the court rules on his writ.

Arias added that with the rise of the controversy the ministerio de la Presidencia will no longer be handling BCIE funds.

Minister Arias, in his defence, told the press last night that the Contraloría said on October 22, 2008, that money from the BCIE were not public funds and thus were not under the supervision of the Contraloría, which is now changing its opinion and claiming the funds public.

The contradiction, according to Arias, is that the Contraloría now says the BCIE funds are public.

 
 
 
 
     
 
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