Carlos Alberto Alavardo Moya, president of Banco Elca,  is now in the hands of judicial officials following his arrest yesterday at his home in Escazú. Today's Stories: Elca President Arrested More Troubles for Fischel New Medical Exam Proposed for Drivers Weaknesses in the Economy News Briefs

Air Traffic Controllers Strike Continues into Day 26! Striking air traffic controllers say that TACA and an American Airlines flight came close to colliding. Civil Aviation authorities confirmed the near miss, but claim it was a normal incident. A spokesperson for the striking air traffic controllers said that, though they are on strike, they monitor air traffic by radio.

Alvarado is being charged with irregularities with credit lending at the bank that was founded by his father and intervened by the Superintendencia General de Entidades Financieras (SUGEF) and the Consejo Nacional de Supervisión del Sistema Financiero (CONASIF), last June 28.

According to reports, the prosecutor's officer for financial crimes and anti corruption will seeking a preventative detention of one month to a year for Alvarado.

The bank is currently in the hands of government regulators who have 90 days to decide on the fate of the bank.

Regulators have several options available, from finding a buyer to liquidating the bank entirely.

Alvarado was arrested in house in Escazú. Two other members officials of the bank were also arrested - financial adviser, Javier Filloy and a general manager whose identity was not made public.

Wárner Molina, chief prosecutor, indicated that SUGEF found false or inaccurate information that made the bank's 'real' financial position unclear.

SUGEF's investigation uncovered loans to persons or companies with no foundation and with co-signers whose identity was unclear. Investigators found more than 30 companies who benefited from these types of credit.

More Troubles for Fischel
It appears that the calm after storm surrounding the Corporación Fischel and it's invovlement with irregularities at the Caja Costarricense de Seguro Social (CCSS) and it former managers, is nowhere in sight.

An audit of the Fischel books by the accounting firm Deloitte reveals that 24 irregularities at the Corporación that eventually can be problematic for the firm.

One of the irregularities found, was the appearance of more corporations tied to Fischel than had been reported.

One of those corporations or sociedad anonimas (SA) in Spanish is Mefre de Escazú S.A, which records Walter Reiche Fischel, executive president of the Corporación Fischel and who is currently preventative detention for his role in the scandal surrounding irregularities at the CCSS.

Fischel's wife, Karina Echandi Chavarría and other family members appear in other corporations that the accounting firm uncovered during it's investigation.

One major point tying Mefre to the Corporación Fischel is a tranfer of $617.981 Dollars, which was part of a $2.626.972 sale of real estate, which according to auditing firm, the Corporación which never explained.

Another corporation, Consolidado Schmetterling S. A., was uncovered where Emilio Bruce is president, who is also president of board of directors of Fischel. And the another where Walter Reiche and his wif Karina Echandi are involved.

The list of corporations tied to the Corporación Fischel by members of the board of directors and management is long.

The report prepared by Deloitte was made public yesterday, following it being sent to the Superintendencia General de Valores.
 

New Medical Exam Proposed for Drivers
The Colegio de Médicos Cirujanos - College of Medicine and Surgeons -  is contemplating a new medical form to be used for obtaining a driver's license.

The high number of accidents, according to Transit police reports, occur due to driver's suffering illnesses that are not part of the current medical exam to obtain a license for the first time or on renewal.

The Colegio de Médicos Cirujanos made a proposal to the Ministerio de Obras Públicas y Transportes (MOPT) to modify the current exam, which in most cases, is obtained by a paying a fee to a "doctor" in a small office - sometimes located in a booth in a nearby parking lot - near the licensing offices.

Competition for the medical exam document is fierce as doctors use hucksters to solicit business, paying a commission for each customer.

The current exam is a simple one that takes a few minutes. The doctor checks  blood pressure and vision, then asks a series of questions that required on the form, barely looking up at the patient, busy checking off each question. The answers to the questions are based on the honesty of the respondent.

The form is then signed by the doctor and with the necessary "timbres" in place, is submitted to the driver's license office.

Foreigners only have to present the medical form and their country's driver's license to obtain a license to driver in Costa Rica for a period of up to two years. A road test is not required.
 

Weaknesses in the Economy
A lower economic growth than in 2003, together with an inflation higher than expected, are part of the estimates that local and international experts make for Costa Rica by the end of 2004.

These estimates paint a picture of an economy weaker than last year, making it a must to properly meet several challenges in the short and medium terms.

The problems involve an excess cash flow in the financial system, increases in international interest rates, and a growing public debt, due mainly to the payment of interest.

Other challenges include an increasing use of the dollar in normal domestic operations and the stagnation in the demand of credit.

According to authorities, passing the fiscal plan currently discussed at Congress and the approval of the Free Trade Agreement with the United States would contribute to the economic performance of the country.

The manager of the Central Bank, Roy Gonzalez, explained that they are assessing the leading economic variables -inflation, interest rates, credit, and devaluation - in order to make the proper adjustments.

News Briefs

• Costa Rican authorities report that a Nicaraguan army patrol entered from 200 - 300 meters of Costa Rican soil on Wednesday, chasing a Nicaraguan suspected of stealing cattle. The Nicaraguans, according to the Spanish daily newspaper La Nacion, entered Costa Rican territory and were seen leaving by local police officers.
  
  The Nicaraguan soldiers involuntarily entered Costa Rica, getting confused in the chase. Nicaraguan officials offered Costa Rican their apologies and said this was an isolated occurrence. The area of Tabillas, where the soldiers made their mistake, is well known for the illegal movement of people between the two countries.