Air Traffic Controllers Strike Continues into Day
30; May Soon Come to An End
However, good news is that
following the two hour closed meeting between
government officials and striking air traffic
controllers, finally opened a small door that may
soon end the month long strike. And though there was
no agreement reached, at least the silence between
the parties has ended.
Leonardo Guillén, spokesperson for the air traffic
controllers said, "We met on friendly and sensible terms. They (the
government) was to create a high commission with different
representatives; we on the other hand are consenting."
However, what remains a sour point to the striking controller's is
the importation of foreign controllers to substitute them.
28 foreign air traffic controllers and Tico pilots have been
managing air traffic within 60 miles radius of the airport, when air
traffic is then handed over to the Centro de
Control de Radares Centroamericano, known as Cenamer.
Striking air traffic controllers say that the government's action to
replace them with temporary foreign controllers has place air safety
in Costa Rica in danger and several near collisions were experienced
by pilots flying into and out of the Juan Santamaria airport.
The latest reported incident is of an airbus 320 pilot (the airline
was not disclosed) who reproached an air traffic controller when he
found an air taxi at only 100 meters distance, almost causing a
collision. The air traffic controllers deny the incident.
The strike has been over pay equity, where the 125 traffic
controllers are claiming that the government broke it's promise to
pay them 35% higher than civil aviation officials.
Controllers earn between ¢450.000 and ¢700.000 per month, while an
aviation
inspector earns on average ¢865.000.
Affected ar the operation at the three major airports - Juan Santamaría
(Alajuela), Tobías Bolaños (Pavas) y Daniel Oduber (Liberia) as well as
operations at the air traffic control tower.
Colon to
Devalued More Rapidly
With economic stability as it's objective,
the Banco Central de Costa Rica (BCCR) is adopting a "restrictive
monetary" policy to confront rising inflation.
The end result is that most services and good will be more
expensive, including the borrowing of money as the Central Bank
intends to raise short term interest rates for the balance of this
year.
The decision to tighten the belt is the prediction that economic
growth for this year will only reach 3.9% instead of the 4.4%
anticipated. Inflation is also growing, it is expected to
reach 11% by the end of the year, due to a rise in the price of
basic products.
The BCCR also announced that it will devalue the colon more quickly,
from ¢0.15 to ¢0.17 per day, which is expected to round off at ¢460
colones to one US dollar by the year's end.
The average devaluation last year was ¢0.16 daily, according to BCCR
figures.
Francisco de Paula, president of the Central Bank, says variations
internal conditions like the delayed passing of the Plan Fiscal and
the fall of more than 30% of exports during the first six months of
the year are influencing the change in the bank's economic strategy.
Elca Employees
Demanding Salary Increase
While three directors of the intervened Banco Elca sit in jail, 114
employees are asking the Superintendencia General de Entidades
Financieras (SUGEF) to comply with the salary increase corresponding
to private sector employees.
In a press release, Elca employees have asked SUGEF to immediately
apply the salary increase that was due on their 15 July salaries,
that was approved by the government for this half of the year for
all private sector empolyees.
A decision by SUGEF is expected before the 30th of this month, the
next pay day.
Banco Elca was intervened by the SUGEF on 29 June and is now under
the authority of the bank regulator while it determines the fate of
the bank.
Last Thursday, Elca president, Carlos Alvarado Moya, and two other
bank directors were arrested by judicial officials for among others,
irregularities in it's lending portfolio, and ordered to three
months preventive detention while the prosecutor's office
investigates.
4.3
Earthquake Felt in Central Valley
Did you feel it? At 1:57pm an earthquake
registering 4.3 on the Richter scale was felt in the Central Valley.
The epicenter was located some 23 kilometers southwest of Quepos.
The Observatorio Vulcanológico y Sismológico de Costa Rica said that
tremor was felt most in the areas of Golfito, Dominical, Buenos
Aires de Puntarenas, Uvita and San Marcos de Tarrazú.
Villalobos
Update: Meeting with Prosecutors
A report by the UCCR, says, Jose Miguel Villalobos, as
counselor to an Enrique Villalobos investor, recently visited the
offices of Francisco D'Allanesse and met with two top aides of the
General Prosecutor.
The meeting lasted for over two and one-half hours.
It was immediately clear to Jose Miguel that the General
Prosecutor's assistants were very familiar with the themes covered
in Jose Miguel's white paper, Justice, Upside Down, as well as the
current status of the case itself and all it's ramifications.
D'Allanesse was appointed the new General Prosecutor in December of
2003.
Their discussion covered much of the material included in the White
Paper, as well as more recent events. As a result of this meeting,
we can report to you the following information:
- Lead Fiscal Walter Espinoza is the object of two separate internal
investigations.
- Fiscal Espinoza has been instructed to conclude the investigation
and present charges without further delay.
- It now seems quite possible that money laundering, (the most
repeated and vile original suspicion), may not be included among the
charges.
- Finally, the Canadian government has officially informed the
Fiscalia that it has concluded all legal proceedings in related
cases.
Excluding the money laundering charge would be a particularly bitter
irony to all severely affected by this nightmare, since it was this
false accusation which became the central theme in the government's
case and it's justification to raid, impound, and close the offices
and bank accounts of Luis Enrique Villalobos.
The UCCR is extremely pleased with the outcome of the meeting, and
see a positive resolution to the case.
Osvaldo Villalobos continues to remain in preventive detention as
the prosecutor's time is running short. The prosecutor needs to
conclude the investigation and file charges.
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