In the Costa Rican News - August 07

Ex Costa Rican President Finally Charged

The year2004 saw a government corruption scandal came to the boil in Costa Rica, making headlines across the globe. Some three years on and the Chief Prosecutor’s Office has finally filed charges against the Former President, Miguel Angerl Rodriguez who was in power from 1998 till 2002. Another 10, unnamed people have been charged also.

Although the exact details of the charges have been kept under wraps, it is thought that the former president is likely to be faced with aggravated corruption and illicit enrichment for alledgedly receiving more than $800,000 in bribe style handouts fro the Alcatel, the French Telecommunications company, in order to gain a $149 Million contract to provide GSM Cell phone services to the Costa Rican Electricity Institue(ICE).

On top of the charges that the Chief Prosecutor’s office are bringing against the former President, the ICE have been given until today to decide as to whether they themselves will also file a private prosecution for the damage done to themselves, and/or an “accion civil resarcitora” which is a civil case seeking monetary compensation for damages that may have been taken.

There is also speculation of other dealings with the Taiwanese, where it is alledged that Rodriguez revieved $1.4 Million in a separate incident. He claims that this was not for personal use and that it was a $2 Million “Loan”. However the cheques were paid into a Panamanian Bank and totaled $1.4, so something clearly doesn’t add up!

It seems that Rodriguez’s behaviour and the many other scandals over the years that have seen presidents involved have not only damaged their reputations, but has also caused people to loose faith in politics altogether. This was illustrated in the elections last year when over 35% of Costa Rica’s voting population decided to stay at home on polling day, giving up their right to influence who runs the country.

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Free Zone Trade Inscentives Extended once again!!!

As with many developing countries across the world, Costa Rica has Free Zones. These Free Zones provide businesses who set up their and invest in the local surroundings and Costa Rica as a whole and then export the majority of the goods out of the country, with tax breaks. These tax breaks are what attracts foreign investment into the country or allows native businesses to compete in the global market.

In 1995 the World Trade Organisation (WTO) imposed a legislation that these Free Zones must be ended in all countries across the world by 2003. This was then extended to 2009 and once more in the last week it has been extended. The new deadline is now 2015, and is thought that this is the definitive deadline, there will be no more extensions cropping up in the future!

This is great news for Costa Rica as it brings with it much needed breathing space, and a much more attractive time scale for businesses to work with when considering entering a new country such as Costa Rica. They now have another 9 years to set up, begin operation and become competitive before their tax breaks end, meaning that they will have to look at other ways in order to maintain competitive, yet profitable. This 9 years looks much more attractive than the previous three that were left to run before the extension.

Lets hope for some more investment to help Costa Rica’s economy develop even further over this time!!

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August Exchange Rates

The Exchange rates below are not accurate on a daily basis but just an approximation for your benefit. For more up to date exchanges rates please visit your local bank or online with a currency seller.

Costa Rican Colon

1032.94 695.096

516.62

US Dollar

2.043 1.378 1.00

 

Usually in Costa Rica US Dollars or Costa Rica Colones can be used. in popular areas and in larger shops US dollars will be more widely accepted. However in small towns and locally run stores only Colones will be accepted.

This news was written by Paul Smith a specialist Wen Consultant for Holidays in Costa Rica.

If you want to reproduce this article please make sure you provide a back link to Holidays in Costa Rica

 
     
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