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President Rodrigo Chaves / Photo via Casa Presidencial.

Costa Rica's President complains on Social Security's alleged fraud investigation



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Published on Thursday, September 26, 2024
By the A.M. Costa Rica staff




On Wednesday, during a press conference at the Presidential House, in San José, President Rodrigo Chaves-Robles addressed the Prosecutor's Office's inquiry into an alleged  Social Security potential fraud.



Chaves complained about the arrest of the Social Security president, as part of an investigation into an alleged $230 million fraudulent scheme.



Chaves stated the Prosecutor's Office's process for arresting Marta Esquivel-Rodriguez, the president of Social Security, was wrong and that Attorney General Carlo Díaz-Sánchez knew it was a mistake. "It is rather simple for him to order the arrest of a woman who has willingly consented to go before the Judicial Investigation Organization to face the investigation," he said.



He complained about the judicial procedure in taking Esquivel from the Judicial Investigation Organization offices in Perez Zeledon Canton to the organization facilities in downtown San José, in a police van with a separate compartment in the back used to transport criminals, "as if she were a member of a drug trafficking organization was a cowardly move," Chaves added.



The president was emphatic in his claim that the Prosecutor's Office actions were like putting on a show planned to use force to spark a scandal. "Is it necessary to arrest someone like that?," Chaves questioned. 



The president urged Attorney General Carlo Díaz to justify why this case was "investigated so rapidly publicly." Why were these eight persons arrested so fast (referring to the president of Social Security and members of the Board) without first conducting an investigation and gathering convincing evidence?," he noted.







Chaves declared his full support for the Social Security president by saying that Esquivel is "a brave woman" and "whom the Costa Rican people recognize for her outstanding service."


Costa Rica's president challenged the judicial authorities by questioning if the next move would be raiding his house.


The case began when the Social Security Board of Directors annulled one agreement for choosing contractors for managing at least 138 public clinics known as Ebais.


The Deputy Prosecutor's Office for Probity, Transparency, and Anti-Corruption (FAPTA) investigation found that after allegedly annulling that agreement, the defendants used their board positions to create a new deal to hire cooperatives that would benefit from that second contract.


The suspects allegedly changed the agreement despite being aware of a previous study that determined that the cooperatives that would be hired would result in an annual increase of more than $23.9 million per year in the current cost that Social Security pays to the private companies in charge of the Ebais managing.


The prosecution is also investigating the shift in the new businesses' contractual lengths, as the Costa Rica Public Procurement Law says that contracts cannot last longer than four years, while the new agreement was signed for ten years.


If the new contract is fulfilled within ten years, the estimated cost of the alleged fraud against Social Security would be approximately $239 million.


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What have you heard about your country's highest-ranking politicians being linked to Public Treasury fraud? We would like to know your thoughts on this story. Send your comments to news@amcostarica.com



  


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