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On Monday, September 19, 2022, President Rodrigo Chaves appointed Marta Esquivel as President of Social Security.    / Photo via Casa Presidencial.

Top Social Security officers could get dismissed over an alleged $230 million fraud investigation



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Published on Wednesday, September 25, 2024
By the A.M. Costa Rica staff




Marta Esquivel-Rodriguez, the president of Social Security, and seven members of the Social Security Board of Directors were released from the Public Ministry's cells in Guadalupe Canton, San José, on Tuesday after being detained for more than 30 hours as part of an investigation into an alleged $230 million fraudulent scheme.



The surnames Camareno, Rojas, Gómez, Araya, Porras, Gutiérrez, and Quirós have identified the other suspects linked to the inquiry. They served on the Social Security Board of Directors for 17 months, from February 2023 to July 2024.



According to the Deputy Prosecutor's Office for Probity, Transparency, and Anti-Corruption (FAPTA), the suspects may face pre-trial measures such as dismissal from their positions of authority, veto from leaving the country, banning from entering Social Security facilities, prohibition from speaking with witnesses and surrendering their passports to judicial authorities.



The court is scheduled to resolve the pretrial measures to be requested by the Prosecutor's Office on Wednesday.



On Monday, the Prosecutor's Office indicted these high-ranking Social Security executives as allegedly being involved in a potential $239 million fraud.



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 Prosecutor's 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.


Furthermore, the legal authorities suspect that members of the Board of Directors met with representatives from the cooperatives about to be hired.


The controversial agreement included Ebais, or public clinics, in the cantons of Pavas, Desamparados, Santa Ana, Escazú, San Francisco, San Antonio, San Pablo, Barva, Tibás, La Carpio, León XIII, San Sebastián and Paso Ancho.



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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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