Costa Rica Digest, Sept. 22

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*News Digest



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NEWS DIGEST
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*Multiple Raids on Fischel by Fiscaliá and OIJ

In an action that began about 9am, yesterday, the OIJ,
prosecutors from the Ministerio Público and auditors
from
the Ministerio de Hacienda, raided the central
offices of
the Corporación Fischel and three warehouses owned by
the
Corporación Cormar, in Barreal de Heredia.

The raids were a continuing part of the raids held on
Monday
at the house of former Fischel manager, Marvin
Barrantes, in
Moravia and the offices of Multiservicios
Electromédicos in La
Uruca.

The objective of the raids is to confiscate documents
relating
to the Finnish credit of $39.5 Million Dollars that
was for the
la Caja Costarricense de Seguro Social (CCSS), of
which some $8
Million Dollars was paid to the Corporación Fischel
as a commission.

The money, according to the Fiscalia (prosecutor's
office) was then

distributed to public functionaries and politicians
as a form of
payoff to approve the credit.

Eliso Vargas, former president of the CCSS and Walter
Reiche
Fischel, president of the Corporación Fischel, are
both in jail
waiting a judge's order for preventive detention
against them,
as well as Corporación Fischel lawyer, Randall Vargas.

Eliseo Vargas and Walter Reiche appeared before a
judge yesterday
to appeal the detention order. The judge's decision
should come
in several days.

Former Costa Rican president Rafael Angel Calderón is
being
implicated in the scandal, for having received a
$440.500 dollars
from Fischel through Panama. Along with Calderón, his
law firm
partner, Gerardo Bolaños is currently under house
arrest for having
received a $90.000 dollars payment and a cousing of
Calderón is
also being implicated for receving $80.000 dollars.

News came yesterday that Calderón paid into court the
sum of $520.500,
the sum equal to the monies received by the Sultana
company in Panama,
that is controlled by Calderón, paid by Harcourt
Holdings, also of
Panama, controlled by Reiche.

The money represents the $440.500 Dollars received by
Calderón and
the $80.000 Dollars paid to Alfonso Guardia on behalf
of Calderón,
who is Calderón's first cousin.

The payment, according to Calderóon is not
restitution or as an
admission of guilt, rather that the money is being
deposited with
the authorities in the event the fiscal (prosecutor)
and a competent
court declares that the money belongs to others -
person or corporation.

Yesterday's police action closed off the corner in
front of the Club
Union, on Avenida 3 and Calle 2 Rica that houses the
main offices of
the Corporación Fischel. More than 30 officers of the
Unidad Policial
de Intervencion (UIP) were stationed outside the
offices and main
Fischel pharmacy, allowing agents inside to complete
their duties.

Emilio Bruce, president of the Corporación Fischel
board of directors,

appeared mid morning to explain to reporters waiting
outside what was

happening inside and at the end of the day, about
6:15pm, he came out
of the building saying that agents were acting in a
professional and

competent manner.

He told reporters that the agents could not complete
their work
and would return today (Wednesday). The building was
sectioned off
and guards were posted.

Bruce made his way into the Club Union building where
a car was
waiting, while a crowd had gathered outside, chanting
"San Sebas",
"Carcel" and "Ladrones" among others.

"San Sebas" refers to the San Sebastian jail where
Corporación
Fischel president, Walter Reiche Fischel and lawyer
Randall Vargas
are being held.

Bruce was unmoved by the crowd and chants, taking the
opportunity
to 'shine' for news cameras and photographers.

While the agents were busy at the Fischel officers,
other agents
were sifting through the storage warehouses of the
Corporación
Cormar, where it is beleived Fischel stored it's
documents.

Authorities were clear to point out that the
Corporación Cormar was
not the object of the raid, just the documents
pertaining to Fishel.
Judge David Hernández and Fiscal Carlos Meléndez
ordered some 3.000
boxes which are believed to contain documents
relating to the Fischel
-Caja case.


*Storms leave 13 dead in Panama

At least 13 people were killed and 11,700 displaced
due to floods
caused by heavy storms and hurricanes hitting Panama
since last
week, according to the Civil Protection authorities
on Tuesday.

Two bodies were retrieved over the past hours and
three people
were still missing following the rain. The families
of the missing
people have asked the National Civil Protection
System (SINAPROC)
to keep on searching for them.

The government said the rains caused floods and
landslides that
destroyed 281 houses in different parts of the country.

Panama's Housing Minister, Balbina Herrera, said that
by the end
of the year the government will help those displaced
settle down.

The rains lasted from Thursday to Friday, but stopped
in the
following days.

Panamanian President Martin Torrijos declared a state
of emergency
in the flooded areas last week.

During the past 10 days, hurricanes Ivan and Jeanne
have battered
Grenada, Jamaica, Cuba, Haiti, the Dominican
Republic, Panama,
Cayman Islands and the Bahamas.






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