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>>Costa Rica News Digest<<
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TODAY'S CONTENTS
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*News Digest

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WHAT'S NEW AT THE COSTA RICA PAGE!
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Our real estate section has just been totally updated with lots of
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http://www.destiny-worldwide.net/costa-rica/real.htm

We are adding new things every day, and when our merger comes with
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for you to buy Costa Rican products over the internet from local merchants
[if you have a reputable business here, and want to sell through the
Mercado, just let us know. We can help you to accept credit cards and
all the major e-currencies on the net! We break through the Great Barrier
that many Costa Rican merchants face getting their products on the net!].

Hotels and tourist businesses will be able to add their own links, and you
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Watch this newsletter for our official launch, coming soon!

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FEATURE ARTICLE
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DISCUSSION
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NEWS DIGEST
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*La Prensa Libre
(http://www.prensalibre.co.cr/2004/octubre/29/nacionales07.php in
Spanish)did a story today about ex-President Oscar Arias receiving $1.3

million from the Taiwanese govt.

El Seminario Universidad (http://www.semanario.ucr.ac.cr/pais.html#p3
in Spanish) did a story today about ex-President Oscar Arias' Grupo

Consolidado Sama and it's subsidiary's involvement in the Puerto Caldera

scandal. In addition to Arias, ex-Central Bank president Eduardo Lizano
is also a participant in Grupo Sama.

Yesterday, there was the story asking for explanations of Arias'
involvement in ICE contracts and with the Fabrica Nacional de Licores
and a declaration by a manager at ICE that Arias doesn't have the moral

footing to say anything in the Figueres-Alcatel scandal.


*La Prensa Libre wrote a story today about ex-President Figueres
(http://www.prensalibre.co.cr/2004/octubre/29/economia03.php in
Spanish).

Evidently, only $15k was declared by Figueres in his tax return for
the $900k that Figueres received from Alcatel for his "consultations".
The story goes on to state that Figueres could get 5 to 10 years of
prison if this is proven (fora violation of Art. 81 of the Tax Code) and
a $225k fine.


*Flamingo Marina Resort Commentary

It has been a year and still no results. Most boats are in the
Potrero Bahia they made anchors out of cement drain tubes and filled
them with cement and rolled them out. I notice a yacht now and then
come in but fuel service is limited and you need to use your skiff
at anchor to go ashore. Four boats went down the fishing boat Yahhoo
( I think that is the name) I heard they are not going to rebuild
the engine. A large beautiful sailing yacht which I heard is not
going to be taken up. I could see her mast the next day Saturday. It
was a lot of rain but can not understand how sea going boats
battened down can take on rain and go down in a safe harbour when
they get hit with big waves at sea and stay afloat. I sailed over 15
years around the world three times both canals and seen the damage
that a sixty foot wave can do to a 265,000 DWT tanker with 2 million
barrels aboard.


*Hernán Bravo Avoids Preventive Detention

Former vice president of the board of directors at the Instituto

Costarricense de Electricidad (ICE), who admits to having received
us$800.000 from Alcatel got a break from the Juzgado Penal del II
Circuito Judicial de San José, who notified Bravo of the conditions of
his freedom.

The Penal Court chose to place the following conditions on Bravo in
lieu of preventive detention (jail) as long as he completes with the

following requirements:

1. He is not leave Costa Rica and must surrender his passport to judicial

officials.

2. He cannot be within 50 kilometers of a border crossing point

3. He must present himself to the Fiscalía de Delitos Económicos every 15

days to sign in.

4. He must deposit us$100.000 dollars bond within the next five days,
failing which, he will spend time in jail.



*Figueres Resigns as Head of World Economic Forum

José María Figueres Olsen, chief Executive Officer of the World Economic

Forum, has resigned with immediate effect. The World Economic Forum has

accepted his resignation.

The World Economic Forum said on that it "has been informed of allegations
in the press against José María Figueres Olsen that are related with his

years of public service in Costa Rica."

"In this press reporting, the Forum became aware that he had a
significant contractual agreement with another company whilst working in
a leading position at the Forum over two-and-a-half years," the WEF said
in a statement.

"José María Figueres Olsen has tendered his resignation on the basis that
he had clearly breached the rules of the World Economic Forum by not

declaring that he was being retained as a consultant when he took the
post and whilst he was working at the Forum. This issue has no bearing on
the allegations made against José María Figueres regarding those payments
in Costa Rica," the WEF said.

The five remaining members of the managing board of the WEF have fully

assumed Figueres' functions under the leadership of the Executive
Chairman, Klaus Schwab.

The World Economic Forum is the foremost global community of business,

political, intellectual and other leaders of society committed to
improving the state of the world.

Incorporated as a foundation, and based in Geneva, Switzerland, the
World Economic Forum is impartial and not-for-profit; it is tied to no

political, partisan or national interests.


*Arias Óscar Appeals to Television Viewers

Arias Sanchez, former president of Costa Rica and the 1987 Nobel Peace
Prize winner, went on national television last night to announce his plan
to restructure the PLN party following allegations of wrongdoing by
former president Figueres Olsen, who was thrown out of the party earlier
in the day.

Arias told viewers that is was up to him to "rescue" the party which has
been around began following the war of '48, to fight poverty and
corruption.

Arias assured his audience that he has never been offered nor has he
ever asked for any kickback or commission of any kind.

However, news came yesterday, before the television airing, that the

Fundación Arias para la Paz y el Desarrollo Humano received us$1.3
million dollars from the government of Taiwan, this according to the
director of the foundation, Luis Alberto Cordero.

According to Cordero, the Taiwanese contribution represents 7% of all
revenue for the foundation which began in 1987, founded by ex-president
and Nobel Prize winner and current presidential pre-candidate, Óscar
Arias.

The foundation says it has received about us$19 million dollars from

donations from different government and organization to finance it's

activities. Cordero explained that the first Taiwanese donation came
in 1988 and continued until April of this year.


*Rodríguez Decision Expected Today

Sometime after 9:00am this morning a decision by Superior Ccourt judge

Gabriela Jara will make her decision known on where former President
Miguel Angel Rodríguez will remain under house arrest or be sent to
the La Reforma prison.

Rodríguez has been under house arrest for the last 13 days, after a penal

court judge ordered him under house arrest for six months, rejecting the

request by the Fiscalía for nine months of preventive detention (jail).

The Fiscalía appealed the lower court's decision and thus a hearing was

convened for yesterday morning, where both sides appeared before Superior

Curt judge to make their arguments.

The Fiscalía argued that Rodríguez is a flight risk and that he will
impede their investigation if allowed to stay under house arrest,
where he has access to visits, a telephone and the internet.

Rodríguez's lawyer argued that the former president came back to Costa
Rica on his volition to face justice and cannot be deemed a flight risk.

Rodríguez is also appealing the lower court judge's order to post a

¢250.000.000 colones bond, which was to have been done with 10 days
of his arrest.

Rodríguez was escorted yesterday morning by a group of Judicial
officials and under heavy police security taken to the Goicochea court
house, where in handcuffs, waited in the OIJ jail cells for his
appearance before the court.

Several hours later he was, again under heavy police security, escorted
back to his apartment in Vargas Araya, Montes de Oca, in San Pedro to
await the judge's decision.

Neither side can further appeal the decision by judge Jara, save than
in three months time the Rodríguez detention must be reviewed by courts.


*Figueres Keeping Quiet

Party colours and sides don't seem to matter anymore, as both major
parties - the Partido Unidad Social Cristiana (PUSC) and the Partido

Liberacion Nacional (PLN) - have both been shaken up with accusations of

wrongdoing and corruption.

The latest case involving former president José María Figueres Olsen
(PLN)has stirred anger from all sectors of public and private life, from

President Abel Pacheco to all Costa Ricans from all walks of life.

The Figueres Olsen case is somewhat different than that of former
presidents Calderón and Rodríguez (both of the PUSC) in that Figueres
Olsen received payment for consulting services after leaving public
officer, while Calderón and Rodríguez got paid while in office or later
in relation to decisions and appointments related to their public charge.

According to Juan Diego Castro, lawyers for Figueres Olsen, his client
is not under any obligation to return to Costa Rica as there are no
charges of any wrongdoing. He told the press that "his client got paid
for services after he left office and not related to his presidency, and
that is the major difference to the others".

According to Castro, Figueres Olsen has committed no illegal act and at
best he would owe an explanation as to why he was paid such a high fee.
Casto said, "only the Ministerio Público can know if the payment is
outside the boundaries the Penal Code."

The Ministerio Público is the public body that has the authority to
carry out an investigation and present any charges. Thus, it is not
publicly known is the Ministerio Público is carrying out any
investigation of Figueres Olsen or what plans they have to get to the
bottom of the accusations against the former president.


*New Anticorruption Law Official

With the objective to detect and punish dishonesty in public
functionaries, the new anti corruption law "Ley contra la corrupción
y el enriquecimiento ilícito" comes into effect today.

The law was published in yesterday's edition of the official
newspaper "La Gaceta", at a time when Costa Rica has been shaken
with one sandal after another, which has left so far in it's wake two

ex-presidents implicated, a score of former public functionaries and

businessmen facing charges of corruption, influence peddling and
illegal enrichment.

Now, it will be a crime both for public functionaries to receive bribes
and for those willing to pay for special favours or influence a public

official.

With the new law, a public employee can be immediately dismissed
without severance, as well as a three to six years prison for any
person who benefits personally form any contract, agreement or
appointment against the common interest and use and destination of
public funds.

The law was approved by the Legislative Assembly five years ago, however,
it was approved in the first round of debate May 20 of this year. It
was in mid September when the law came up for second round of debate
and approved earlier this month.

The Imprenta Nacional has published a special edition that details the

specific points of the new law, that will be available for sale.


*Potholes in the streets? Get used to it.

Ministro de Hacienda (Revenue Minister), Federico Carrillo, says there
is no money to repair the potholes in the streets.

His ministry has an order to hand over some ¢9.000.000.000 colones to
the municipalities to repair the streets, that in some cases are
un-drivable.

The mayors are not happy with response, claiming they are the ones who
have to answer dozens of daily complaints over potholes. The Unión de

Municipalidades is preparing measures to force the payment.

The same problem is being lived on the national roads like the Inter
American highway that connects Costa Rica to it's neighbours, Nicaragua
to the North and Panama to the South.

Some stretches of the highway reduces traffic to a crawl as drivers
try to avoid the potholes. The Ministro de Transportes is claiming the
same thing, there is no money for the repairs.


*Ambassador quits to face political fundraising questions

The most powerful woman in the Abel Pacheco administration gave up her

ambassador’s post Thursday about the same time that a legislative
committee voted unanimously to ask the president to direct her to answer

questioning.

The committee is the special one set up to investigate how the political

parties raised money in the last presidential campaign. The work of this

committee and the scandals of the last presidential election have been

overshadowed by corruption allegations against three ex-presidents.

The woman is Rina Contreras, a former legislative president and former

minister to the Presidencia. She was named the country’s ambassador to
the Organization of American States and was to take over the job next
week. Ms. Contreras said she was stepping down for personal family
reasons. Her mother was widowed recently.

At the legislature, the seven-member panel accepted a measure presented
by Gloria Valerín of the rival Partido Liberación Nacional. The
committee members said there still were loose ends that Ms. Contreras
had to explain. The last time that Mrs. Contreras appeared before the

committee she declined to be sworn in, said Ms. Valerín.

Ms. Contreras served on the Pacheco election committee as well. Recent

disclosures show that the campaign received major donations from foreign

sources, something prohibited by law, and in amounts far beyond what the
law allows.


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