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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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NEWS DIGEST
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*Bi-Lateral Agreement with the U.S. Will Force Payment of Child Support
Costa Ricans who leave the country for "greener" pasture in the United States
forgetting loved ones at home and Americans who skip out on child support to
hide in Costa Rica can do so no more.
A bi-lateral agreement signed yesterday by representatives of the United
States and Roberto Tovar, Minister of Foreign Affairs in Costa Rica, will
ensure that minors will not be left out in the cold.
The agreement will now allow mothers on both sides of the border to apply the
law regarding child support.
The program has been two years in the making, which had to be approved by
various levels of government institutions before it could come into effect.
The Patronato Nacional de la Infancia (PANI), the Procuraduría General de la
República and the Corte Suprema de Justicia had to all agree to the agreement
before it could be signed.
Douglas Barnes, chief negotiator for the U.S. said that this is the first
agreement signed with a Latin American country. The U.S. has similar
agreements with Canada, Australia and eight European countries, but nothing
south of the border.
Rosalía Gil, Ministra de la Niñez y la Adolescencia said this is an important
move to help those families in need, for mothers who have to raise their
children alone and without financial support while the fathers leave Costa
Rican territory and the good life in the United States.
Roberto Tovar, for his part, said that is a signal to all the "dead beats"
who come to Costa Rica to avoid their responsibilities.
The agreement now has to be ratified by the Legislative Assembly and then for
the Foreign Ministry notify the U.S. government, before the agreement will
come into effect.
No date was specified for when this will be done, though it is expected to be
in no time.
*CCSS To Sue Spanish Consortium for Alajuela Hospital Deficienies
Following President Abel Pacheco's strong comments the earlier day, the Caja
Costarricense del Seguro Social (CCSS) had announced it will sue the Spanish
consortium that built the Alajuela Hospital, following complaints about the
construction and medical equipment that does not work.
As President Pacheco said in his comments the day earlier, it has taken some
25 years to plan, design and build the hospital and one would expect that
would be working properly.
The Spanish consortium OHL delivered the completed building last fall. "They
are saying that they have completed all, had the provisional receiving
ceremony and have been responding to the complaints", said Dr. Alberto Sáenz,
president of the CCSS.
The Spaniards had agreed to send a mission to Costa Rica to look into the
problem, but never stated when. Meanwhile, Costa Ricans who are paying the
price for the problems for the faulty construction and medical equipment that
doesn't work properly or at all.
The process of determining the total cost of the problems and initiating a
court action which will eventually make the final decision is underway. As
well, the CCSS has decided to investigate those public officials who were
supposed to have carried out the inspections and will follow up on several
key CCSS managers who, though are no longer working for the government, will
face legal action if found to have been negligent in their duties.
CCSS officials say that the building has no structural faults and there is no
danger there.
Dr. Sáenz also said that CCSS has learned it's lesson and will make sure the
same doesn't happen with the new Heredia hospital.
*National Debt Reaches $10 Billion Dollars
The Minister of Hacienda, Federico Carrillo, said yesterday that the national
debt grew by 13.82% in 2004, reaching us$10 billion - yes billion - dollars
or ¢4.921.897 million colones. The Revenue Minister stated that to wipe out
the debt, each Costa Rican must pay out ¢1.3 million colones or us$2.800
dollars at the current exchange rate.
Carrillo added that if the current Reforma Fiscal (Tax Reforms) is not
approved, the situation will not worsen.
The government has been spending more than it has taken in and part of the
increase in the national debt is increased payments to finance it. "If we
continue in this way the situation becomes cronic and unsustainable, no
matter now hard we have tried to cut spending", said the Minister.
The Minister says that the new tax reforms will help the government with
increase revenues to combat the growing national debt, which is now placing
tremendous pressure on the government and it's efforts to curb inflation.
The Minister said that currently 50.88% of government revenues are going to
pay debt obligations, while 36% is going to pension, leaving only 14% to pay
for all other expenses.
*BAC San José Bank Announces Payday Loans
Customers of BAC San José, a private bank, don't have to wait for their
paycheck anymore. The bank made the announcement yesterday, that it's
customers can now get an advance on their salaries.
Government institutions and many large and medium businesses use direct
deposit to pay their employees each 15th and 30th of the month. The employer
make the deposit to their bank account, eliminating checks and cash payments.
With this new plan, BAC San José customers who receive their salaries through
the bank can now get their money before payday, even though the employer has
not yet made the deposit to their account.
The bank will treat the early withdrawl as a cash advance and can only be
made at an ATM machine. The cost for this service is ¢50 colones for each
¢1000 colones withdraw with a minimum ¢200 colones for each transaction.
BAC San José officials say that some 10.000 customers can take advantage of
this plan, expecting only 20% to actually use it.
*Nicaragua Ready for One Border Control Post at Peñas Blancas
The President of Nicaragua, Enrique Bolaños, announced yesterday that
Nicaragua now has the money to move the Costa Rican Peñas Blancas border
control point into Nicaragua, creating one united border point than the
current separate posts.
"We hope that in no time the Costa Rican immigration authorities will move to
our installations to be able to provide better migratory services", said the
Nicaraguan president.
Bolaños made the announcement while at the border point with Honduras to
announce a free movement of goods and people between the two countries that
will also affect Guatemala and El Salvador.
Costa Rican authorities were not available for comment and Costa Rican
President, Abel Pacheco, though invited to the ceremony, did not attend.
*Owners Have 60 Days to Claim Impounded Vehicles
Are you one of the 500 owners of vehicles impounded for not having the gas
emissions certificate? And you haven't picked it up since the certificate law
was shelved last December?
Well then, get a move on. Yesterday, Luis Gómez, director general de Aduanas
- Customs - announced yesterday that owners will have 60 days to get their
cars out of will start the process of selling auctioning them off.
*Newspaper faces probe of printing press sale
The Spanish-language daily La Nación is in trouble with the tax man, and its
competitors are taking advantage of the situation.
The tax woes came to light in a news story Tuesday. But the news story was
not in La Nación. The sensational daily El Diario Extra played the news as
its top Page One headline and gloatingly published a full-page article on
Page 2.
Finally, La Nación published its own story, a bit more sedately, on Page 18
Wednesday.
A judge has ordered banks to provide tax authorities with information from
the La Nación accounts. A number of banking establishments were named in the
Extra story.
Tributación Directa, the tax-collecting agency, wants to know why a pair of
rotary printing presses were sold in 2001 by the newspaper to a leasing
company for $2 million and then resold two months later to a third party for
$5 million. The implication is that La Nación understated the value of the
presses for tax purposes.
Television news shows picked up the story Wednesday.
The La Nación story described the transactions as part of a leasing
operation. The newspaper sold the presses and then agreed to lease them from
the new owner. However, the newspaper did not describe the transaction in
detail and give a reason for the differences in sale prices.
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Thursday, February 17, 2005
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