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TODAY'S CONTENTS
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*Feature Article: Pacheco Will Not Give Up His Immunity
*Feature Article 2: Bolanos Delcares State of Emergency in Nicaragua

*News Digest

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FEATURE ARTICLE
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*Pacheco Will Not Give Up His Immunity in the Face of Accusations Against Him

President Abel Pacheco, following accusations of irregularities for accepting

and not reporting gifts, including the use of free tickets provided by TACA

airlines, said yesterday he won't give up his immunity in the investigation,

but will answer a call by the Ministerio Público and/or the Asamblea

Legislative.

The President is involved in accusations of wrongdoing when it was discovered

that Spanish businessman Bernardo Martín was appointed Honourary Consul for

Costa Rica in Sevilla, Spain, is also a partner in a development project in

Papagayo (Guanacaste) that is being headed by former Tourism Minister, Rubén

Pacheco, that requires a government concession to develop the property.

Bernardo Martín is also responsible for the free publication of President

Pacheco's book which was unveiled in December 2004, in Sevilla, when he was

accompanied by his former minister and Chief Protocol officer, Jorge Arce,

who resigned on Monday after it was discovered that he also acted as legal

counsel for Bernardo Martín.

The storm that is surrounding the President is growing every day, slowing to

become a hurricane, as the Fiscalía decided to open an investigation into

accusations.

Pacheco said he won't give up his immunity "because it would be foolish of

him, but God will help. That is what my enemies want, because if for the sake

of transparency, I give it up, at the same moment, they will make 60 charges,

60 trials or maybe 200, and I will spend my life defending the accusations

and not governing."

Pacheco added that it has been difficult concentrating on governing this past

week amid all the accusations and mudslinging and that if he gave up his

immunity he would be spending most of his time from court to court, but it

doesn't mean he won't answer to calls made against him, he will not hide his

face and make himself available to the judicial system and Costaricans.

"I am not hiding from the Fiscalía (prosecutor's office) and the moment the

fiscal general, Francisco Dall’Anesse, calls me I will go to him and give him

a full accounting of my actions, with all my conscience and clarity. I may

have mistakes, but that I acted in bad faith, not in a moment" added Pacheco.

To clear matters up, Pacheco said that he paid out of his own pocket the trip

to Spain and 3 day vacation to the Cayman Islands on the return leg of the

trip last December. He also assured that he has returned the lifetime

membership he received in Capa Cana in the Dominican Republic and that he

will never be back there.

He said he paid for the costs incurred on that part of the trip and will also

pay for the free tickers given to the government by TACA airlines for the San

José - Miami - San José leg of the trip to Spain.

Pacheco said that the "tarjeta azul" is given to all the presidents of the

Central American nations by the airline which saves the government money for

presidential travel. "Here there is a persecution against the President of

the Repubic. It hasn't occurred to anyone to ask the other Central American

presidents to give back their blue cards, given as a courtesy by TACA. These

attacks against the presidents are not good for the country" said Pacheco.

Since Monday, Jorge Arce, Pacheco's chief protocol officer has resigned and

former minister Rubén Pacheco has been removed from the President's counsel

on economic matters and Bernardo Martin resigned his post as Honourary Consul

for Costa Rica in Sevilla.

COMMENT: Well well well! A few years ago, Pacheco said he would give up
his immunity when he was accused of illegal campaign contributions from
some of the same sources that landed two other ex presidents in jail. But
apparantly, now that things have heated up considerably, he has suddenly
changed his mind! Among his connections in Spain, might we discover that
the folks behind RETIVE, the illegal private monopoly to check cars, have
enjoyed the same benefits and privileges as the Spanish businessman involved
in this scheme? INQUIRING MINDS WANT TO KNOW!

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DISCUSSION
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FEATURE ARTICLE 2
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*Power shortage draws decree of emergency

MANAGUA, Nicaragua — The President of Nicaragua, Enrique Bolaños Geyer, has

suspended by presidential decree the constitutional rights to petition,

assembly and protest as well as access to the court system. Also suspended

are the rights to immediate injunctive relief (recurso de amparo and recurso

de exhibición personal) as complementary measures. All the suspensions are

part of a decree of an economic state of emergency.

The decree includes an immediate emergency energy rate increase in an effort

to solve the continuing crisis of power generation in Nicaragua. The

constitutional rights that are specifically suspended are contained in

articles, 32, 45 and 52 of the Nicaraguan Constitution. These rights, by

presidential decree, are suspended for a term of six months unless the decree

is rejected by the National Assembly.

The president also decreed an 11.83 percent rate increase in favor of Unión

Fenosa, the Spanish multinational energy provider, increasing the cost of

electrical energy for all Nicaraguan consumers of more than 150 kilowatt

hours in one month. Energy suppliers to Unión Fenosa had turned off a portion

of the generating system last week forcing the Nicaraguan government to

purchase electrical energy from the Instituto Costarricense de Electricidad

in Costa Rica at higher marginal prices to cover the energy shortfall and

avoid blackouts.

The suspension of constitutional rights is unprecedented in modern Nicaraguan

history. All of the members of the cabinet, with the notable exception of

Vice President Jose Rizo, signed the decree in public support of Bolaños.

Rizo refused to sign the document stating that it was an "additional attempt

to cause friction between the legislative and executive branches of

government." Bolaños retorted by stating that Rizo was a "solitary voice and

playing games."

Bolaños also announced that he was informing the United Nations of his

actions as well as the Organization of American States, which already is

scheduled to discuss the Nicaraguan political situation in a meeting next

week.

The National Assembly has only 72 hours to accept, reject or modify the

declared state of emergency from the date of publication in La Gazeta, the

national journal of Nicaraguan governmental affairs.

Both major political parties have sworn to reject the decree which may be

acted upon as early as today. Wilfredo Navarro, vice president of the

National Assembly, declared that the entire state of emergency was a "smoke

screen" for the benefit of Unión Fenosa and an effort to gather power in a

continuing battle by Bolaños against the National Assembly.

Sandinista Deputy José Figueroa stated that his party categorically rejects

the suspension of Nicaraguan constitutional rights without giving details

regarding further legislative actions. The veto, if in fact voted upon by the

deputies, will be easily rejected as 82 of the 92 votes of the Assembly are

controlled by the Partido Liberal Constitutionalista and Sandinista.

Political commentators also noted that the Dirección General de Impuestos,

the Nicaraguan tax agency, was commencing an audit process for all of the

individual returns of the members of the Assembly. This announcement is the

latest salvo in the war between governmental powers.

Deputies had cut $1.8 million dollars from the DGI budget last week

purportedly in retaliation for the enforcement of a tax lien imposed by DGI

against the bank accounts of the assembly. The DGI said the lien was due to

the alleged failure of the assembly to collect taxes from its members and

staff.


*Nicaraguan vice president urges rejection of state of economic

Nicaraguan Vice President Jose Rizo Castellon called on the National Assembly

on Tuesday to reject the "state of economic emergency" proposed in a decree

by President Enrique Bolanos and seek stability of the country.

Rizo said in a television program that he would ask his party, the Liberal

Constitutionalist, to reject the decree at the National Assembly as soon as

possible and seek dialogue with the executive power to search for solutions

based on consensus.

The economic emergency decree would only worsen the crisis instead of

overcoming it, he added.

Nicaraguan President Enrique Bolanos decreed on Monday a state of economic

emergency for 180 days in an attempt to tide over an energy crisis that has

forced a three-hours-a day rationing of electricity supply in the country.

Rizo said the emergency decree "does not produce initiatives to seek strong

alternatives to end the national energy crisis, and does not contain any

single idea on how to cope with the economic crisis."

"The solution will not be found by Bolanos alone," said the vice president,

who also suggested a national consensus on making a series of laws to cope

with the economic and energy crisis.

Bolanos said earlier that the current energy crisis was due to high fuel

prices. He announced on Monday an increase in the electricity rate by 11.83

percent for users who consume more than 150 kwh a month, but the date for the

decree to come into effect has not been decided yet. Only one-fourth of

electricity users will be affected by the surcharge.

Bolanos should send the decree to the country's National Assembly for

discussion and approval within 72 hours from its publication in the Official

Gazette.

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NEWS DIGEST
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*Fiscalía Asks TACA For Information on Free Tickets Used by President Pacheco

The accusations against President Abel Pacheco receiving unreported gifts and

the resignation of the President's Chief Protocol officer on Monday prompted

the Fiscalía de Delitos Económicos to open an investigation (Prosecutor's

office for ecomonic crimes) into the matter.

One of the first stops for the Fiscales (prosecutors) was at the airline

TACA, which last week made public that it donated, in the normal course of

business, the airline tickets used by the president Pacheco to Miami and back

for his personal trip to Spain in December of 2004.

The airline made it clear that it is a normal practice to give free tickets

to the government - the Ministerio de la Presidencia and Aviacion Civil - and

that the tickets used by the President were not given to him directly, but to

the government.

On Tuesday, the Fiscalía General de la República began collecting information

after having made a direct request, in writing, to the airline about

furnishing specific information referring to the free tickets used by

president Pacheco.

However, reports from the prosecutor's office say that Mario Zamora, general

manager for the airline, made a personal visit to the Fiscalía, to explain to

how exactly the "tarjeta azul" works, which provides free flights to

presidents of the Central American nations it flies to and from.

TACA airlines is based in El Salvador. Developing a strategic alliance with

the flag airlines of Guatemala (AVIATECA), Costa Rica (LACSA), and Nicaragua

(NICA), in the early 90's TACA consolidated operations under the name of

GRUPO TACA, thereby transforming the company into one of the most efficient

transportation systems in Latin America.

Currently, with a record of 92% on-time arrivals, TACA serves 34 cities in 19

countries on board the newest fleet across the three Americas, including 10

major cities in the United States, Toronto in Canada, Mexico City, all of the

countries of Central America, and the most important business and tourist

destinations in South America and the Caribbean.


*Ruben Pacheco Donates to Arias Presidential Campaign

Hedging his bets, former Tourism Minister and businessman, Rubén Pacheco

Lutz, who is involved in the controversy surrounding the granting of

concessions for his Papagayo project, is also a contributor to presidential

candidate Óscar Arias.

Last year, Pacheco Lutz donated ¢2.250.000 colones (us$4.750) to Arias' bid

for the presidential chair in 2006.

The news of the contribution was released yesterday by Martha Zamora, of the

Partido Accion Ciudana (PAC) party and backed by a publication in the Spanish

daily newspaper Al Día in November of 2004, naming Pacheco Lutz as one of the

165 contributors to Arias.

Arias' chief campaign manager confirmed the donation yesterday.

Pacheco Lutz is square in the middle of the storm surrounding his former

boss, President Abel Pacheco. Lutz accompanied the president on two trip to

Spain last year where he met Spanish businessman Bernando Martin, who later

became a partner in his Papagayo project to develop four lots, under a

government grant of concession, to build a residential community and hotel

that would include a 18 hole gold course.

Bernardo Martin was named Honourary Consul for Costa Rica for Sevilla, Spain

and published free of charge President Pacheco's book last of poems last

December.

Pacheco Lutz was also counsel to the government - the same government who

granted his project the concession - on economic matters. He was dismissed

from the counsel yesterday.

Arias is a front runner to win the presidential elections in 2006.


*Rising River Water Sweeps Away Vehicles

The alert went out that an automobile and it's occupants had been swept by

the rising waters of the La Gloria river in Jacó.

The call immediately sent into action local rescue workers and additional

help was requested from nearby Parrita, which since Monday night went looking

for the disappeared.

Following several hours of search, the vehicle was located but not it's

occupants, which led rescue workers to intensify their efforts.

Using kayaks, rescue workers navigated the river to the point it flowed into

the Pacific in the hopes of finding the occupants alive, but ready for the

gruesome task of recovering the bodies.

However, rescue workers got a surprise when they found Robert Sherman, the

American who had rented the vehicle, relaxing in a cabin. The car had gotten

stuck in the mud and decided to leave it - abandoning it completely - and

take a break.

Nearby, Austin Paine, also told authorities that his car had gotten stuck in

the mud and with the help of those nearby, they were able to pull it out,

though the water caused sufficient damage to the vehicle.


*Was it Wet Enough for You Yesterday?

Accodring to the weatherman - Instituto Meteorológico Nacional (IMN) - a low

pressure system coming from Panama is producing heavier than normal rains in

the Pacific coast and affecting the Central Valley (San José) as well.

The last couple of mornings San José has been waking up cloudy and wet from

rain during the night.

NOrmal for this time of year, is sunny and hot for the norming, clouding over

by mid-day and then mild to heavy rains for the afternoon. By the evening

hours the rain has stopped and repeats the following day.

However, for the next couple of days there will be more frequent and heavy

rain. The weatherman says it should all be back to normal by Friday.



*Costa Rica's National Team

Costa Rica has a long soccer history, one which dates back well before most

American fans came to know them through World Cup Qualifying. The Federación

Costarricense de Fútbol (FEDEFUTBOL) was founded in 1921, and gained FIFA

affiliation in 1927.

But although they won the championship of the old Confederation of Central

American and Caribbean Football seven times between 1941 and 1961, the

"Ticos" did not qualify for the World Cup until 1990, when Bora Milutinovic -

coaching the second of the five national teams he has led, after Mexico in

1986 - took another underdog to soccer's greatest stage.

Once in Italy, Milutinovic and Costa Rica pulled off one of the shocks of the

tournament. After stunning Scotland, 1-0, and losing to Brazil by the same

score, the Ticos came from behind to upset Sweden, 2-1, with a 75th minute

equalizer from Roger Flores and an 88th minute game-winner from Hernan

Medford, who has since become a familiar name to many North American soccer

fans. But the dream run ended with a 4-1 loss to Czechoslovakia in the Round

of 16.

In qualifying for the 1994 and 1998 World Cups, Costa Rica suffered

considerably from bad luck of the draw. The 1992 group stage put them with

Mexico and Honduras in Group A, and both of those teams tied for first with

13 points and advanced to the final round. The Ticos finished with nine

points.

In 1997, Costa Rica made it to CONCACAF's Hexagonal round, and it was here

that they first got into the consciences of many American fans. Battling

neck-and-neck with Jamaica for the third ticket to France, things were

looking up after a 3-1 win over the Reggae Boyz at the Estadio Saprissa in

San José. But then the wheels started to come off. Canada pulled an upset

with a 1-0 win in Edmonton, and El Salvador scrapped to a scoreless tie in

San José, while Jamaica defeated both teams 1-0 on home soil. So the Ticos

went to Portland, Ore., needing a result against the United States to get

back on track.

However, US midfielder Tab Ramos had other ideas. His stunning goal from long

range shook both the Civic Stadium roof and North American soccer to their

foundations, and left Costa Rica with a lot of work to do. Then came a trip

to Kingston, and with the National Stadium's nickname of "The Office" ringing

truer than ever, the Reggae Boys earned a 1-0 win of their own and all but

crushed Costa Rica's dreams of croissants and the Eiffel Tower.

But the Ticos kept fighting, and pulled off arguably one of the biggest

upsets in North American soccer history when they tied Mexico, 3-3, at the

Estadio Azteca. It was the first time Mexico had ever not won a World Cup

Qualifier in the legendary stadium. It wasn't enough though, as Jamaica

managed draws in every game the rest of the way, and took third place with 14

points to Costa Rica's 12.

Then came the road to South Korea and Japan, and this time Costa Rica had all

the weapons necessary to finally make it back to the World Cup. But once

again, the qualifying draw served up a hard path to success. Yet, what should

have been one of the easiest games turned out to be a disaster, as the

Barbados pulled off a 2-1 upset on home soil in Bridgetown.

A controversial 2-1 win over the United States in San José did nothing to

quiet alarm bells over coach Alexandre Guimaraes' future - and crowd trouble

forced the crucial game against Guatemala to be played in Alajuela instead of

the capital.

But a 3-0 revenge of the "Bajan Rockets" on the home side's return to San

José, and a 0-0 tie with the US in Columbus, Ohio let everyone breath a

little more easily. But then came a trip to Mazatenango, Guatemala, with

nerves up and down the continent frayed since Costa Rica, Guatemala, and the

US were all within a point of each other. The US took care of business with a

4-0 win at the Barbados, but Guatemala beat the Ticos, 2-1, and forced a

playoff for the last spot in the Hexagonal round.

So the two teams went to the Orange Bowl, and finally Costa Rica got all of

their cylinders firing when they needed them, cruising to a 5-2 win. And this

time, they kept it up all the way through the final round, including a 2-1

win in Mexico City - Mexico's first ever loss in World Cup Qualifying at the

Azteca - and the ultimate revenge for 1998, a 1-0 win in Kingston on the last

day of qualifying which sealed first place for the Ticos with 23 points.

Costa Rica's 2002 World Cup roster featured many players familiar to American

soccer fans. Among the famous names: Former New England Revolution

midfielders William Sunsing, Mauricio Solis and Mauricio Wright, forwards

Ronald Gomez and Hernan Medford, and, of course, Manchester City forward

Paulo Wanchope, arguably Costa Rica's greatest ever player.

All that attacking power helped the Ticos impress fans worldwide, especially

in the 5-2 loss to Brazil. Unfortunately, that game also sent Costa Rica

home, as a 3-0 win over China and a 1-1 tie against Turkey left them just

short of the second round on goal differential.

Suffice to say, though, that nobody will be overlooking Costa Rica on the

road to the 2006 World Cup in Germany, and that expectations for success will

be just as high at home as they have ever been.

As of May 31, Costa Rica sits tied for third in the final round of CONCACAF

World Cup qualifying.

The Ticos and Guatemala each have four points, two behind the U.S., which has

six points, and three behind Mexico with seven.

The top three teams will advance to the 2006 World Cup, while the fourth

place team will face an Asian team in a playoff for a spot


*Bolivian president warns of using force to end unrest

Bolivian President Carlos Mesa warned Tuesday of possible intervention of the

armed forces, should the political and social crisis in the country worsens.

Calling for peace and dialogue with opponents, Mesa said that in an extreme

case, the military will put down any attempt to destabilize the country. It

is the right of the Bolivian nation to defend itself, he said.

Unrest spilt over to La Paz, the seat of government, on Tuesday as protests

escalated in the neighboring city El Alto, according to reports from La Paz.

Thousands of demonstrators marched through downtown La Paz to rally at

Murillo Square, where the executive and legislative departments are located,

demanding the nationalization of the oil industry and the rejection of

autonomy demands by four regions.

The protesters cut off airport access and blocked main roads, isolating La

Paz from the rest of the country.

Trade unions, including the Regional Trade Union and the Bolivian Central

Trade Union, and farmer, indigenous and student organizations participated in

the demonstrations.

Demonstrators also demanded the resignation of President Mesa, the closing of

the congress and the trial of ex-president Gonzalo Sanchez de Lozada, who

resigned in October 2003.

Security was beefed up on Murillo Square as legislators convened on Tuesday

for their first session after a week-long recession.

The congress aims to address issues such as the modification of the recently

enacted Hydrocarbons Law, the call for a Constitutional Assembly and a bill

that would decide how greater autonomy would be granted to Bolivia's regions.




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