HomeArchiveCosta RIca to funnel $11 million settlement into public programs

Costa RIca to funnel $11 million settlement into public programs

Costa Rica´s attorney general said French telecom equipment maker Alcatel-Lucent has followed through with a payment of $11 million last week to settle a corruption case in Costa Rica.

Alcatel deposited the funds on March 9 in payment for “societal damages” – money the attorney general said should be funneled into public programs. This would help pay society back after the French company allegedly paid kickbacks to former President Miguel Angel Rodríguez and other government officials in return for a 2001 contract to provide cellular phone equipment here.

“We confirm the deposit of money and we´ve sent a note to the head of the Finance Ministry to inform them of the transaction,” Attorney General Ana Lorena Brenes said in a statement issued Friday. She added that her office is recommending that government officials spend this money with “the interest of the collective” in mind. “We would expect that it is invested in projects that have a direct impact on the population,” Brenes said.

Payment for societal damages is a recent concept in Costa Rica and is rare throughout Latin America, according to the attorney general. “(Societal damages) confirm recognition by a company or individual that they participated in acts of corruption that affect the collective,” said Brenes.

The settlement came as former President Rodríguez, who was in office from 1998 to 2002, prepares to go to trial for corruption after allegedly taking kickbacks from Alcatel to help secure a 2001 contract for the French company to supply cellular phone equipment here.

Rodríguez was expected to attend a preliminary hearing on Monday, but the court date was suspended after the judges received new evidence in the case, the newswire EFE reported.

The ICE-Alcatel trial, which is scheduled to begin on April 13, will be the second time a former Costa Rican president is placed on trial on criminal charges. Former President Rafael Angel Calderón was sentenced to five years in prison for embezzlement last October.

Trending Now

Costa Rica Prison Faces Court Challenge Before Inmate Transfers Begin

A prisoners’ rights group has asked Costa Rica’s Constitutional Court to stop inmate transfers to the newly inaugurated CACCO prison, saying concerns about heat,...

Costa Rica’s Brisa Hennessy Wins in Portugal and Jumps 20 Places Toward the 2027 World Tour

Costa Rican surfer Brisa Hennessy won the EDP Ericeira Pro with a late 7.50 wave, climbing from 24th to fourth in the Challenger Series standings with one event left.

Costa Rica Water Outage to Affect 13,000 in Heredia

More than 13,000 people in San Rafael de Heredia are expected to lose water service for six hours today, while crews clean two storage...

Costa Rica’s Lesser-Known Juan Castro Blanco Park Prepares for Tourists

Construction is underway on new visitor facilities at Juan Castro Blanco National Park, a lesser-known protected area in northern Costa Rica, as officials work...

National Team Defender Among Four Held in Costa Rica Loan-Shark Extortion Probe

Cartaginés right-back Carlos Barahona, 24, was detained in pre-dawn raids in Cartago as a suspect in extortion tied to gota a gota loans.

Costa Rican Scientists Revive Fish Larvae Research to Protect Fisheries

Costa Rican scientists and marine conservation specialists are working to revive an important field of research that could help protect fish populations and improve...

Costa Rica Ransomware Attacks Rise 39%, Microsoft Reports

Ransomware attacks targeting Costa Rica increased by 39% over the past year, placing us among the world's ten most affected nations, according to Microsoft's...

Your Android Phone May Soon Warn You Before a Costa Rica Earthquake Hits

Google is expanding its Android earthquake alerts to more than 200 countries, and Costa Rica has been reported among them. Here is what to check on your phone, and what to use until the alerts switch on.

El Niño Peak Expected in December With Record-Warm Pacific Waters, WMO Warns

El Niño has not peaked yet. The WMO expects it to keep strengthening until around December as Pacific waters head for record heat.
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel