No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveAlcatel Millions Set For ‘Societal Damages’

Alcatel Millions Set For ‘Societal Damages’

Costa Rica‘s attorney general said last week that French telecom equipment maker Alcatel-Lucent has followed through with a payment of $10 million 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 in Costa Rica, according to Attorney General Ana Lorena Brenes.

“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,” Brenes said in a statement issued last 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,” she said.

Payment for societal damages is a recent concept in Costa Rica and is rare throughout Latin America, according to Brenes.

“(Societal damages) confirm recognition by a company or individual that they participated in acts of corruption that affect the collective,” said Brenes.

The settlement comes as Rodríguez, who served as president from 1998 to 2002, prepares to go to trial on corruption charges. Rodríguez was expected to attend a preliminary hearing on Monday, but the court date was suspended after judges received new evidence, the newswire EFE reported.

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

–Alex Leff

Trending Now

Costa Rica Joins El Salvador in New Security Pact Against Organized Crime

Presidents Nayib Bukele of El Salvador and Rodrigo Chaves of Costa Rica signed the Coatepeque Declaration security pact, forming the Escudo de las Américas...

World Tennis Rebrand Boosts Central American Hopes for 2026 Slams

Young players from across our region fill the courts at Panama's Circuito Conteca tournament. More than 120 competitors from six countries, including our own...

Bukele and Elon Musk Bring Grok AI to El Salvador Public Schools

El Salvador’s president Nayib Bukele and billionaire Elon Musk announced Thursday an “alliance” to use Grok, the artificial intelligence system of social network X,...

Lowest Dollar Rate Since 2005 Squeezes Costa Rica’s High Season Tourism

The dollar exchange rate in Costa Rica has sunk to its lowest point since 2005, raising concerns across the tourism industry as the high...

WSL Yellow Alert at Nazaré: What It Means for Latin American Big-Wave Surfers

The World Surf League has activated a yellow alert for the Tudor Nazaré Big Wave Challenge at Praia do Norte in Portugal. Incoming Atlantic...

Costa Rican Family Seeks Justice After U.S. Hearing in Vílchez Homicide

A judge in Sequatchie County, Tennessee, moved forward with charges against two men accused in the death of Silvia Gabriela Vílchez Mora, a 50-year-old...
Avatar
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica