Bank of America warned about the threats posed by the so-called “Jaguar Law” proposed by President Rodrigo Chaves. A report issued by BofA Securities in February 2024 first used the term “jaguar” to describe the growth of the Costa Rican economy based on Free Trade Zone activity and the export model.
Chaves presented a bill to the Legislative Assembly, calling for a referendum under the name “Jaguar Law to Promote the Development of Costa Rica.”
The consultation focuses on several key issues, including reforming the Comptroller’s Office Law, approving the construction of Government City, and expanding Japdeva’s powers.
In the report “LatAm at a Glance. Mid-year report,” the BofA Securities division noted that President Chaves presented a project that might weaken the Comptroller General of the Republic (CGR) and affect checks and balances in the political system.
Bank of America highlighted that one of the questions would be whether citizens agree or disagree with the removal of the Comptroller’s Office’s power to review the legality of public procurement contracts prior to their execution. This change means the Comptroller’s Office would only be empowered to inspect expenditures after they have been made.
Currently, the Comptroller’s Office can suspend contracts and actions when it detects suspicious activity, but if the referendum proceeds, it will need a court order to do so, the entity explained.
“We believe that the Costa Rican economy benefits from strong checks and balances. This is also one of the attributes that makes Costa Rica clearly different from its Latin American peers,” the bank added.
President Rodrigo Chaves denied that the “Jaguar Law” would weaken the tools of the Comptroller’s Office to oversee public contracts or that it limits the prior controls given to said public institution. However, Comptroller Marta Acosta pointed out that the bill “evades control of public funds to the detriment of efficiency and legality in the use of resources that belong to all Costa Ricans.”
The report also concluded that Costa Rica has solid economic growth prospects and an impressive track record of fiscal consolidation that has earned the government multiple upgrades from rating agencies in recent years.
