HomeArchiveHousing Minister Takes Breather During Probe

Housing Minister Takes Breather During Probe

Fernando Zumbado, Housing Minister and rector of the government’s social programs, announced he is “temporarily” stepping down from his position while he is investigated for hiring allegedly questionable consulting services for a program aimed at improving living conditions in shantytowns.

“If the report shows he committed very serious mistakes … he will step down,” said Fernando Fernandez, a Housing Ministry spokesman.

Zumbado denies any wrongdoing.

The consultancies in question were paid for from a $1.5 million donation to Costa Rica by Taiwan to improve living conditions in Rincón Grande de Pavas, a shantytown west of San José. The Central American Bank for Economic Integration (BCIE) was responsible for administrating the donation through a trust fund.

The funds were donated in October 2006, months before Costa Rica’s June 2007 decision to break diplomatic ties with Taiwan and establish relations with the China.

Zumbado admitted that, given the nature of the project, the majority of the funds were spent on consulting projects for the Housing Ministry, but denied any misallocation of funds.

Casa Presidencial accepted the temporary resignation stating that Zumbado’s decision would give the Comptroller General’s Office and the Government Ethics Committee “space to objectively and independently study how the funds donated by Taiwan were executed.”

The daily La Nación reported Wednesday that in April 2007, Zumbado had recommended that that BCIE award a $315,000  consulting contract to the International Center for Sustainable Development (CIDH), a non-profit he founded and directed until April 2006, a month before assuming office. A total of 38 firms and organizations received consulting contracts.

According to its Web site, CIDH is a non-profit research institution created to promote sustainable development.

“Faced with this situation my conscience is absolutely clean because I consider we have acted in a correct manner and that the funds have been used for the purpose for which they were offered,” Zumbado stated in a press release issued by the Housing Ministry.

The Comptroller General’s Office is now investigating the Arias administration’s use of a secret $2 million donation by BCIE in 2006. The government has so far spent about half the money on 84 consultants without notifying the Comptroller General or the Legislative Assembly, which normally oversee the use of public funds.

 

Trending Now

El Niño Leaves Gulf of Nicoya Fishermen With Catches Too Small to Pay for Fuel

Fishermen in the Gulf of Nicoya say the unusually warm water El Niño has pushed against Costa Rica’s Pacific coast has left their nets...

Missing Caribbean Fishermen Found Alive in Colombia, Family Says

Three Costa Rican fishermen missing since Oct. 19 were found alive in Colombia, a relative says.

Heading Out for Halloween in Costa Rica? Expect More Police on Patrol

Costa Rica police will patrol cemeteries, churches, bars and costume parties this Halloween weekend. Here's what to expect if you're heading out Oct. 31.

Suspect in Playas del Coco Killing of American Will Be Held for One Year

A 22-year-old woman suspected of killing American businessman Marc Walter Fleming in Playas del Coco will remain behind bars for at least the next...

Corcovado’s Sirena Station Is Back to 366 Visitors a Day. Who Decided?

Corcovado National Park has spent the past five months caught in a tug of war that has left many in the Osa Peninsula's conservation...

Lufthansa to Drop Costa Rica Route in 2027 as Sister Airline Adds More Flights

German airline Lufthansa will stop operating its flights to Costa Rica in December 2027, but travelers will not lose the connection to Europe. Instead,...

Costa Rica’s Cambronero Bridge to Reopen

The Cambronero bridge on Route 1 is scheduled to reopen Tuesday, November 3, restoring traffic through a stretch of the Inter-American Highway closed since...

Costa Rica Pension Overhaul Could Require 30 Years of Work Instead of 25

Workers in Costa Rica's main public pension system could need five more years of contributions before they can retire, receive a smaller share of...

Scarlet Macaws Start Nesting in Costa Rica, and You Can Watch Live

Scarlet macaws are pairing off on Costa Rica's Pacific coast. Watch 11 live nest cams, with first chicks due by January.
Loading…

Latest News from Costa Rica

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