Finance and Presidency Ministers Resign
Two of President Abel Pacheco's closest advisors, Finance Minister Jorge Walter Bolaños and Presidency Minister Rina Contreras, resigned yesterday. Since the Pacheco administration took office on May 1, 2002, five of his original 20 ministers have resigned or been fired.
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EXPOTUR XIX Kicks Off
Last night marked the start of the Costa Rica´s 19th annual EXPOTUR.
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Two of President Abel Pacheco's closest advisors, Finance Minister Jorge Walter Bolaños and Presidency Minister Rina Contreras, resigned yesterday. Since the Pacheco administration took office on May 1, 2002, five of his original 20 ministers have resigned or been fired.

"Governing this country is very hard," a visibly upset Pacheco told reporters during his weekly Cabinet meeting. "Serving this country requires a lot of patience, strength and persistence. It is no longer clear who is supposed to govern."

Bolaños, one of Pacheco's closet advisors and a leading business administrator before taking the post, was responsible for a series of government measures aimed at curbing the spiraling fiscal deficit, including strict austerity measures at all public institutions and the permanent fiscal reform package currently being studied by the Congress.

Bolaños' resignation comes after two weeks of unsuccessful attempts to negotiate an end to a strike at the Costa Rican Electricity and Telecom Institute (ICE).

ICE workers have been on strike since May 16 as a result of a decision by the Central Bank to veto the institution's plans to sell $100 million in bonds to finance various investment projects over the next three years (TT, May 16, 25, TT Daily May 13, 21, 26).

Earlier in the week, it was revealed that the figures ICE had reported in its 2004 budget were faulty. The report revealed that rather than being ¢900 million ($23 million), ICE's budget deficit in 2004 could be as high as ¢40.9 billion ($105 million).

In his resignation letter, Bolaños mentioned ICE's lack of transparency and the confusion over the size of its deficit as the last straw that forced him to quit.

Recent problems with ICE have undermined the government's efforts to reduce the fiscal deficit, pass a permanent tax plan and improve the state of the country's economy, he said.

"[Bolaños] feels he has failed, he is ashamed and has announced his resignation," Pacheco said. "His presence will be greatly missed."

"Don Jorge Walter is a good man with an incredible sense of duty who on repeated occasions has attempted to solve this country's economic problems," Pacheco explained. "He's helped the country take many steps in the right direction. Our economic situation has begun to improve, thanks to his efforts."

Bolaños will stay on as Finance Minister until an adequate replacement is found.

Contreras' resignation comes after a group of 28 congressional deputies on May 5 announced they would no longer recognize her as a representative of the Executive Branch. The Presidency Minister is traditionally the Executive Branch's liaison with Congress. The lawmakers are questioning her alleged role in a social welfare housing project scandal in the western suburb of Santa Ana.

"I've known doña Rina since she was a little girl," Pacheco explained. "When I asked her to join my government, I knew she would serve as a source of support, wisdom and absolute loyalty. However, she must step down. I respect and value her expertise greatly and will keep her on as my personal advisor."

"The deputies said they would not vote on a series of important bills including the new tax plan and the free-trade agreement with the U.S. (CAFTA) as long as I remain Presidency Minister," a teary-eyed Contreras explained. "I told the President that no government position was worth paralyzing the entire government.

"I will not be an obstacle in this country's development," she said. "Now that I've resigned, it's time for the Congress to get to work and vote on these much-needed reforms."

No official word was given on who will replace Contreras. Congressman Ricardo Toledo, whom Pacheco has described as a "strong communicator" who gets along well with the rest of Congress and Pacheco's Ministers, has a strong chance of getting the job, analysts predict.

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Last night marked the start of the Costa Rica´s 19th annual EXPOTUR.

EXPOTUR, created to help jump-start Costa Rica's tourism industry in the mid-80s, has grown over the years into a huge event, this year drawing 240 delegates from travel companies worldwide, and 400 companies total.

Last night's inaguration, held at the Meliá Cariari Hotel, featured an address by President Abel Pacheco and a welcome party that lasted until midnight. The event will continue through the weekend, offering delegates an opportunity to meet with various companies and network.

EXPOTUR is run by the Costa Rican Association of Tourism Professional (ACOPROT). Founded in Feburary 1982, the association also publishes TECNITUR, a magazine about Costa Rican tourism interests.

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