Former President Linked
To Social-Security Scandal

Former Costa Rican President Rafael Ángel Calderón (1990-1994), one of the founders of the ruling Social Christian Unity Party, yesterday announced he would temporarily separate himself from the party during an investigation into allegations that a Panamanian-based corporation owned by his family, which he operated, received $440,500 from the medical supplies firm Corporación Fischel.

The funds in question have been linked to the controversial $39.5 million Finland Project, which officials have been investigating since May, reported Channel 7's Telenoticias news program Saturday evening.

The so-called Finland Project is a $39.5 million loan from the Finnish government to update equipment at public hospitals run by Costa Rica's Social Security System (Caja) – the country's state-run national public health-care system. As part of the requirements for the loan, the Caja was required to hire a company that would provide at least 50% of equipment made in Finland.

The loan's objectives were to help Costa Rica while promoting the sale of Finnish medical equipment. The requirement of using Finnish equipment excluded most companies from being able to participate in the bid for the contract. Only the consortium Instrumentarium Medko Medical Corporation, represented in Costa Rica by Corporación Fischel, was able to participate – and eventually won the bid.

When the questionable transactions were made, María del Rosario Calderón – the former President's sister – was the president of Sultana, the company that received the money. Alfonso Guardia, a first cousin of the Calderón siblings, was its vice-president, and Carlos Zamora – María del Rosario Calderón's husband and a partner at Rafael Angel Calderón's law firm – served as company treasurer, according to the daily La Nación.

However, María del Rosario Calderón told La Nación her brother has been in charge of the company “for several years.” She also said the company manages her family's interests.

The former President's announcement that he'll distance himself from the political party is the latest in a series of developments surrounding the Caja scandal, which has led to the resignation of former Caja executive director Eliseo Vargas, as well as the suspension of and criminal charges against the system's board of directors.

Vargas stepped down after La Nación revealed an apparently questionable deal between the director and former Fischel executive Olman Valverde, who allegedly rented a luxury home in San José to Vargas at less than half its value. Valverde also resigned after the story was published.

The day after Vargas stepped down, the Caja board of directors voted to run advertisements in four major newspapers, at a total cost of almost ¢2 million ($4,600), in support of Vargas' character. The directors – who were later suspended for the decision to purchase the ads – have been formally charged with misusing public funds, the Judicial Branch announced last week (TT, Sept. 3).