by Rod Hughes

The Omsbudman’s Office (the name in Spanish translates literally as “Defender of the Inhabitants”) has ordered that banks show cause why they summarily refused to reimburse clients who lost their On Line deposits due to Internet hackers. The office claims that the state-run banks did not investigate claims properly in hundreds of claims filed from January, 2007, to June, 2008.

Since then, banks have beefed up their measures against on line thieves but before the measures were effective, hundreds lost most or all their deposits in on line accounts. The banks answered all claims by blithely assuming that the customer was at fault for not properly guarding their own computers against invasion and identity theft. But the Omsbudsmen counter that the banks did not give customers “the opportunity to present their arguments.”

The office warned that, should the effected clients go to court by the hundreds, it could cost the government dearly in legal fees for their defense alone. The banks considered the claims an administration decision but the Omsbudsmen counter that it was not and that the rights of their customers were not sufficiently protected.

The Omsbudsman’s report was issued a week after two separate civil court cases that went against the bank and Banco de Costa Rica was ordered to repay the lost deposits, interest and the legal costs incurred by both plaintiffs. (Punitive damages are seldom granted in Costa Rican courts.) The office itself carries great moral weight but no direct legal jurisdiction, although it may file suit in the name of offended citizens.

The cases were the first in the relatively uncharted waters of Internet liability and bode ill for the state-run banks. The Omsbudman’s attorneys recommended that the banks insure deposits with the National Insurance Institute (INS) instead of taking a caveat emptor (let the customer beware) view. Banking liability legislation is somewhat vague as in the case years ago when a banana company lost a hefty sum from a fraud artist who colluded with a crooked teller to cash a bogus check. The bank calmly refused to reimburse the company or take responsibility for its dishonest employee.

by Rod Hughes

The municipal development institute (IFAM in Spanish) is threatening to fire half its employees in order to have funds to pay a lawsuit it lost to 30 employees. (Since most residents have little idea what the institute does and what the letters IFAM stands for, this threat may be less effective than most, except to its employees.)

The institute advises municipalities about planning and execution of projects and has only 150 employees as it is. So when the courts granted 30 employees damages in the form of retroactive pay to the tune of 1.5 billion colones, it came as a severe blow. The mass firing would also recreate a drastic erosion of its budget for severance payments, another 600 million colones.

Whether the threat from Fabio Molina, CEO of IFAM, is merely to gain an extension on the court decree to pay the back salaries this year is unknown. The institution certainly had not budgeted for such an eventuality. A 1994 regulation had obligated IFAM to pay employees certain benefits but an executive decision revoked that, arguing that IFAM could not sustain the extra cost. Then, in 2002, 30 employees filed suit for lost pay, the court saw it their way.

by Rod Hughes

It is no secret that socialized medicine is not only slow but tends to treat patients as units (or ‘beds’) and not as human beings. But it was a surprise to read in today’s La Nacion that the head of the county’s Social Security Administration (Caja, in Spanish) is urging that staff on all levels treat patients with tender loving care.

Caja chief Eduardo Doryan has issued an open memo to the staffs of not only Caja hospitals and clinics but pension offices as well. “The people won’t any longer stand for a secretary who doesn’t smile or a doctor who won’t look at them…” he said, “We need to be lovingly gentle with them. Loving care is a part of curing people.”

He is the first Caja executive in recent memory to try to set a kinder, gentler tone in Caja care. “These people pay our salaries,” he continued, “That man who goes to a branch office to obtain his pension, who comes for medicine, he pays our salary. They are our employers.” This is an effective reminder. Caja clinics especially are notorious for staffers who are there not to serve but to do the minimum necessary to earn a paycheck and not one hair more.

Doryan made his comments yesterday during the Internation Conference on Technologies of Health and Public Policy in San Jose. The one-day conference was to bring staffers up to speed on modern methods and Doryan took the opportunity to remind his charges that technology is not necessarily treating people like numbers.

This reporter has had occasion to treat with the central pension office in San Jose and their treatment of clients is excellent. But, without supervision, often the rural areas cause client vexation and even suffering. Contrarily, a few years ago we had occasion to try to sign up our family at the Marcial Fallas public clinic in Desamparados and found obstacles thrown in their path and rules made for the sole convenience of the personnel.

For example, they would take only 15 registrations on three days per week, in the morning, first come, first served. It did not matter that this clinic serves a populous area, growing rapidly at the time so that demand was high from people moving to this suburb. They brusquely turned away the unfortunates who came in after 7:15 a.m. or so and refused to even talk to those with questions. The staff was cold and, as Doryan indicated, would sooner have suffered a broken leg than to have smiled. The fact that there may have been hundreds more than 45 per week who would like a Caja ID card apparently could not be allowed to interfere with their bureaucratic sloth.

by Rod Hughes

The quiet but relentless campaign of Vice President Laura Chinchilla to become the governing National Liberation Party’s standard bearer in the 2010 elections got a boost this week from an unexpected source. New Legislative Assembly deputy Edine von Herold volunteered in an interview with La Nacion that she prefers Chinchilla to declared aspirant Johnny Araya, San Jose’s mayor.

The endorsement came almost casually during an interview with von Herold. She is taking over the vacant seat of former deputy Silvia Charpentier who is departing to become Housing Minister. The new deputy, a pediatrician and surgeon, will assume her post Oct. 20. She said she considers herself a female politician and has been on the party’s scene since 1984.

The growing support for Chinchilla reminds one of the rise of Hillary Clinton for the Democratic party’s U.S. nomination two years ago, that included a majority of influential women along with a sprinkling of strong establishment men. Araya has expressed resentment about the tacit backing of President Oscar Arias for Chinchilla, tacit because he cannot meddle in his party’s politics without incurring the wrath of the Supreme Elections Tribunal.

by Rod Hughes

If the dikes of New Orleans had been as strong as the San Ramon defense Sunday, that city would never have flooded during Hurricane Katrina. But, according to La Nacion sportswriter Gustavo Jimenez, the side from the “city of the poets” as San Ramon is known simply built a “wall of iron” in front of the goal, hunkered down and waited for lightning to strike.

It did, in the form of a foul against San Ramon’s Bryan Solorzano that resulted in Rodrigo Cordero’s penalty kick at minute 47 for the only marker of the match. Even that early, Heredia was obviously frustrated by the tight defense, sending a barrage of shots on the goal without great marksmanship but brimming with eagerness. It was a rare case of the best offense being defense, and the penalty kick was one of San Ramon’s only two real opportunities.

Perez Zeledon 2, Cartago 1, in hotly contested match

One must feel sorry for the player who makes an error that loses an excitingly close match after his side has played with great heart and not a little success. But Perez Zeledon is always tough on its own turf in San Isidro de El General. But mistakes happen so when Cartago forward Roberto Mudarra fouled Tirso Guio in the box, the scene was set for Freddy Fernanez’s successful penalty kick and a sad loss for Cartago and Mudarra.

It had been Mudarra, after all, who had set up Martin Arriola with a pass at minute 64 when Arriola had tied the match with his goal. Earlier in the second half, PZ had taken the lead with Diego Monge’s goal on a pass from Luis Lara. What made the loss so hard for Cartago is that they had played magnificently after having had two men sent off for an accumulation of yellow cards, playing with 10 from minute 28 and nine from late in the second half. Ill starred indeed.

Brujas 1, University of Costa Rica 1

Like a tired old dragon, Brujas of Escazu hit the turf of their borrowed stadium in Desamparados, breathing fire during the first half only to fizzle like a wet match. Within 14 minutes of play, they had scored on Pablo Brenes’ goal, assisted by Josimar Arias and the scene set for the rout that never happened.

But UCR’s Jason Scott blasted in a header on Eduardo Valverde’s pass at minute 36 and Brujas seemed to wither. Brujas has been playing strongly and winning well this season, so it may be that they simply under-estimated their rival. UCR has tended to be the doormat of stronger clubs both this season and last but they were not about to sit down and whimper at their fate Sunday.

Saprissa 2, Alajuela 1 in “classic” Saturday

Saprissa, even while struggling in an international tournament, seems to always find time to beat its archrival Alajuela in recent years. It did not hurt morale any to be playing at home in Tibas, of course. But Alajuela is strong and had every hope of winning, taking into account Saprissa’s 4-0 loss to a Mexican club in Concacaf tourney play last Tuesday.

We would say that the big purple “S” didn’t let any grass grow under their feet except that their Ricardo Saprissa Stadium has artificial turf. Suffice it to say that they went ahead at minute 11 on Celso Borges’ goal on a pass from Alehandro Alpizar, then added to it at minute 30 on Alpizar’s goal, assisted by Andres Nunez. It was not until deep into the second half that Alajuela its showed stuff with a goal by Jean Carlos Gonzalez. After that, nothing.

Last weekend appeared to be one for defensive play. In the second half, Saprissa drew up the drawbridge while Alajuela attacked and the home side only counterattacked to surprise their rival. The only problem with that was that they wasted those counterattacks mostly and made tough going on what should have been an easy victory.

Liberia 3, Puntarenas 1 in play Saturday

Liberia Mia (to give them their full name) made victory look easy Saturday in the Guanacaste city’s home pitch. After a scoreless first half, Victor Nunez got the festivities going in the second on a pass from Allen Guevara, followed by Jose Carlos Cancela’s penalty kick, putting Liberia ahead 2-0. Again, Nunez fed the goal a pass from Guevara. With about eight minutes to go, the port city’s Roberto Wong blasted in a long kick to save face for Puntarenas.

Quintanilla: When All Else Fails, Blame the Press Dept.

Salvadoran Eliseo “Chayo” Quintanilla now blames the Costa Rican press for his abrupt departure from the Alajuela club that had imported him. He was fired for a lack of discipline off the pitch earlier this month. If you will excuse the observation, he sounded a little like Richard Nixon after Watergate.

The 26-year-old Salvadoran said his expulsion from a match with Puntarenas Aug. 30 was the straw that tipped the scales but that the press had been after him for some time. It did not help, said Quintanilla, that Alajuela’s Argentinian coach, Marcelo Hugo Herrera, was negative about Quintanilla’s frequent absences to practice with his national All Star team. Just when it appeared that Cheyo was running out of fingers to point to his tormenters, he also griped that the referee was unfair in throwing him out of the Puntarneas match. Boo hoo, etc.

by Rod Hughes

An undercover Judicial cop had a bad night yesterday. In the tough Leon XIII section of the largely industrial district of Uruca in San Jose, he held two men covered with his gun. According to Judicial police (OIJ) he was forced to shoot a 23-year-old suspect in the head–then things started to get complicated. Accomplices of the suspect menaced the cop and he was forced to flee into a vacant lot to hide, falling into a steep ravine and breaking his leg.

Leon XIII is notorious for its crime and police, who normally patrol in pairs, do not enter the area at night except in force. That was the case yesterday when police were conducting a sweep of a neighborhood. But when the undercover cop drew his gun and shot, confederates immediately came running. The cop tried to hide himself in an overgrown area but blundered into the ravine where he fell to the bottom.

His fellow OIJ agents rushed to rescue him as he lay disabled in the rain. But getting him out was far from easy; the hillside was steep, slippery and rocky and agents expected a mob of armed accomplices to appear at any moment with revenge in their hearts. Meanwhile, the suspect had been taken in private car to Hospital Mexico where he had even less luck than the agent—he was pronounced dead.

Leon XIII is a hotbed of drug use, narcotics trafficking and violent crime. The suspect, nicknamed Chaputin, is not the only member of his family to die violently. Peine de Mico was shot to death by an unknown assailant in 2005 and only last February Quique, only 19, was gunned down execution style. All carried the last name Guillen.

Versions of the incident by anyone other than police were unavailable.

by Rod Hughes

After being adjudged only the third most honest country in Latin America, (see previous blog) the nation received an encouraging compliment from Buenos Aires yesterday where a private study showed that Costa Rica tops the 18 Latin American countries in development of democracy.

This country was followed by Chile and Uruguay, which were judged in a previous study also the most honest ones in Central America. The study, performed by Polilar.com and the Konrad Adenaur Institution, analyzes behavior of society, leadership and institutions within a country. The countries with the least development were Venezuela, Bolivia and Ecuador, according to the study.

The analysts said that already high scorers on the survey scale “continue growing” while more countries are losing ground. Last year, eight countries lost points but this year that number has grown to 10. Of Costa Rica’s close neighbors, Nicaragua lost points while Panama gained some. Like Africa, Latin America has often been watched from Europe (the Adenaur Institute is based in Germany) with dismay due political instability and an inability to get a handle on democratic practices.

This reached a high during the 1970s when half of the hemisphere’s regions were under the heel of military-backed dictators or oligarchies and many were sliding to civil war. In that era, Costa Rica stood almost alone in preaching democratic principle in the region, often to the disdain of those such as Sourthern Cone neo-nazi military men who disdained democracy.

by Rod Hughes

A Social Security Administration (Caja) regulation barring widows and wives of the disabled workers from receiving pensions is universally hated but still on the books. Even the new head of the Caja’s pension section, Miguel Pacheco, is vowing to change it, the daily La Nacion reports.

But even Pacheco’s hands are tied until the Supreme Court’s Constitutional Chamber (Sala IV) acts on a pending appeal on the subject. While the U.S. Social Security Administration puts limits upon pensions based on a person’s being employed after age 65, this is not the custom here. The philosophy is that if a person has worked and contributed a portion of his earnings for the requisite time, he has earned the right to a disability or old age pension. In case of his death, his widow can receive benefits.

But article three of the Caja regulations bar this if insurance is being paid for a traffic accident or workplace accident. The newspaper cites the case of Ericka Picado whose husband, a garbage collector for the La Union municipality of Cartago, was killed by a car while on the job, a domestic disaster in which both stipulations apply. Sorry, no pension.

Pacheco calls the regulation “irrational.” “We don’t understand how (this article) was inserted,” he told La Nacion with obvious frustration, “As it is, we can’t pass over it.” He obviously hopes the claimant in the appeal will win out and the despised article will be declared unconstitutional.

by Rod Hughes

The failure of the final law to bring this country’s business statutes in line with the Central American Free Trade Agreement (CAFTA) with the United States is causing its first complications. Textile companies had invested millions of dollars in creating new plants here in the hope of exporting clothing tariff-free into the Unites States.

That was before the Supreme Court’s Constitutional Chamber (Sala IV) decided that the lawmakers had missed a step in procedure and sent back the environmental law that had been passed only weeks before. Twelve similar CAFTA-enablement laws had been passed and are on the books, not without bitter debate and some difficulty, including the strenuously contested one to open telecommunications and another striking down the government insurance monopoly.

Vice President Laura Chinchilla, while acting in the absence of President Oscar Arias who was on diplomatic tour, vowed to apply to the other member nations in the trade pact for an extension on the pact’s deadline of Sept. 30. The other nations, including the Dominican Republic, all passed ratified the pact quickly, even in the United States where the Democrats opposed it. Costa Rica is the only one that has had to ask an extension (that will run out in a few days) and it is unknown if another extension is possible.

Meanwhile, the daily paper La Nacion noted that the textile firm Casino group, had invested $4.5 million in creating three plants and importing machinery in the last three years. They had high hopes of export of undershorts and socks to the United States free of import duties. Now they, and other investors like them, have new investment on hold. This also means that hiring is also on hold. Currently under the so-called Caribbean Basin Initiative, they pay 17% and 25% import duties that would be eliminated by CAFTA.

Another textile firm cited by La Nacion, BorKar, had hopes of acquiring cloth from China and other Asian nations to export high quality suits and sport coats duty free to the United States. Currently, if they sell clothing made of cloth from any other source than the United States, they must add the 20% and 28% import duty to their product price. Anticipating passage of CAFTA’s enabling legislation, they have warehouses here stuffed with Asian material.

Another company that would be effected by this country being left out of CAFTA would be the local Rincon Grande S.A. Its president, Rodolfo Molina (who also heads up the Costa Rican Chamber of Textiles) says that his export of cloth to Honduran customers would be threatened because, like the U.S., Honduras has also already ratified the pact and can import that product from other CAFTA countries in this region duty-free.

The national textile industry has faced ups and downs before but they have been mostly down in the past few years. Earlier this year, several firms closed down plants here. In the decade of the 1980s, so called maquila industries, where foreign clothing companies sent in the raw materials that were turned into clothing here and returned, was growing. It employed thousands of Costa Rican women, sitting at sewing machines, many of whom were raising families on their own and would have difficulty obtaining other jobs.

Current regulations of the Caribbean Basin Trade Initiative law cover a multitude of materials, even down to thread. If some way around the blockage of the final CAFTA law is not found, these companies face serious, perhaps fatal, disadvantages in the CAFTA marketplace. This will also keep them from expanding with a serious impact on future local employment. It is the classic case of being between the rock and the hard place.

by Rod Hughes

Still, the Transparency International poll is far from being an exact measure, since it surveys only public perception of corruption. (The Costa Rican public holds public officials to a high standard, even if, individually, the critical commentators do not practice what they preach.) It does measure public opinion of various sectors of life including business, government and the courts. (In no fewer than 10 countries in this region, about 73% of persons surveyed felt their courts to be unreliable or dishonest.) In all sectors, New Zealand and Denmark come out on top in world ranking of honesty.