Archive for January, 2010
Monday, January 25th, 2010
A recent analysis performed by AyA has led to the implementation of water rationing to some 140,000 people starting the second week of February.
Among the communities that will be affected include: Escazu, San Antonio de Escazú, Ciudad Colón, upper Alajuelita, San Juan de Dios de Desamparados, San Antonio de Coronado, Moravia and all of the province of San Joseph.
Rationing will also apply to parts of Perez Zeledon, Esparza and Athens.
This measure reflects the decrease in the flow of surface water (rivers, streams and springs) that serve those areas which stems from the lack of rain in recent months.
Ricardo Sancho, president of AyA, said that in some cases the reduction was as high as 40%.
“Everything will depend on the behavior of rainfall and the water saving ability of consumers,” he said. If the situation doesn’t improve therationing could remain in effect until May.
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Monday, January 25th, 2010
Stephen Schultz entered a guilty plea in federal district court in Miami to 12 counts of an indictment pending against him, the Justice Department and the U.S. Postal Inspection Service announced today. Schultz pleaded guilty Thursday to one count of conspiracy to commit mail and wire fraud, eight counts of mail fraud, and three counts of wire fraud. The actions against Schultz are part of the government’s continued nationwide crackdown on business opportunity fraud.
Schultz was arrested on Dec. 12, 2008, in Costa Rica following his indictment by a federal grand jury in Miami on Nov. 20, 2008. According to the charges against him, Schultz and a co-conspirator, Jeffrey Pearson, purported to sell beverage and greeting card business opportunities, including assistance in establishing, maintaining, and operating such businesses. Following his arrest in Costa Rica, Schultz was extradited to the United States.
Schultz worked for USA Beverages Inc., Twin Peaks Gourmet Coffee Inc. and Cards-R-Us Inc. Beginning in 2005, USA Beverages sold business opportunities to own and operate coffee beverage display racks. USA Beverages rented office space in Las Cruces, N.M., and otherwise made it appear to potential purchasers that USA Beverages’ operations were fully within the United States. However, USA Beverages actually operated from Costa Rica.
After USA Beverages, Schultz worked for Twin Peaks, which was a Florida and Colorado corporation. Twin Peaks sold business opportunities to own and operate coffee beverage sale display racks. Twin Peaks rented office space in Fort Collins, Colo., to make it appear to potential purchasers that its operations were fully within the United States. In truth, Twin Peaks also operated from Costa Rica.
Schultz next worked for Cards-R-Us, which was a Nevada corporation that sold business opportunities to own and operate greeting card sale display racks. Cards-R-Us rented office space in Reno, Nev., to make it appear to potential purchasers that Cards-R-Us’ operations were fully within the United States. Like USA Beverages and Twin Peaks, Cards-R-Us actually operated out of Costa Rica.
Schultz and his co-conspirators made, and caused others to make, numerous false statements to fraudulently induce the purchase of business opportunities. Potential purchasers were falsely told that the companies were established years earlier, had a significant number of distributors across the country, and had a track record of success. Potential purchasers were referred to references who told false tales of their success as business opportunity owners. Through these and other misrepresentations, purchasers of the business opportunities were led to believe that they would likely earn substantial profits.
“Business opportunity fracud targets Americans who are working hard to start a business and earn an honest living. While these fraud schemes may sometimes operate beyond our borders, they aren’t beyond the reach of United States law,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. “The Justice Department is committed to prosecuting those who steal through false promises of financial success.”
In pleading guilty, Schultz admitted that his role in the conspiracy resulted in between $2.5 million and $7 million in losses to investors and harmed more than 250 victims. Schultz faces a maximum sentence of 10 years in prison on the conspiracy count, and 25 years on each of the mail and wire fraud counts. He also faces a possible fine and mandatory restitution.
Assistant Attorney General West commended the investigative efforts of the agencies involved in this matter, the Postal Inspection Service and the Federal Trade Commission, which previously brought a related civil suit and made a criminal referral. The Justice Department’s Civil Division is handling the criminal prosecution.
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Monday, January 25th, 2010
The newly elected Honduran President of the Congress Juan Orlando Hernandez has taken office at a preparatory meeting for the new National Congress over the weekend.
Hernandez was elected as the president of the Congress for the coming four years last Thursday.
Hernandez, a four-time congress deputy, was born in Lempira province of western Honduras.
During the preparatory meeting, six vice presidents and two secretaries of the new National Congress were also elected.
As scheduled, the new congress is to hold the first plenary session on Monday and will appoint Honduran President-elect Porfirio Lobo Sosa as president of the country.
On June 28, 2009, former Honduran President Manuel Zelaya was ousted in a military coup and the then legislature leader, Roberto Micheletti, became interim president.
The Honduran Congress voted against the reinstatement of Zelaya after Porfirio Lobo won the presidential vote on Nov. 29, which was boycotted by Zelaya and slammed as illegitimate by Brazil and Venezuela.
But the United States and Mexico viewed the election as a way to move forward.
Zelaya, who was forced to exile in Costa Rica, sneaked back into Honduras in late September and has been taking refuge in the Brazilian embassy.
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Monday, January 25th, 2010
Costa Rican families who want to adopt Haitain children orphaned following last week’s devastating earthquake cannot do so, says Mario Víquez, president of thePatronato Nacional de la Infancia, Costa Rica’s child welfare agency.
Víquez explained that adoptions can only take place with countries that have ratified the Hague Convention or with home there is a bilateral agreement, and Haiti does not meet either of the two conditions.
The requirements is included in the “Procesos de Adopción del PANI” (PANI adoption process).
The PANI director said he does not consider it advisable, since the disaster represents a big impact for children and adding to this the uprooting could affect them even more.
Víquez said that his office has received dozens of requests by Costa Ricans anxious to adopt children from Haiti.
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Monday, January 25th, 2010
A 5.1-magnitude earthquake, the third one above 5.0-magnitude in the past two days, hit Costa Rica on Saturday morning without immediate reports of casualties or damage, the country’s quake and volcano observation center reported.
The moderate quake occurred at about 8:43 a.m. local time (1443 GMT) on Saturday on the Pacific coast in southern Costa Rica. The quake was felt in the capital city San Jose.
Five hours before the quake, another 5.1-magnitude tremor struck 20 km northwest of Punta Burica at a depth of 20 km below the sea level, said the observation center.
On Friday morning, a 5.0-magnitude quake hit the Pacific area near Jaco in southwest Costa Rica, which was felt in most areas of the country.
Although there are no immediate reports of casualties or damage, the authorities have asked the public to be alert against new quakes.
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Friday, January 22nd, 2010
While communication to those in Haiti is still difficult, people should contact the US Department of State at 1-888-407-4747. If you are trying to reach a Haitian citizen, you should continue to call or contact other family members living nearby.
You can help the earthquake victims in Haiti by making a financial gift to the American Red Cross International Response Fund, which will provide immediate relief and long-term support through supplies, technical assistance and other support to help those in need. The American Red Cross honors donor intent. If you wish to donate please do so at the American Red Cross, P.O. Box 37243, Washington, D.C. 20013 or to your local American Red Cross chapter. Donations to the International Response Fund can be made by phone at 1-800-REDCROSS or 1-800-257-7575 (Spanish) or online at www.redcross.org. Click here to donate now.
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Friday, January 22nd, 2010
The long-awaited H1N1 flu vaccines arrived in Costa Rica on Thursday, two months behind schedule.
According to the Health Ministry, the shipment of 200,000 vaccines was delayed by a strike that began on Dec. 15 at the production factory in France.
Health officials say they hope to begin distributing the vaccines as of Monday to patients that have been identified by the Social Security System (the Caja) as “at-risk.”
Those people include pregnant women in the third trimester and persons with hypertension, congenital heart disease, diabetes, serious and chronic asthma, weakened immune systems, persons dependent on oxygen for breathing and persons who are morbidly obese.
Foreigners who do not subscribe to the public health system but who exhibit signs of risk can present a doctor’s note to a local EBAIS center to request a vaccine. Health Minister María Luisa Avila warned that any so-called vaccine that has been sold in Costa Rica to date does not specifically target the H1N1 flu virus, as does the medicine that entered Costa Rica on Thursday.
The Health Ministry has requested an additional 1.6 million doses from the Pan American Health Organization (PAHO), but it’s unclear whether their request will be fulfilled in time for the anticipated second wave of the flu pandemic. Originally, medical experts predicted the H1N1 flu virus to resurface in January or February and warned it could be worse than the one experienced in July-August, in which 21 died.
In total, Costa Rica has confirmed 1,847 cases of flu and 50 deaths since the first case surfaced in May of last year.
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Friday, January 22nd, 2010
The Chinese government said Thursday that a Costa Rican presidential candidate’s pledge to name a Chinese-financed stadium in San Jose for the Dalai Lama “is not in line with the common desires of the two countries.”
In a statement sent to Efe, the Foreign Ministry said the stadium, built with $83 million in Chinese investment, “represents the Chinese people’s friendship with Costa Ricans” and is a project that has been “well received by the people of Costa Rica.”
The ministry was responding to statements by Otton Solis, leader of the center-left Citizen Action Party, to the effect that he would name the stadium after the exiled Tibetan spiritual leader to show Costa Rica’s lack of dependence on “economic aid.”
Solis is trailing in the polls.
The Dalai Lama has lived in exile in Dharamsala, India, since a failed Tibetan uprising against the Chinese government in 1959. He acknowledges that Tibet is part of China, but Beijing still considers him a revolutionary who works to spread notions about Tibetan independence.
The 35,000-capacity stadium – the most modern in Central America, officials say – will have offices for 32 sports federations, giant video screens, a sports museum, a track-and-field course and rooms for table tennis, fencing and chess.
Costa Rican authorities are planning to inaugurate the stadium in February or March of 2011 with sporting activities, a concert by a world-renowned artist and a soccer game featuring the Costa Rican national team, possibly against its Chinese counterpart.
The stadium is one of the flagship projects stemming from the resumption of diplomatic relations between Costa Rica and China on June 1, 2007, which required the severing of ties between the Central American country and Taiwan, regarded by Beijing as a renegade province.
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Friday, January 22nd, 2010
Telecom equipment maker Alcatel-Lucent (ALUA.PA) said on Thursday it would pay $10 million to settle a corruption case in Costa Rica.
Alcatel-Lucent was accused of paying kickbacks to former Costa Rican President Miguel Angel Rodriguez and other government officials in return for a 2001 contract worth $149 million to supply cellular telephone equipment.
Rodriguez, who was in office from 1998 to 2002, is set to go on trial this year for corruption. He denies any wrongdoing.
The case marks the first time in Costa Rica’s history that a foreign corporation has agreed to pay the government damages for corruption, Solicitor General Ana Lorena Brenes said.
“Alcatel recognizes that it did not have sufficient control of its officials and (it will) pay the state,” said Brenes, who led the case against the company, in an interview with Reuters.
Alcatel-Lucent spokesman Marco Malfavon confirmed the agreement.
Brenes said Alcatel admitted its executives paid bribes to officials of the Central American nation’s state-run telecommunications company in exchange for a contract to install 400,000 cell phone lines.
Some $7 million was paid out in the scheme, including $800,000 that went directly to President Rodriguez, the government says.
A former Alcatel employee pleaded guilty in U.S. court in October 2008 to making more than $2.5 million in corrupt payments to various Costa Rican officials.
The Franco-American company has been struggling to turn around its business during the global economic downturn that has hit the telecom equipment sector hard. Alcatel has yet to generate regular free cash flow since it was formed in a merger in 2006.
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Friday, January 22nd, 2010
Since Manuel Zelaya was ousted last June as the president of Honduras in a military coup backed by the courts and Congress, the putsch’s leaders have been playing for time. The de facto government’s sole policy has been to survive the seven months left of Mr Zelaya’s term and let an elected successor pick up the pieces. On January 27th that successor, Porfirio “Pepe” Lobo, will be sworn in. He takes over a country that is diplomatically isolated, economically battered and socially and politically polarised.
As a candidate Mr Lobo was evasive, speaking little about the coup and its aftermath. As president his first task will be to gain recognition of his legitimacy, both abroad and at home. His election in November was widely seen as free and fair. But the coup’s leaders have done nothing to ease reconciliation. They have spent their final days in office congratulating themselves: the legislature voted to make the de facto president, Roberto Micheletti, a congressman for life, and granted permanent security details to some 50 top officials at taxpayers’ expense.
Mr Zelaya, elected as a Liberal, was toppled because he allied with Venezuela’s leftist president, Hugo Chávez, and went on to campaign for a new constitution, arousing fears that he wanted to perpetuate his power. Since sneaking back into the country in September he has lived in the Brazilian embassy in Tegucigalpa, the capital, under threat of arrest if he ventured outside. The attorney-general has also filed charges against the generals who illegally exiled Mr Zelaya. Mr Lobo wants an amnesty for both sides and has offered Mr Zelaya passage to the Dominican Republic.
Getting foreign recognition would release aid. The only presidents who plan to attend his inauguration are those of Panama and Taiwan. But the United States, Colombia, Peru and Costa Rica all recognised the election. Centre-left governments in neighbouring Guatemala and El Salvador are keen to restore relations. But the key will be gaining Brazil’s support. That will require an amnesty for Mr Zelaya, a unity government including some of his supporters and a willingness to discuss constitutional reform, says a Brazilian diplomat.
Mr Lobo also inherits an economic hole. Because of the world recession, the aid cut and the collapse in confidence triggered by the coup, the economy shrank by 3-4% last year. Public debt and the fiscal deficit have ballooned.
Outsiders have worried about the precedent set by the Honduran coup in a largely democratic region, especially if Mr Micheletti and his friends were to get away with dumping an elected president without penalty. So far they have done. The price has been paid by their people and it is still mounting.
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Friday, January 22nd, 2010
Every day more and more Europeans make Costa Rican their vacation destination.
According to the Cámara Nacional de Turismo (Canatur) more people from the “Viejo Continente” (Old Continent, as Europe is referred to in Costa Rica) are curious to discover the country they hear so much about.
Canatur says that in 2009, Costa Rica received 187.486 European tourists, the majority from Spain.
And for that Costa Rican tourism officials are attending the Feria Internacional de Turismo (Fitur) that is ongoing in Madrid, Spain, this week.
The objective for 2010 is increase on the 2009 numbers and at least 32 Costa Rican tourism operators are attending the Fitur.
For Costa Rica, Europe is an emerging market for tourists and an increase in European tourism will decrease Costa Rica’s dependence on American tourists that now make up the bulk of the almost 2 million annual visitors to Costa Rica.
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Friday, January 22nd, 2010
Bridgestone Americas Inc. and its parent company, Bridgestone Corp., are donating more than $75,000 to help with relief efforts in Haiti.
In addition, Bridgestone subsidiary Bridgestone de Costa Rica S.A. will lead the company’s relief efforts in Latin America.
“All of us have been affected by the heartbreaking images and devastating reports of destruction and chaos coming from Haiti,” says Christine Karbowiak, executuve vice president, community and corporate relations, Bridgestone Americas.
“But it’s also heartwearming to see the outpouring of support from around the globe. The global Bridgestone group has a long tradition of lending support in a crisis, and we’ll now join together to help survivors of the tragedy in Haiti.”
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Friday, January 22nd, 2010
The Tren Urbano – commuter train service – in Costa Rica has been a total success and for such the Instituto Costarricense de Ferrocarriles (INCOFER) has announced the expansion of the San José – Heredia line to the Curridabat on the east side of San José.
Miguel Carabaguíaz, president of the state railway, said work has begun to restore the train tracks between the Estacion del Atlantico to the Universdad Latina (Ulatina).
The expansion means that train commuters living in San Pedro and other points on the east side of San José can travel to and from Heredia with ease.
Carabaguíaz said that if all goes according to plan the service should be begin in the next three months.
The Tren Urbano began service between Ulatina and Pavas in October 2005. Daily thousands of commuters use the train service to get to and from work.
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Friday, January 22nd, 2010
The yo-yo dollar/colon exchange rate continues with a drop of ¢6 colones yesterday with dollar hitting a low of ¢546.50 colones for the buy per each us dollar, the lowest in the last 13 months.
This morning (Friday) the Banco Central de Costa Rica reference rate posts a buy of ¢546.50 and a sell of ¢556.56, falling steady all week from a high on Monday of ¢556.60 and ¢566.54, respectively, dropping ¢10 in less than a week.
The last time the exchange rate was this low was in December 05 2008, when it traded at $552.83, when it began its upward climb reaching ¢574.54 on December 5, 2009, and a high of ¢586.31 colones at the beginning of last November.
Some say the drop is related to the action of companies converting their dollars to colones to pay salaries, more specifically the large number of international companies in Costa Rica importing dollars and converting colones, to finance their operations.
The low dollar benefits those who companies and individuals, like importers or have loans in dollars or need the currency if planning a trip out of the country, as it takes less colones to buy dollars.
On the other side, the low dollar affects those individuals and companies who get paid or save in dollars and spend in colones.
Many foreigners living in Costa Rica fall in that, as they receive foreign payments, like pensions and other income, as well as habitually save in dollars.
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Thursday, January 21st, 2010
Wandering naked in the streets of a high class Heredia neigbourhood, a man led police to a stash of drugs, after neighbours called to complain.
The man, believed to be a Romanian national was reported walking naked on the streets of the residencial Bosques de Doña Rosa, behind the Cariari golf course, in San Antonio de Belén, Heredia, led police to 13 kilos of cocaine.
Police said the man, identified by his last name, Yován, was not coherent, told them of the drugs he has stashed in his apartment, who police say was dishelved and filthy.
Five police vehicles responded to the call, including members of the Fuerza Pública and Belén municipal police, one of which was rear ended by one of the two vehicles involved in a chase with police and believed to be associates of the naked man.
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