Costa Rica Digest, Feb. 18

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NEWS DIGEST
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*Now Is Not The Time For International Warrant, Fiscal General Advises
Legislators

The Fiscal General de la República, Francisco Dall'Anese, affirmed yesterday
to the deputies of the Comisión del Gasto Público de la Asamblea Legislativa
that now is not the time to be asking for an international arrest warrant
against former Costa Rican president José María Figueres Olsen.

Figueres has failed on numerous occasion to go before their commission to
give explanation about his role in the receiving us$906.000 from the French
telecommunications firm for consulting fees, following the discovery of
other Instituto Costarricense de Electricidad (ICE) board members and
employees having received payments for the "big prize".

The big prize refers to the multimillion dollar contract that Alcatel won
from ICE to install 400.000 GSM cellular lines in the country.

Dall'Anese explained to the legislators that if Costa Rica issues an
international warrant for the capture of the former president, he will need
to be extradited back to Costa Rica under specific promises to try him on
charges of disobedience and that the Fiscalía may not be able to bring other
charges against the former president from evidence that is uncovered after
his return.

Dall'Anese added that at the moment there is no case against the former
president other than the charge of disobedience made by the legislators last
week, but the investigations into the role of Figueres in the ICE-Alcatel
scandal continue.

The Fiscal General asked the legislators to have patience while the process
is ongoing.

Dall'Anese, surrounded by body guards arrived at the Legislative Assembly to
make his recommendations to the legislators.


*TLC Demonstration in Front of U.S. Embassy

The area of Pavas and Rohrmoser saw a unprecedented police presence in all
areas, especially near or in front of various embassies that are located
there. Police on horseback patrolled the nearby streets of the U.S. embassy,
while a mini bus was used to dispatch uniformed officers at different
embassies. One officer we interviewed told us that the measure was one of
pre-caution.

The reason for this massive police action? Different groups had announced
that they would be organizing a demonstration against the Tratado de Libre
Comercio (TLC) - Free Trade Agreement - with the United States, calling it
"the greatest trick by the most powerful nation in the world."

The area in front of the U.S. embassy was secured with, allowing
demonstrators that included union leaders and businessmen to voice their
opinion without any problems.

One union leader, Albino Vargas, Secretario General de la Asociación
Nacional de Empleados Públicos y Privados (ANEP) said that this is only the
beginning. His union plans to continue it's demonstration on the streets of
Costa Rica, saying that the TLC agreement should not reach the Legislature.

The demonstrators delivered a letter to U.S. diplomats that was directed at
U.S. President George W. Bush. The letter explained the reasons for all the
negativity against the TLC.

The movement then moved from the U.S. embassy to the home of presidential
candidate Oscar Arías, who lives a short distance from the U.S. embassy,
then making their way to the Contraloría General de la República
(Comptroller's office) in La Sabana, where the protestors disbanded.


*Some 6.500 Taped Conversations in Madam Trial

The trial of Sinaí Monge continued yesterday, where the judges heard taped
telephone conversations and viewed undercover film footage that police used
to arrest the woman and make a case against her for "proxenetismo
agravado" - the prostitution of minors.

The court listened to politicians, well known soccer players, businessmen
and "ricachones" - 'rich folk' - ordering "fresh meat" from the the madam,
who operated her prostitution ring from her home in Hatillo 3, on a 24 hour
basis.

Evidence presented by the prosecution shows how neighbours were
"enchilado" - incensed - at the heavy vehicular traffic near the Madam's
home at all hours of the day and night, including vehicles with license
plates from the Legislative Assembly and the Poder Judicial.

The Fiscales de Delitos Sexuales - the sexual crimes prosecutors - with the
help of the telephone company were able to obtain some 6.500 conversation in
two months of wiretapping, authorized by a judge where the Madam's voice is
heard.

The tapes reveal that the men would be looking for "modelos" and
"estudiantes" - young girls that could put on shows of two, three or more,
all offered on tape by Sinaí for us$100.

The Spanish language daily newspaper, Diario Extra, as usual is publishing
grafic details of the conversations between the Madam and her clients,
including that of soccer player Bernal, who is being offered a 15 year old
girl with "un buen culo" - a nice ass!

The tapes also reveal foreigners - mostly Gringos - making calls to the
Madam requesting the services of her girls, for trips to the beaches or to
their hotel room. Sinaí would arrange for the girls to be transported to the
client, including arranging for them to take a local flight to the beaches.

In other cases, the Madam, would send a bus full of young girls to her
clients for them to choose from. The cost would range from ¢25.000 colones
to us$100, which the girls would then pay to Sinaí up to ¢10.000 colones,
her share for setting up the deal.

Sinaí was very charming to her customers. The tapes reveal that she knew
many of them as they were frequent customers.

Testimony by minors at the Madam's trial also revealed that the Madama's
brother operated a parallel operation, providing male prostitutes to male
clients. The prosecution is building a case to show that in Hatillo 3, the
home of Sinaí, there operated the 'sexo exprés' - express sex - business,
where customers could order prostitutes of both genders, including minors.
Some of the women who provided services to Sinaí's customers were married
and worked part-time to supplement the family income.

The prosecution is expected to make it's request to the court today for
punishment for the Madam.


*Arias Influence Reviewed

Costa Rican voters are divided on which politician could be the best rival
against former president Óscar Arias Sánchez in next year's election,
according to a poll by Borge y Asociados published in the Spanish language
daily newspaper Diario Extra.

22.6 per cent would choose Citizens Action Party (PAC) member Ottón Solís.

Antonio Álvarez Desanti of the Union for Change (UPC) is second with 17.9
per cent, followed by independent legislator Miguel Corrales, Otto Guevara
of the Movimiento Libertario (ML) and Juan José Vargas of Homeland First
(PP). The ruling Partido Unido Social Cristiana (PUSC) does not yet have any
prospective presidential hopefuls.

In March 2004, the 63-year-old Arias officially announced his intention to
run for president again as the candidate for the Partido Liberación Nacional
(PLN). The Costa Rican Legislative Assembly opted to bring back presidential
re-election in 2003. Arias headed the government from 1986 to 1990, and is
still regarded for his democratic proposals and actions on how to deal with
violence in Central America.

In a potential run-off between Arias and Solís, the former head of state has
a nine per cent advantage. The presidential election is tentatively
scheduled for February 2006.

Polling Data
A possible alliance of political parties to field a single candidate against
Oscar Arias Sánchez in the 2006 presidential election is being discussed.
Whether you support this idea or not, who do you prefer as a presidential
candidate?

Ottón Solís (PAC) 22.6%
Antonio Álvarez Desanti (PUC) 17.9%
Miguel Corrales (Ind.) 12.9%
Otto Guevara (ML) 11.5%
Juan José Vargas (PP) 0.2%
Unsure / No reply 34.8%

Who would you vote in a prospective run-off between Arias and Solís?

Oscar Arias (PLN) 43.8%
Ottón Solís (PAC) 34.8%

Source: Borge y Asociados / Extra
Methodology: Interviews to 425 Costa Rican adults, conducted from Jan. 31 to
Feb. 5, 2005. Margin of error is 5 per cent



*Procuraduría General Seizes Goods of Accused in ICE-Alcatel Scandal

In a follow up the ICE-Alcatel scandal that has seen various public
officials, including former president Miguel Angel Rodríguez behind bars or
under house arrest, the Procuraduría General de la República - the Attorney
General - received the green light to seize real estate and personal
property of those accused.

According to a information released by the Procuraduría an estimated ¢101
million colones (us$217.000 dollars) has been seized so far that belonged to
the former president, former Instituto Costarricense de Electricidad (ICE)
directors, Hernán Bravo, José Antonio Lobo, José Joaquín Fernández, former
ICE advisor Guido Sibaja, ICE engineer Rodrigo Méndez and former Alcatel
Costa Rica president, Edgar Valverde.

Seized as well are goods and property belonging to the companies Servicios
Notariales QC and Alcatel.

The seized goods include real estate, bank accounts and vehicles owned by
the individuals under investigation for their role in the share of the
"prize" - a commission paid by Alcatel for being awarded the multi million
dollar contract to provide 400.000 GSM cellular lines in Costa Rica.


*In Costa Rica, Bagel Entrepreneurs Offer Their Products to a New Market

It used to be that Costa Ricans didn't have many choices for breakfast: They
would almost always start the day with gallo pinto, a hearty combination of
leftover black beans and rice, with fresh cilantro thrown in for flavor.

Now the Central American country has another option - bagels.

About 4,000 bagels are made here each day - in a country of about four
million - and three companies are competing for the morning nosh market. Two
other bagel companies have closed.

It's not an outright bagel war, exactly, but Costa Rica still is an unlikely
venue for the occasional bagel battle.



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