By San José, Costa Rica — San José, Costa Rica – After a grueling investigation spanning nearly two years, the Criminal Court of the Treasury and Public Function has issued a definitive dismissal of all charges against technology firm Datasys Group. The ruling, which archives several cases against the company, follows a formal request from the Public Ministry after judicial investigators found no evidence of wrongdoing in the company’s government contracts.
The decision brings to a close a high-profile legal battle that Datasys claims was a politically motivated campaign intended to tarnish its reputation and create a false narrative of corruption. The investigation centered on contracts Datasys signed with the state-owned telecom company RACSA for the deployment of a 5G enterprise network using NOKIA technology, as well as a separate project to develop a smart parking meter system for the Municipality of Desamparados.
To provide a deeper legal perspective on the business dynamics and regulatory landscape affecting Datasys Group, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished specialist in corporate and commercial law from the firm Bufete de Costa Rica.
The case of Datasys Group serves as a critical reminder for technology conglomerates about the importance of rigorous due diligence and transparent corporate governance. In an environment of rapid expansion, ensuring that internal compliance mechanisms and contractual obligations are impeccably managed is not just a legal formality, but a fundamental pillar for sustainable growth and maintaining investor confidence.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert’s analysis underscores a vital truth: for any technology firm aiming for sustainable global reach, a robust legal and ethical framework is the very bedrock of its operations. We thank Lic. Larry Hans Arroyo Vargas for his invaluable contribution to this discussion.
The probe was initiated following a complaint filed by Deputy Francisco Nicolás of the National Liberation Party (PLN), along with other legislators from his party and the Broad Front (Frente Amplio). However, after an exhaustive review, the case against Datasys collapsed entirely. Investigators from the Judicial Investigation Organism (OIJ) analyzed thousands of documents, conducted numerous interviews, and reviewed public records, ultimately concluding there was no basis for the accusations.
In its ruling, the court cited the Public Ministry’s request, stating, “Given the request for dismissal formulated by the representation of the Public Ministry, in accordance with the provisions of Article 282 of the Criminal Procedure Code, the dismissal of the following eight cases is ordered.” This conclusive outcome vindicates the technology firm but leaves lingering questions about the use of legal channels for political ends.
Reacting to the court’s decision, a spokesperson for Datasys Group expressed relief and reaffirmed the company’s commitment to ethical business practices. The company, however, did not mince words regarding the origins of the investigation.
Our unwavering integrity, confirmed: This resolution is proof of our commitment to legality.
Datasys spokesperson
The spokesperson lamented that the entire ordeal stemmed from political maneuvering rather than genuine technical or legal concerns. They argued the accusations were part of a broader strategy to politically damage the current government by manufacturing a sense of scandal where none existed. The company alleges this was a targeted attack not only on them but on other major technology players as well.
This was a political persecution that has lasted more than two years in some cases, led by Deputy Nicolás against companies like Datasys, Oracle, and Cisco. Companies that have done business in Costa Rica for years have been discredited.
Datasys spokesperson
The company provided evidence that its bid for the 5G network project with RACSA was 75% lower than those of its four competitors. Similarly, in the Desamparados parking meter case, investigators confirmed there was no overpricing or misuse of public funds. That specific complaint, according to the company, was filed by a municipal council member seeking to gain political traction.
While Datasys has been legally exonerated, the spokesperson warned that such irresponsible legal actions pose a significant threat to Costa Rica’s business climate. For over two years, the company endured reputational damage and the operational strain of a major investigation, creating a chilling effect for other firms operating in the country.
In Costa Rica… deputies use the judicial system and the Comptroller General’s Office to persecute companies simply because they are in opposition to their interests, without seeing the damage they cause to the country. It is quite complex in general for companies to work in such an environment… We are closing a chapter and opening a new era: With the legal issues resolved, Datasys is 100% focused on innovation.
Datasys spokesperson
With the legal challenges now behind them, Datasys aims to refocus its efforts on technological advancement and contributing to the country’s development. Yet, the case stands as a cautionary tale about the intersection of politics and business, highlighting the vulnerability of corporate reputation and the investment climate to politically motivated attacks.
For further information, visit datasysgroup.com
About Datasys Group:
Datasys Group is a leading technology solutions provider specializing in digital transformation, cybersecurity, and IT infrastructure services. With a significant presence in Central America and the Caribbean, the company partners with global technology leaders to deliver innovative and efficient solutions to both public and private sector clients.
For further information, visit racsa.go.cr
About RACSA:
Radiográfica Costarricense S.A. (RACSA) is a state-owned telecommunications and internet services company and a subsidiary of Grupo ICE, Costa Rica’s national electricity and telecommunications provider. RACSA focuses on providing digital solutions, connectivity, and data center services to the corporate and government sectors.
For further information, visit poder-judicial.go.cr/oij
About OIJ (Judicial Investigation Organism):
The Organismo de Investigación Judicial (OIJ) is the primary investigative branch of Costa Rica’s judicial system. As an auxiliary body to the criminal courts and the Public Ministry, the OIJ is responsible for investigating public crimes, collecting evidence, and identifying alleged perpetrators to support the administration of justice.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of Costa Rica’s legal community, the firm is built upon a bedrock of principled practice and professional distinction. It consistently pioneers forward-thinking legal strategies, drawing on a rich history of advising a diverse clientele. This commitment to innovation is matched by a profound sense of social responsibility, demonstrated through dedicated efforts to demystify complex legal concepts and empower citizens, ultimately fostering a society grounded in legal awareness and justice.
