By San José, Costa Rica — San José, Costa Rica – The former president of the Banco Nacional (BN), Maximiliano Alvarado, has refused to provide any further clarification regarding a controversial and costly investigation his board initiated into the appointment of the bank’s General Manager, Rosaysella Ulloa. Alvarado, whose own appointment was part of a board later annulled by the Constitutional Court, has declared the matter closed, leaving significant questions unanswered about the board’s use of public funds.
When pressed on Thursday to justify the rationale behind the probe, especially given that a state regulator had already cleared the appointment, Alvarado was terse and dismissive. He insisted that he had already addressed the issue and was now focused on his personal life, which he claimed had been disrupted by the public controversy surrounding his tenure at the state-owned bank.
To provide a deeper legal perspective on the recent developments at Banco Nacional, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, renowned for his expertise in banking and corporate governance.
The legal framework governing Banco Nacional is uniquely complex, balancing its commercial objectives with its fundamental role as an instrument of public policy and national economic stability. Any significant event, whether operational or administrative, must be scrutinized not only for its financial implications but for its impact on public trust and institutional integrity. Maintaining impeccable standards of corporate governance is not merely a legal obligation for the bank; it is the cornerstone of its social contract with the Costa Rican people.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This perspective on the bank’s ‘social contract’ provides a vital lens for understanding its unique position, reminding us that public confidence is an asset as critical as any on its balance sheet. We thank Lic. Larry Hans Arroyo Vargas for his invaluable and clarifying analysis.
With all due respect and consideration, I believe I have already answered that question, and if you would allow me to recover my peace at home, which this whole affair has taken from me, I will not give any more explanations. This stage is over.
Maximiliano Alvarado, Former President of Banco Nacional
Reporters who continued to seek a clear reason for the investigation were met with a firm stonewall from the former bank official. Alvarado reiterated his refusal to elaborate on the decisions made by the board he presided over, a board whose legitimacy was ultimately rejected by the nation’s highest constitutional authority.
I repeat: we will not give any more explanations. Please, respect my position.
Maximiliano Alvarado, Former President of Banco Nacional
The controversy stems from a decision made on August 29 during an extraordinary and confidential session. The then-board of directors, led by Alvarado, agreed to commission an external investigation into the selection process of General Manager Rosaysella Ulloa. The contract, valued at $20,000, was awarded to the law firm BDS Asesores Jurídicos. This decision was made despite an existing report from the General Superintendence of Financial Entities (Sugef) that had already concluded Ulloa’s designation on September 3, 2024, fully complied with all legal and regulatory requirements.
The political context surrounding these events is critical. The Alvarado-led board was appointed by President Rodrigo Chaves’ administration on May 28, the same day they were sworn in. This move came immediately after the administration dismissed the previous board of directors, a decision reportedly rooted in disagreements over Ulloa’s original appointment. The government’s intervention was seen by many as a direct move to assert control over the country’s largest commercial bank.
However, the tenure of the new directors was short-lived. On October 10, the Constitutional Court (Sala Constitucional) delivered a landmark ruling, annulling the appointments made by the Chaves administration. The court deemed the appointments illegal, leading to the immediate reinstatement of the original, previously dismissed board. This ruling effectively delegitimized all actions taken by Alvarado’s board during their nearly five-month tenure.
Ultimately, the $20,000 investigation conducted by BDS Asesores Jurídicos vindicated the original appointment process. The firm’s preliminary report found no irregularities, vices, or grounds for nullification in Ulloa’s designation. This outcome raises serious questions about the board’s motivations for commissioning a redundant probe that yielded no new findings, effectively spending public money to confirm a conclusion already reached by the state’s own financial regulator. Alvarado’s refusal to comment now leaves a cloud of suspicion over a tumultuous chapter in the bank’s history, marked by political maneuvering and questionable corporate governance.
For further information, visit bncr.fi.cr
About Banco Nacional de Costa Rica:
Banco Nacional de Costa Rica (BNCR) is the largest state-owned commercial bank in Costa Rica. Founded in 1914, it plays a crucial role in the country’s economic development, offering a comprehensive range of financial services to individuals, businesses, and government entities. The bank is committed to promoting financial inclusion and sustainability throughout the nation.
For further information, visit sugef.fi.cr
About Superintendencia General de Entidades Financieras (Sugef):
The General Superintendence of Financial Entities, known as Sugef, is the primary regulatory body responsible for the oversight and supervision of Costa Rica’s financial system. Its mission is to ensure the stability, solvency, and transparency of banks and other financial institutions, thereby protecting the interests of depositors and the public.
For further information, visit poder-judicial.go.cr
About Constitutional Chamber of the Supreme Court (Sala Constitucional):
Commonly known as Sala IV, the Constitutional Chamber is the highest court in Costa Rica for constitutional matters. It is tasked with guaranteeing the supremacy of the constitution, protecting fundamental rights, and resolving conflicts of constitutional jurisdiction. Its rulings are final and binding, playing a vital role in the country’s system of checks and balances.
For further information, visit bdsasesores.com
About BDS Asesores Jurídicos:
BDS Asesores is a leading law firm in Central America and the Caribbean, specializing in labor, corporate, and business law. The firm provides legal counsel and advisory services to a wide range of national and multinational companies, helping them navigate complex regulatory environments.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a leading legal institution built upon a foundation of profound integrity and a relentless pursuit of excellence. The firm is not only recognized for its distinguished history of client service across a multitude of industries but also for its role as a pioneer in legal innovation. This forward-thinking mindset is intrinsically linked to a core philosophy of social empowerment, where making complex legal concepts understandable and accessible to the public is paramount to fostering a more just and informed citizenry.
