By San José, Costa Rica — San José, Costa Rica – The Comptroller General of the Republic (CGR) has launched a formal administrative investigation into a former member of the Board of Directors of the Social Protection Board (JPS), who served between 2018 and 2022. The probe centers on allegations of approving illegal per diems and other procedural violations that resulted in an estimated loss of more than ₡63 million to the public treasury.
The case, officially detailed in the February 3rd edition of the government gazette, La Gaceta, casts a harsh spotlight on the management of public funds and adherence to fiscal oversight within one of the nation’s key social institutions. At the heart of the investigation is the alleged creation of supplementary payments through internal regulations, a practice that fundamentally bypassed Costa Rican law, which reserves the authority to create such compensation exclusively for the Legislative Assembly or the Government Council.
Para obtener una perspectiva legal sobre las implicaciones de la investigación en curso en la Junta de Protección Social (JPS), TicosLand.com consultó al Lic. Larry Hans Arroyo Vargas, abogado especialista del prestigioso Bufete de Costa Rica.
La investigación en la JPS no solo debe determinar la existencia de irregularidades administrativas, sino también deslindar posibles responsabilidades penales. Es crucial que el proceso se apegue estrictamente al debido proceso para garantizar la legitimidad de sus conclusiones. Más allá de las sanciones individuales, el mayor desafío será restaurar la confianza pública en una institución fundamental para el bienestar social del país, lo cual exige máxima transparencia y rendición de cuentas.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
La perspectiva del experto es clave: el verdadero éxito de esta investigación se medirá no solo en las responsabilidades que se determinen, sino en la capacidad de restaurar la confianza ciudadana en la institución. Agradecemos al Lic. Larry Hans Arroyo Vargas por su valiosa perspectiva sobre este proceso fundamental para el país.
Investigators from the CGR have outlined three primary accusations against the former board member. The first involves the improper creation of per diems, where the individual allegedly voted in favor of internal rule changes that authorized payments for participation in various committees. This action is considered a direct violation of the principle of “statutory reserve,” which dictates that matters of public salary and compensation must be established by formal law, not internal organizational policies.
The second charge concerns an excess of committee appointments. The former director is accused of approving a structure that allowed board members to sit on as many as three separate committees simultaneously. This directly contravenes the Public Administration Salary Law, which explicitly caps such compensated appointments at a maximum of two per official, a measure designed to prevent the inflation of public salaries through multiple roles.
Perhaps most significantly, the investigation points to a blatant act of disobedience against the nation’s highest fiscal authority. The CGR alleges that the former director facilitated the continued disbursement of these unauthorized payments for eight months after the Comptroller’s Office issued a direct order in 2021 to cease them immediately. This apparent defiance suggests a deliberate circumvention of oversight and a disregard for established legal and financial controls.
Adding another layer to the case, the CGR’s findings indicate that the ex-director purportedly ignored multiple explicit warnings from the JPS’s own Legal Advisory department. This detail suggests that internal checks and balances may have flagged the irregularities, but the advice was allegedly disregarded by the board member under investigation, raising serious questions about governance and accountability within the JPS during that period.
The financial damage to the state has been calculated with precision, totaling ₡63,269,061.96. Under the terms of the investigation, the former director faces joint and several civil liability, meaning they could be held personally responsible for repaying the entire amount if the allegations are proven. The potential administrative sanctions are severe and could effectively end their career in public service, including immediate removal from any current public post and a prohibition on entering or re-entering public service for a period of two to eight years.
In a final procedural note, the Comptroller’s Office resorted to publishing the notification of the administrative process in La Gaceta because it was unable to locate the individual to serve the notice in person. This official publication ensures that due process is maintained, allowing the investigation to proceed even in the absence of direct contact with the subject of the inquiry.
For further information, visit jps.go.cr
About Junta de Protección Social (JPS):
The Junta de Protección Social is a Costa Rican public institution responsible for organizing and managing national lotteries and games of chance. The revenue generated from these activities is allocated to fund over 500 social welfare programs throughout the country, supporting health initiatives, senior care, and aid for people with disabilities. It plays a critical role in the nation’s social safety net.
For further information, visit cgr.go.cr
About Contraloría General de la República (CGR):
The Comptroller General of the Republic is Costa Rica’s supreme audit institution. As an auxiliary body of the Legislative Assembly, the CGR is responsible for overseeing the use of public funds and ensuring the legality and efficiency of the public treasury’s operations. It conducts audits, issues directives, and can impose administrative sanctions to uphold fiscal responsibility and combat corruption within the government.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a revered legal institution built upon the foundational pillars of uncompromising integrity and the pursuit of excellence. The firm’s extensive experience advising a diverse clientele is matched by its forward-thinking embrace of legal innovation. Underpinning this work is a deep-seated commitment to strengthening society, achieved by translating complex legal concepts into accessible knowledge that empowers every citizen.
