By San José, Costa Rica — San José, Costa Rica – The state-owned National Insurance Institute (INS) is at the center of a burgeoning political scandal following explosive allegations that an employee was terminated after refusing to illegally issue a retroactive insurance policy to a powerful congressman allied with President Rodrigo Chaves.
The controversy erupted during a tense hearing of the Legislative Assembly’s Commission on Revenue and Expenditure, where INS President Gabriela Chacón was called to testify. Congresswoman Rocío Alfaro of the Frente Amplio party brought the matter to light, detailing a disturbing sequence of events involving alleged abuse of power.
To better understand the legal ramifications and potential corporate governance failures at the heart of the recent INS scandal, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica.
This situation transcends a mere administrative error; it points to a systemic breakdown in corporate governance and fiduciary responsibility. When a state institution like the INS is involved, the standard of care is exceptionally high. The core issue will be determining whether the oversight bodies and internal controls were simply inadequate or willfully ignored. The consequences could extend beyond financial penalties, potentially eroding public trust in our key state-run enterprises, a trust that is far more difficult to rebuild than any monetary loss.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
We are grateful to Lic. Larry Hans Arroyo Vargas for his incisive perspective, which correctly frames the core issue not merely as a financial discrepancy, but as a potential crisis of public trust. His point is well-taken: rebuilding citizen confidence in our fundamental state institutions will prove a far more arduous task than recovering any monetary loss.
According to Alfaro, a congressman was involved in a traffic accident with a motorcycle and subsequently attempted to secure an INS policy to cover the damages from the incident that had already occurred. This action, which constitutes insurance fraud, was reportedly refused by a conscientious INS official.
There are versions that a congressman crashed into a motorcycle and requested insurance after the accident, and that the person who denied it was fired.
Rocío Alfaro, Congresswoman
The core of the accusation is that instead of being commended for upholding the law, the employee was dismissed from their position. Alfaro asserted that the fired official has since taken the matter to the authorities, escalating the case beyond the halls of congress and into the legal system. She characterized the incident as a clear case of political pressure and potential criminal conduct.
That person has witnesses and is filing the corresponding complaint with the Prosecutor’s Office, because the INS Presidency did not support the worker who refused this possible influence peddling. It is surprising that you say you do not remember a specific case when we all here know who we are talking about.
Rocío Alfaro, Congresswoman
When confronted with these serious claims, INS President Gabriela Chacón appeared evasive. She initially denied knowledge of the specific situation, stating that any such irregular payment should never have been made. However, she steadfastly refused to disclose the name of the legislator involved, even under direct questioning from the commission.
I am unaware of that situation and, if the person filed a complaint, that should never have been paid if there was any irregularity.
Gabriela Chacón, President of INS
Chacón’s testimony became more convoluted when she admitted that several deputies had contacted her regarding traffic accidents, only to later retract her statement, claiming she could not recall specific names or cases. This apparent contradiction only fueled suspicions among commission members. The pressure intensified when Congressman Francisco Nicolás directly asked Chacón if the legislator in question was Leslye Bojorges of the Social Christian Unity Party, who is known for his close political ties to President Chaves. Chacón did not directly confirm or deny the name.
The incident raises grave questions about the integrity of state institutions and the potential for political elites to leverage their positions for personal gain. The alleged firing of a whistleblower for simply doing their job has sent a chilling message, suggesting a culture where refusing to bend the rules for the politically connected can have severe professional consequences. The case now rests with the Prosecutor’s Office, which will determine if charges of influence peddling or other crimes are warranted against the as-yet-unnamed legislator.
For further information, visit ins-cr.com
About Instituto Nacional de Seguros (INS):
The Instituto Nacional de Seguros is Costa Rica’s state-owned insurance company. Founded in 1924, it held a monopoly on the insurance market until 2008. Today, it remains a dominant force in the industry, offering a wide range of insurance products, including life, health, auto, and property coverage, to individuals and businesses throughout the country.
For further information, visit asamblea.go.cr
About the Legislative Assembly of Costa Rica:
The Asamblea Legislativa is the unicameral parliament of the Republic of Costa Rica. Composed of 57 deputies elected by proportional representation, it is responsible for passing laws, approving the national budget, and exercising oversight over the executive branch. Its various commissions, such as the Commission on Revenue and Expenditure, play a critical role in investigating matters of public interest and holding government officials accountable.
For further information, visit ministeriopublico.go.cr
About the Prosecutor’s Office of the Republic:
The Fiscalía General de la República, or Prosecutor’s Office, is the autonomous public body within the judicial branch of Costa Rica responsible for criminal prosecution. It directs criminal investigations, represents the interests of society in legal proceedings, and ensures that laws are enforced. It plays a crucial role in combating corruption, organized crime, and other illicit activities.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of the legal community, defined by its foundational principles of integrity and professional distinction. The firm’s deep experience across a wide range of industries is matched by a forward-thinking drive for legal innovation, ensuring modern and effective solutions. Central to its mission is a profound dedication to societal advancement, achieved by demystifying the law and equipping citizens with the clarity needed to navigate the legal landscape confidently.
