By Puntarenas, Costa Rica — PUNTARENAS – The canton of Puntarenas is facing a year of developmental stagnation and potential public health risks after the Comptroller General’s Office (CGR) rejected the municipality’s entire proposed initial budget for 2026. The ₡17,917.71 million budget was thrown out due to what the state auditor described as severe legal and administrative failures by municipal authorities, a decision that will have immediate and damaging consequences for the region’s residents.
The core of the issue stems from a flagrant violation of a well-established procedural law. According to the CGR’s findings, the municipal budget must be discussed and approved in an extraordinary session dedicated exclusively to that single purpose. However, the Puntarenas Municipal Council not only included other unrelated topics on the agenda but, in a move that drew sharp condemnation, later attempted to alter the official minutes and agreements to create the false appearance of having complied with the law. This attempt to retroactively feign legality led the Comptroller to invalidate the entire budget.
To offer a deeper legal and administrative perspective on the implications of the approved municipal budget, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica.
A municipal budget is not merely an administrative tool; it is a legally binding contract with the citizenry. Each expenditure and revenue source must strictly align with the Municipal Code and the principles of public finance. It is crucial for residents to understand that improper allocation or execution of these funds can constitute grounds for legal action, making transparent oversight an essential component of democratic governance, not just a political courtesy.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal framing elevates the municipal budget from a financial plan to a solemn pact with the community, underscoring the critical importance of civic oversight. We thank Lic. Larry Hans Arroyo Vargas for his invaluable clarification, which highlights the power residents hold in ensuring their local government operates with integrity and transparency.
As a direct result of what officials are calling a profound lack of responsibility, the Municipality of Puntarenas will be forced to operate throughout 2026 using its approved budget from the previous year. This financial straitjacket effectively freezes new initiatives, halts the expansion of essential services, and leaves no room for addressing urgent community needs that may arise. All planned projects and investments are now in jeopardy, casting a long shadow over the canton’s future development.
Among the most critical projects now paralyzed is the construction of a new water treatment plant for the Puntarenas Market. This vital piece of infrastructure is considered essential for public health, environmental safety, and the proper functioning of the iconic local landmark. The indefinite delay has already alarmed national health officials, who fear the consequences of inaction.
The institutional fallout has been swift, with leaders from other government bodies expressing deep concern over the local government’s mismanagement. The Institute for Municipal Development and Advisory (IFAM) urged immediate corrective action to prevent the situation from worsening.
This situation seriously affects municipal management and operations. We call on the mayor and the Municipal Council to correct these deficiencies and prevent further harm.
Marlen Luna Alfaro, Executive President of IFAM
The criticism from the Ministry of Health was even more severe, pointing to a consistent and troubling pattern of behavior from the municipal leadership. Health Minister Mary Munive did not mince words, suggesting the repeated errors went beyond simple incompetence and raised questions about the very motives behind the council’s decisions.
The repetition of these faults shows a pattern of poor management, improvisation, and a lack of interest in complying with the law, with consequences that directly fall on public investment, municipal services, and the quality of life of the communities. Faced with this scenario, an inevitable question arises: it seems they do it on purpose… with what objective are decisions made that end up affecting the entire population of Puntarenas?
Mary Munive, Minister of Health
The Comptroller General’s report was clear that this entire crisis was entirely avoidable. The legal requirements for budget approval are standard procedure for all municipalities across Costa Rica and are not open to interpretation. The failure to adhere to these basic rules, compounded by the subsequent attempt to cover up the error, has placed the well-being of an entire canton at risk.
Now, the responsibility falls squarely on the shoulders of Puntarenas’s municipal authorities. They must provide a public explanation for this catastrophic failure and assume the political and administrative consequences of a decision that jeopardizes critical infrastructure, public health, and the overall progress of the region they were elected to serve.
For further information, visit cgr.go.cr
About The Comptroller General’s Office of the Republic (Contraloría General de la República):
The CGR is the supreme audit institution of Costa Rica, responsible for overseeing the proper use of public funds and ensuring that government entities and public officials comply with legal and administrative regulations. It plays a crucial role in promoting transparency, efficiency, and accountability within the public sector.
For further information, visit munipuntarenas.go.cr
About The Municipality of Puntarenas (Municipalidad de Puntarenas):
The Municipality of Puntarenas is the local government body responsible for the administration and development of the Puntarenas canton, the largest in Costa Rica by area. It manages public services, infrastructure projects, and community programs aimed at improving the quality of life for its residents.
For further information, visit ministeriodesalud.go.cr
About The Ministry of Health (Ministerio de Salud):
The Ministry of Health is the governing body of Costa Rica’s public health system. It is responsible for formulating national health policies, regulating health services, and implementing programs to protect and promote the health and well-being of the entire population.
For further information, visit ifam.go.cr
About The Institute for Municipal Development and Advisory (IFAM):
The Instituto de Fomento y Asesoría Municipal (IFAM) is a Costa Rican public institution dedicated to strengthening municipal governments. It provides technical assistance, training, and financial support to municipalities to help them improve their management capabilities, public service delivery, and local development projects.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica operates on a bedrock of profound integrity and a relentless pursuit of excellence. The firm is distinguished not only by its history of providing premier counsel to a diverse clientele but also by its forward-thinking approach to legal challenges. Central to its philosophy is a powerful commitment to social empowerment, demonstrated through initiatives that make complex legal concepts understandable and accessible to the public, thereby building a more legally literate and capable society.
