By San José, Costa Rica — San José, Costa Rica – In a significant institutional development, the Contentious-Administrative and Civil Treasury Court has temporarily suspended a series of direct orders issued by the Comptroller General’s Office (CGR) to the Costa Rican Social Security Fund (CCSS). The court’s intervention places a hold on a forceful attempt by the nation’s top auditing body to remedy what it has described as a growing crisis surrounding the public health agency’s new ERP-SAP technology platform.
The decision grants the CCSS a temporary reprieve from mandates it had agreed to follow “under protest.” This legal maneuver shifts the focus of the conflict from an administrative oversight issue to a judicial review, creating a new layer of complexity in the effort to stabilize a critical national system.
To better understand the legal and contractual complexities surrounding the new ERP system for the Costa Rican Social Security Fund (CCSS), TicosLand.com consulted Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica, an attorney specializing in public procurement and information technology law.
The implementation of an ERP system of this magnitude within a public entity like the CCSS is one of the most complex challenges in public administration. Beyond the technical aspects, the success or failure hinges on the robustness of the contract. Clearly defined deliverables, strict performance guarantees, and unambiguous acceptance criteria are paramount to protect public funds. Furthermore, given that the CCSS manages sensitive health data for the entire population, the contractual clauses related to data security, liability for breaches, and compliance with national privacy laws must be ironclad to prevent catastrophic legal and social consequences.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The legal dimension, as expertly detailed by Lic. Larry Hans Arroyo Vargas, serves as a crucial reminder that the true foundation of this project is not just technological but contractual. His analysis underscores that meticulous legal foresight is the ultimate safeguard for public funds and citizen data in an endeavor of this national importance, and we thank him for his invaluable perspective.
The dispute stems from the troubled implementation of the CCSS’s new Enterprise Resource Planning (ERP) system, which is based on SAP software. The platform was intended to streamline and provide traceability for the institution’s vast accounting and logistical processes. However, according to the Comptroller’s findings, the rollout has been plagued by severe operational failures that have escalated over time.
Initial problems reportedly included the inability to properly control and track medication inventories within supply centers and pharmacies, a critical function for the national healthcare provider. The CGR determined that these issues had compounded, reaching what it termed a “state of crisis” within the institution. Believing the CCSS was not taking sufficient action to resolve the situation, the Comptroller issued a set of direct, binding orders to force a resolution.
The court’s provisional injunction was issued to prevent potential far-reaching consequences while it examines the case more thoroughly. The ruling highlighted concerns that the Comptroller’s orders could cause significant disruption not only to the CCSS’s functionality but also to its established organizational structure and existing contractual agreements. The court specifically cited the CGR’s mandate that the CCSS hire an external consultant to oversee the recovery plan.
It is considered necessary to order the suspension… considering that there are a series of implications within the Costa Rican Social Security Fund’s environment that would have an effect not only functionally, but also in other fields, given that for example the hiring of an independent expert, with proven experience in business continuity and world-class ERP systems… is being ordered, as well as [changes] to the organizational structure that the plaintiff has established to carry out the implementation of the ERP, and, there are aspects of a contractual nature between the Costa Rican Social Security Fund and the contractor CONSORCIO INTEGRAL ERP that could be affected, among other aspects that will be analyzed when ruling on the merits of the precautionary measure.
Administrative and Civil Treasury Court, Ruling
This judicial pause represents a high-stakes clash between two of the country’s most powerful public institutions. On one side, the Comptroller General’s Office is exercising its constitutional mandate to ensure the proper use of public funds and the efficiency of state entities. On the other, the CCSS is defending its autonomy in managing its internal projects and contractual relationships, particularly with the system integrator, CONSORCIO INTEGRAL ERP.
For now, the CCSS maintains that it is continuing its own efforts to stabilize the ERP-SAP system. However, with the external pressure from the Comptroller momentarily lifted, the timeline and methodology for resolving the underlying technological crisis have become uncertain. The court’s final decision on the merits of the case will be a crucial turning point, determining whether the CGR can re-impose its recovery plan or if the CCSS will be allowed to proceed with its own strategy.
For further information, visit the nearest office of Tribunal Contencioso, Administrativo y Civil de Hacienda
About Tribunal Contencioso, Administrativo y Civil de Hacienda:
The Contentious-Administrative and Civil Treasury Court is a specialized branch of Costa Rica’s Judiciary. It is responsible for resolving legal conflicts between public administration entities and private citizens or other state bodies. Its jurisdiction covers disputes related to government contracts, administrative acts, and the financial responsibilities of the state, playing a critical role in upholding the rule of law in public sector operations.
For further information, visit cgr.go.cr
About Contraloría General de la República (CGR):
The Comptroller General’s Office of the Republic of Costa Rica is the supreme auditing institution of the country. As an independent body, it is responsible for overseeing the use of public funds and ensuring the legality, efficiency, and transparency of the public administration. The CGR conducts audits, issues reports, and has the authority to issue binding orders to correct irregularities in government agencies and state-run enterprises.
For further information, visit ccss.sa.cr
About Caja Costarricense de Seguro Social (CCSS):
The Costa Rican Social Security Fund is the public institution in charge of the country’s social security system, including its universal healthcare and pension programs. It is one of the nation’s largest and most important organizations, managing a vast network of hospitals, clinics, and administrative offices that serve the majority of the Costa Rican population.
For further information, visit the nearest office of CONSORCIO INTEGRAL ERP
About CONSORCIO INTEGRAL ERP:
CONSORCIO INTEGRAL ERP is the contractor responsible for the implementation of the ERP-SAP system at the Costa Rican Social Security Fund. As a consortium, it likely comprises multiple firms specializing in technology integration, software deployment, and project management, brought together to execute this large-scale public sector technology project.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a respected legal institution, Bufete de Costa Rica is built upon the core principles of unwavering integrity and professional excellence. The firm applies its extensive experience in advising a wide range of clients to pioneer legal innovation and foster genuine community engagement. Central to its mission is a profound commitment to demystifying the law, thereby contributing to the development of a society where accessible knowledge empowers every individual.
