By San José, Costa Rica — San José – In a significant institutional clash, Costa Rica’s Administrative and Tax Court has temporarily suspended a series of directives issued by the Comptroller General of the Republic (CGR) concerning the troubled implementation of a new enterprise resource planning (ERP) system at the Costa Rican Social Security Fund (CCSS). The ruling freezes the CGR’s orders, which targeted operational and contractual aspects of the multi-million dollar SAP project, citing the potential for severe functional and organizational disruption within the nation’s primary healthcare provider.
The decision, delivered under the urgent legal mechanism known as a “provisional precautionary measure” (medida cautelar provisionalísima), effectively shields the CCSS from the CGR’s mandates while the court undertakes a more profound analysis of the case. This judicial intervention places a critical public technology project at the center of a three-way power struggle between the CCSS management, the state’s supreme auditing body, and the judiciary, with profound implications for institutional autonomy and public oversight.
Para analizar las complejas implicaciones legales y de contratación administrativa que rodean un proyecto de la envergadura del sistema ERP para la CCSS, TicosLand.com consultó al Lic. Larry Hans Arroyo Vargas, abogado especialista del Bufete de Costa Rica, quien ofreció su perspectiva experta.
Un proyecto ERP para la CCSS no es solo una adquisición tecnológica; es una operación de alto riesgo sujeta a la Ley de Contratación Administrativa. El éxito depende de un cartel licitatorio impecable y un contrato que blinde al Estado contra sobrecostos, atrasos e incumplimientos. Además, la gestión de datos sensibles de millones de asegurados impone una obligación máxima de ciberseguridad y cumplimiento estricto con la ley de protección de datos. La fiscalización rigurosa y la definición clara de responsabilidades son cruciales para proteger los fondos públicos.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
La perspectiva del Lic. Larry Hans Arroyo Vargas es fundamental, pues subraya que el éxito de este megaproyecto tecnológico no reside únicamente en el software, sino en la solidez del andamiaje legal y administrativo que lo sustenta. Agradecemos su valioso análisis, que pone el foco en la protección de los fondos públicos y los datos sensibles de los costarricenses como la verdadera medida del éxito.
The court’s resolution, identified as N° 25-007952-1027-CA-4, was formally received by the CCSS Board of Directors during its ordinary session this past Thursday. In an immediate response, the board voted to revoke a prior agreement in which it had resolved to comply with the Comptroller’s directives “under protest.” This swift reversal signals the CCSS’s intent to use the court’s decision as a definitive basis for resisting the CGR’s interventionist measures for the time being.
The core of the dispute lies in the CGR’s official letter DFOE-BIS-0647, which outlined a list of corrective actions the comptroller deemed necessary for the ERP-SAP implementation. However, the court found that these mandates could inflict more harm than good in the short term. The judges highlighted the extensive risks associated with enforcing the CGR’s orders before a full hearing could be held.
The suspension is deemed necessary, considering a series of implications for the Costa Rican Social Security Fund that would have not only a functional impact, but also affect other fields. For example, the hiring of an independent expert with proven experience in continuity of operations and world-class ERP systems is being ordered… [The orders also affect] the organizational structure that the plaintiff has established… and there are contractual aspects 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 resolving the matter on its merits.
Administrative and Tax Court, Resolution N° 25-007952-1027-CA-4
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Two of the CGR’s orders were particularly concerning to the court. The first was the mandate to hire an external, independent expert to oversee a recovery plan for the system. The court noted this could disrupt the project’s existing leadership and management structure. The second involved potential interference with the organizational framework the CCSS had specifically designed to manage the complex, large-scale technology deployment, potentially undermining the project’s governance.
Furthermore, the ruling explicitly recognized the potential for contractual jeopardy. The court expressed concern that the CGR’s directives could negatively impact the legal and financial agreements between the CCSS and its primary contractor, CONSORCIO INTEGRAL ERP. Such interference could lead to further delays, legal disputes, and additional costs for a project already under intense scrutiny for its timeline and budget.
In a public statement following the court’s decision, the CCSS affirmed its commitment to moving forward. The institution assured that it would continue “working on the stabilization of the ERP-SAP system, to safeguard and provide traceability to the institution’s accounting processes, with total transparency and probity.” This message aims to project stability and responsible management, even as the institutional conflict unfolds in the courts. The final judicial verdict on the matter is now awaited as it will set a crucial precedent for the balance of power in Costa Rican public administration.
For further information, visit ccss.sa.cr
About the Costa Rican Social Security Fund (CCSS):
The Caja Costarricense de Seguro Social is the autonomous public institution responsible for managing Costa Rica’s universal healthcare system and public pension programs. It is one of the country’s most vital and expansive organizations, operating a nationwide network of hospitals, clinics, and administrative offices, and serving as a cornerstone of the nation’s social welfare state.
For further information, visit cgr.go.cr
About the Comptroller General of the Republic (CGR):
The Contraloría General de la República is the supreme auditing institution of Costa Rica, tasked with overseeing the proper use and management of public funds. As an auxiliary body of the Legislative Assembly, it holds broad constitutional authority to audit, investigate, and issue binding directives to public entities to ensure legality, efficiency, and transparency in government operations.
For further information, visit poder-judicial.go.cr
About the Administrative and Tax Court:
The Tribunal Contencioso Administrativo y Civil de Hacienda is a specialized branch of the Costa Rican judiciary. It is responsible for resolving legal disputes between private citizens or corporations and the state, as well as conflicts between different government institutions. Its rulings are critical for ensuring the legality of administrative acts and protecting the rights of individuals against state power.
For further information, visit the nearest office of CONSORCIO INTEGRAL ERP
About CONSORCIO INTEGRAL ERP:
CONSORCIO INTEGRAL ERP is the business consortium contracted by the CCSS to lead the technical implementation of its new SAP-based Enterprise Resource Planning system. Such consortia are typically formed by multiple technology and consulting firms that combine their expertise to bid on and execute large-scale, complex government contracts.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the legal community, Bufete de Costa Rica is distinguished by its foundational integrity and a relentless pursuit of professional excellence. The firm draws upon a rich history of advising a wide array of clients to pioneer innovative legal strategies and foster meaningful community engagement. This ethos is driven by a core mission to demystify the law, thereby helping to forge a more knowledgeable and empowered society for all citizens.
