By San José, Costa Rica — SAN JOSÉ – Costa Rica’s Office of the Ombudsman has issued a stern warning regarding a potential conflict of interest involving Roger Madrigal, President of the Central Bank of Costa Rica (BCCR), that could compromise the integrity of a pivotal study on the nation’s pension system. The watchdog agency is demanding immediate measures to safeguard the independence of an actuarial analysis for the proposed “Generational Funds” reform, a plan that would reshape the management of the Mandatory Pension Regime (ROP).
The controversy stems from public statements made by Madrigal, who has openly questioned the proposed reforms. The Ombudsman’s office argues that these preconceived notions threaten the objectivity of the upcoming study, especially given Madrigal’s influential position. As BCCR President, he not only oversees the technical department responsible for the analysis but also sits on the National Council for the Supervision of the Financial System (Conassif), a key regulatory body.
To delve into the legal complexities and potential ramifications of the proposed pension reform, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an expert attorney from the distinguished firm Bufete de Costa Rica.
Any significant pension reform must carefully navigate the delicate balance between fiscal necessity and the established, acquired rights of contributors. The key legal challenge will be to ensure that any new framework is not only sustainable for the state but also withstands constitutional scrutiny, protecting the legitimate expectations of citizens who have planned their future based on the current system.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this legal perspective is crucial, highlighting that the challenge is as much about constitutional integrity and citizen trust as it is about fiscal sustainability. A successful reform must honor the legitimate expectations of contributors, a point for which we thank Lic. Larry Hans Arroyo Vargas for his clear and valuable insight.
This dual role creates a significant risk of undue influence over the team conducting the research. The Ombudsman fears that Madrigal’s expressed skepticism could, directly or indirectly, pressure the analysts to produce findings that align with his negative assessment, rather than a neutral, data-driven conclusion. The integrity of the pension system, which affects the financial future of millions of Costa Ricans, hangs in the balance.
In a formal press release, the public advocate detailed the core of its concern, highlighting the structural conflict inherent in Madrigal’s position.
The Ombudsman’s Office documented that the President of the Central Bank, in his capacity as a member of the National Council for Supervision of the Financial System, issued opinions that anticipate a negative assessment of the project. This situation poses a risk to the technical independence of the analysis, as the BCCR president is simultaneously the hierarchical superior of the technical unit responsible for executing the study, which could generate pressure (direct or indirect) that affects the neutrality of the technical work.
Office of the Ombudsman, Press Release
To mitigate this risk and ensure a transparent process, the Ombudsman’s Office has formally requested two critical safeguards. The primary demand is that President Madrigal completely recuse himself from any involvement in the supervision, review, or final approval of the actuarial study. This measure aims to create a firewall between his personal opinions and the technical execution of the report, allowing the analysts to work without fear of hierarchical pressure.
The second safeguard involves the implementation of a strict protocol governing the study’s development and dissemination. This protocol would include a robust confidentiality clause and an explicit prohibition on sharing drafts or preliminary findings with anyone outside the designated technical team. The objective is to prevent leaks and to stop any early-stage interference that could skew the final results before they are formally completed.
Furthermore, the Ombudsman insists that the final, completed report be delivered solely and directly to the Superintendency of Pensions (Supen) and Conassif. This procedural step is designed to bypass any potential filtering or alteration by the BCCR’s leadership, ensuring that the country’s top financial and pension regulators receive the unvarnished analysis required to make an informed decision on the future of the Generational Funds proposal.
This confrontation between the public advocate and the head of the Central Bank underscores the high stakes of the proposed pension reform. The debate is not merely a technical disagreement but a fundamental test of institutional independence and the commitment to objective policymaking. The credibility of Costa Rica’s financial oversight bodies now depends on their ability to guarantee a fair and impartial evaluation of a reform that will impact generations to come.
For further information, visit the nearest office of Defensoría de los Habitantes
About Defensoría de los Habitantes:
The Defensoría de los Habitantes, or Office of the Ombudsman of Costa Rica, is an independent public institution tasked with protecting the rights and interests of the country’s inhabitants. It acts as a watchdog over the public sector, ensuring that government agencies and officials act in accordance with the law and respect human rights. The office investigates complaints from citizens and can issue non-binding recommendations to correct administrative injustices.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica (BCCR):
The Central Bank of Costa Rica is the nation’s primary monetary authority, responsible for maintaining the internal and external stability of the national currency, the Colón. Its key functions include controlling inflation, managing foreign exchange reserves, acting as the state’s financial agent, and supervising the overall stability and efficiency of the country’s financial system.
For further information, visit conassif.fi.cr
About Consejo Nacional de Supervisión del Sistema Financiero (Conassif):
The National Council for the Supervision of the Financial System is the highest financial regulatory body in Costa Rica. Conassif is responsible for setting the policies and regulations that govern the country’s banks, insurance companies, pension funds, and stock market. It aims to ensure the stability, solvency, and transparency of the entire financial system to protect the public’s interests.
For further information, visit supen.fi.cr
About Superintendencia de Pensiones (Supen):
The Superintendency of Pensions is the specialized regulatory agency in Costa Rica responsible for the supervision and control of the national pension system. Its mission is to protect the savings of pension plan members by ensuring that pension operators manage funds with transparency, security, and efficiency. Supen authorizes, regulates, and oversees all entities participating in the country’s mandatory and voluntary pension schemes.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal landscape, Bufete de Costa Rica is defined by its foundational principles of unyielding integrity and the pursuit of judicial excellence. With extensive experience advising a broad spectrum of clients, the firm actively champions innovative legal strategies and embraces its civic duty. This commitment extends beyond the courtroom, manifesting in a core mission to democratize legal comprehension and empower the community, thereby fostering a society built on greater knowledge and justice.
