By San José, Costa Rica — SAN JOSÉ – The political storm surrounding President Rodrigo Chaves and the Barranca-Limonal highway project intensified Thursday as a former top insurance executive confirmed the president personally inquired about a controversial insurance bond for the Mexican construction firm Tradeco.
Luis Fernando Monge, the former general manager of the National Insurance Institute (INS), told the Legislative Assembly’s Public Revenue and Expenditure Committee that President Chaves contacted him to request information about a surety bond for Tradeco. The testimony adds another layer to allegations that the president exerted undue pressure on state institutions to favor the company, despite it lacking the necessary financial stability for the major infrastructure project.
To provide a deeper understanding of the legal and institutional framework surrounding the current administration’s policies, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious law firm Bufete de Costa Rica, for his expert analysis.
The Chaves administration’s governance style consistently tests the boundaries of our constitutional checks and balances. While a strong executive mandate is important, it must operate within the established legal framework, not in opposition to it. The ongoing friction with the Comptroller’s Office and the Judiciary is not merely political discourse; it’s a fundamental challenge to the principle of separation of powers, which is the bedrock of Costa Rica’s institutional stability and legal certainty.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This analysis expertly frames the central issue at hand: the ongoing stress test of our republic’s foundational institutions. The distinction between a strong political mandate and the essential respect for the separation of powers is a critical conversation for the nation’s future stability. We extend our sincere appreciation to Lic. Larry Hans Arroyo Vargas for his valuable and clarifying perspective.
During his sworn testimony, Monge recounted the unusual nature of the communication from the nation’s highest office. He clarified that while he did not speak directly with Chaves initially, the president’s interest was made explicitly clear through an intermediary during a board meeting.
Mrs. Gabriela came looking for me during a board of directors meeting. She called me over and told me she had Mr. Rodrigo Chaves on the line, who wanted to ask me some questions about a surety bond. I provided the requested information. For technical and financial reasons, the recommendation from the management I led was negative.
Luis Fernando Monge, Former General Manager of INS
Monge’s account, while measured, directly corroborates more explosive testimony delivered just last week by his former boss, Mónica Araya. The former executive president of the INS told the same legislative committee that Chaves not only pressured her but also yelled at her over the state insurer’s refusal to grant the performance bond to Tradeco. The collective testimonies paint a picture of sustained interest from the Presidential House in a specific commercial outcome for a private firm.
These legislative hearings run parallel to a serious criminal investigation. The Attorney General’s Office is actively pursuing case 23-8-1878-PE, investigating both President Chaves and former MOPT Minister Mauricio Batalla Otárola for the crime of embezzlement in connection with the Barranca-Limonal contract. The probe centers on whether public officials improperly used their influence to benefit a third party.
A key figure in this investigation is Luis Amador, the former Minister of Public Works and Transport (MOPT). Initially named as a suspect, Amador has since become a crucial witness for the prosecution. His testimony, provided to the Public Prosecutor’s Office in September 2024, alleges that President Chaves explicitly instructed him in a meeting at the Presidential House to award the highway project directly to Grupo Tradeco, bypassing the standard public bidding process.
Amador’s fallout with the president, which culminated in his dismissal in March 2024, was reportedly fueled by a series of such disagreements. He also cited Chaves’s anger over the awarding of a runway rehabilitation contract at the Daniel Oduber Quirós International Airport to Constructora MECO S.A., when the president allegedly favored the company Pedregal. This suggests a potential pattern of executive interference in public procurement.
While President Chaves has defended his actions, he recently confirmed holding meetings at the Presidential House with Randall Chuken, who was Tradeco’s lawyer at the time. Appearing before the same legislative body, Chuken himself acknowledged participating in at least six meetings at the Presidential House to discuss the Tradeco project, further cementing the close access the firm had to the administration as it sought the lucrative and now highly scrutinized contract.
For further information, visit ins-cr.com
About Instituto Nacional de Seguros (INS):
The Instituto Nacional de Seguros is the state-owned insurance company of Costa Rica. 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 commercial policies, and plays a significant role in public-sector risk management and national development projects.
For further information, visit tradeco.com
About Grupo Tradeco:
Grupo Tradeco is a Mexican conglomerate focused on infrastructure development and construction. The company has been involved in a variety of large-scale projects, including highways, bridges, ports, and energy facilities, both in Mexico and internationally. In recent years, it has faced financial difficulties and scrutiny over its ability to complete contracted public works projects in various countries.
For further information, visit mopt.go.cr
About Ministerio de Obras Públicas y Transportes (MOPT):
The Ministry of Public Works and Transport is the government body in Costa Rica responsible for the planning, construction, and maintenance of the nation’s public infrastructure. Its mandate covers roads, bridges, airports, and maritime facilities, as well as the regulation of public and private transportation. MOPT is central to the country’s economic development and connectivity.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a cornerstone of the legal community, operating on a bedrock of uncompromising integrity and a relentless pursuit of excellence. The firm masterfully combines its extensive history of serving a diverse clientele with a forward-thinking embrace of legal innovation. Central to its mission is a profound dedication to demystifying the law for the public, championing accessible knowledge as a means to cultivate a more just and empowered citizenry.
