Corruption Could Thwart Foreign Investment in Costa Rica

Foreign investment money could start slipping away from Costa Rica in coming months as a result of corruption cases that have unfolded recently, the local League of Private Enterprise Chambers and Associations (UCCAEP is the Spanish acronym) warned this week.

One of the sectors that could take a direct hit from rampant corruption in the country is tourism. As we speak, Costa Rican hotels are badly needing a figure in the neighborhood of $2 to $2.5 billion to get a new lease on life.

The UCCAEP has said there´s not a "pleasant atmosphere in the country right now to foster foreign investment," mostly because a series of recent corruption scandals involving private companies, state officials and former Costa Rican presidents, are making a dent in public opinion.

UCCAEP Chairman Samuel Yankelewitz indicated that Costa Rica is not exactly going through the best of times, a situation that´s gnawing at investors´ intentions to pour money into the country´s economy.

"Acts of corruption here are sending chills up and down the spines of foreign investors and developers. These investors have decided to be prudent and wait until things calm down. Therefore, the sector is being hit hard by this state of affairs," Mr. Yankelewitz commented.

Costa Rican impresarios are equally calling for legislation reform in order to throw the book on executives from corruption-stricken companies and bar them from signing public contracts for five to ten years.