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¢600 www.ticotimes.net Friday, February 9, 2007 – San José, Costa Rica Since 1956 NEWS LOOK BOTH WAYS Photo by Mónica Quesada New Mayors Begin Tackling Priorities Some of the 81 municipal leaders who took office this week discussed their goals and priorities with The Tico Times. Page 8 First Charges Filed in Alcatel Corruption Case A former Costa Rican Electricity Institute (ICE) board member has been charged with taking bribes from the multinational telecom firm Alcatel. Page 4 BUSINESS Legal Action Stalls Assembly’s CAFTA Debate Legislative deliberations on the controversial U.S. free-trade agreement have been delayed by a law- suit filed by the opposition parties. Page 12 WEEKEND Costa Rica’s nearly 1 million students headed back to school Wednesday, and Transport Minister Karla Love is on the Air With Dave and Margie González, above with 6th grade student Luis Marín of the Rincón Grande School in the western San José sub- urb of Pavas, turned out to tout the government’s new efforts to make sure they got there safely. The ministry DJs Dave “the Dude” Scott and Margie Flaum, plans to distribute 4,000 vests for crossing guards and 11,000 reflective stickers for students’ backpacks this year recently married, are teaming up in the studio in hopes of reducing the number of traffic accidents involving minors. with a morning show to debut Valentine’s Day. Page W1 Fires Prompt Safety Overhaul By Leland Baxter-Neal disposal will remain unresolved for the time worst-ever chemical disaster erupted Dec. 13, Tico Times Staff being. 2006, when an explosion at a chemical storage Because Costa Rica’s government has no plant outside the Caribbean port of Moín In the wake of safe containment site for chemical waste, the quickly became a raging fire with flames bil- two fatal chemical disposal of such substances is often left to the lowing stories high. A massive black cloud of fires in late 2006, discretion of the companies involved. Lax su- toxic smoke was visible for miles around and the government has pervision means waste leaks into Costa Rica’s across the country on special live news cover- been scrambling to environment, and a lack of options has meant age. Two workers died from burns sustained THE NICA TIMES get a handle on che- that when the government is forced to deal during the inferno (TT, Dec. 15, 2006). mical and fuel safe- with hazardous materials after spills or other Several weeks earlier, on Oct. 29, two sib- Tourism Director ty in Costa Rica. emergencies, it has resorted to sending them to lings ages 5 and 13 burned to death in the Envisions Future But as officials work landfills. Officials, however, say the Health backseat of their mother’s car after a gas spill to prepare new regulations and legislation, it Ministry is now shying away from this practice. at the Shell station where they were filling up Nicaragua’s new director of Costa Rica’s most recent and possibly Page 11 appears that the problem of hazardous waste tourism discuses his vision for the future in an exclu- sive interview with The Japan’s Gifts Raise Eyebrows Onlookers Scarce Nica Times. By Dave Sherwood On the wall beside him, an engraved At Villalobos Trial EVERY WEEK plaque detailed the generous donation of the Tico Times Staff By Leland Baxter-Neal Japanese Embassy to the school: new class- Editorial 16 Business & Real Tico Times Staff Toshihisa Mi- rooms, a refrigerator for the kitchen, a fresh Letters 17 Estate 12 yamoto bowed ever coat of paint for the walls, new roofs and Cartoon 17 Crossword 23 The anticipated trial of financier so slightly from the ceramic tile floors to hold down dust in the Osvaldo Villalobos got under way this week Classifieds 18 Weather 23 hip as he greeted dry months. with thousands of affected investors not 48 PAGES Virgita Vargas, the “The children are so excited. Now there Weekend showing up. principal of La Ca- are enough rooms for all the students to Horoscope W4 Of an estimated 6,000-plus people, lifornia Elementary attend school at once, and everything is so W8 mostly North Americans, Europeans and Exploring CR School, in the sha- much cleaner. We have a new sense of pride wealthy Costa Ricans, who say they lost bet- Fishing Report W12 dow of Juan San- in our school,”Vargas said. ween thousands and millions of dollars in the Movies W13 tamaría International Airport in Alajuela, Miyamoto, undersecretary of economy Page 2 Calendar W14 west of San José. Page 3 2 | NEWS | THE TICO TIMES – February 9, 2007 Trade Minister Announces Defense Promises to Return Funds Negotiators for E.U. Pact Page 1 Foreign Trade Minister Marco Vinicio Empty Seats: Ruiz announced Wednesday that a team of defunct investment operation known as The anticipated three Costa Ricans, two of whom helped “The Brothers” – allegedly run by Osvaldo trial of Osvaldo negotiate a controversial trade pact with the and his fugitive brother Luis Enrique United States in 2003, has been chosen to Villalobos represent the country in negotiations for a Villalobos – only a few were present at the began this week start of the trial Monday. At least two fell Central American-European Union asleep during the dry, initial proceedings. with a smaller- Association Agreement. At its most crowded, a sprinkling of than-expected Chief negotiator Roberto Echandi – fewer than 20 onlookers peppered the 408- audience. who is also Costa Rica’s ambassador to the European Union – as well as adjunct nego- seat, improvised courtroom in the Miguel Officials opened tiators Cristian Guillermet, representing the Blanco Quirós auditorium in the Judicial the trial in an Foreign Relations Ministry, and Fernando Investigation Police (OIJ) building in down- Ocampo, representing the Foreign Trade town San José. The auditorium was outfitted auditorium, but Ministry (COMEX), will work with repre- for the trial in anticipation of a multitude of only a few sentatives of other Central American coun- investors, many of whom had their life sav- investors tries in the coming months to prepare for ings invested when the Villalobos brothers showed up to the first E.U. meetings, expected to begin closed up shop in 2002. mid-year, Ruiz told reporters following A tired-looking and soft-spoken Osvaldo see the proceedings. President Oscar Arias’ weekly Cabinet meet- was present at the trial this week, but will not ing. testify until the end of proceedings, accord- Mónica Quesada | Tico Times Asked why he chose Echandi and ing to his defense team. He declined to talk Ocampo, who served on the often-criticized to The Tico Times. The Storied History While lead prosecutor Espinoza refused to comment on the case, the government’s negotiating team of the Central American Observers were nearly outnumbered by Osvaldo is facing charges of money laun- Free-Trade Agreement (CAFTA) – activists the judges and lawyers until the handful of accusation called The Brothers “a family dering, fraud and illegal financial intermedi- business,” and a described a “circular system at anti-CAFTA marches often claim the pact attorneys representing private cases added to ation – for which he could get up to 36 years was negotiated “behind the backs of Costa the public prosecution’s case (known as of receiving and paying” investor funds, sim- in prison if convicted on all charges – in con- ilar to a pyramid or Ponzi scheme. The pros- Ricans” and that negotiators ceded too querellas) one by one announced they had nection with The Brothers, which for more much ground – Ruiz said they’re simply the come to an agreement with the defendant, ecution alleged Osvaldo and Luis Enrique than 15 years paid monthly interest pay- used Ofinter and 22 other corporations most qualified people for the job. dropped their charges against Osvaldo and ments of 2.8-3% of investments, which in “It’s not a political team. It’s a technical left the building. By the end of the day, gov- allegedly linked to the Villalobos brothers to the later years were accepted only in sums of channel funds through different bank team,” he said, adding later that, “we need ernment prosecutors Walter Espinoza and $10,000 or more. the best people there, and these are the best Ilem Meléndez were joined only by Ewald accounts and investments, hide the origin of Though it was run out of the same office the money and eventually use the same people.” Acuña – a well-known lawyer representing However, the government plans to where Osvaldo operated a money exchange money to pay investors’ monthly interest. hundreds of investors in their claims against “learn from the experiences we had (with business, Ofinter S.A., Osvaldo’s defense The Brothers’ investments did not produce the Villalobos brothers. CAFTA) and involve the ministries a great insists their client had nothing to do with the nearly enough to account for the operation’s Whether the lawyers’ clients caved to the deal” in the negotiation process, as well as investment service run by Luis Enrique. high returns, and investors were given sup- months of pressure exerted by Villalobos social groups, Ruiz said. The Foreign “We are going to prove that there is not posed guarantee checks that in reality were supporters on those who filed personal Ministry and COMEX will work with min- one criminal act that has been committed by linked to a bank account with less than fraud claims (TT, Jan. 19) is unknown. But Osvaldo Villalobos. Osvaldo Villalobos’ busi- isters to ensure the sectors under their lead- Osvaldo’s defense team announced it would $5,000 and which had been inactive since ership are represented, and will coordinate ness was always a legal, decent business, a 1997, the prosecution alleged.

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