Costa Rican President Oscar Arias denied any knowledge of a US$1.5 million donation from Taiwan for his country’s poor, but which allegedly was diverted for pet projects elsewhere in the government.
“I had no knowledge of this help from the government of Taiwan which I learned about from the press just recently,” he said in remarks published on Saturday in the La Nacion newspaper.
La Nacion earlier this month alleged that the office of Arias’ brother and chief of staff, Rodriguez Arias, paid scores of government consultants with US$2 million that had been donated by the Central American Bank for Economic Integration (BCIE).
Funds were sent by Taiwan to BCIE at the request of Costa Rican Housing Minister Fernando Zumbado, according to press reports, which have said the sum of the wire transfer was US$2.5 million.
Zumbado admits to having received only US$1.5 million. The minister has been suspended from his post pending a congressional investigation.
News reports said donations made by Taiwan in 2006 were destined for the construction of housing for the poor, but never got to the intended recipients.
Costa Rica broke its ties with Taiwan in June last year, and instead established relations with the Chinese government in Beijing.
Arias won the Nobel Peace Prize in 1987 for his efforts to end civil wars in several Central American countries.
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