Law against corruption and illicit enrichment in public functions UT JUN2012

Unofficial Translation

THE LEGISLATURE OF THE REPUBLIC OF COSTA RICA DECREES: LAW AGAINST CORRUPTION AND PUBLIC ILLEGAL ENRICHMENT Law No. 8422

CHAPTER I General Provisions ARTICLE 1. - Aims The purposes of this Act shall prevent, detect and punish corruption in the exercise of public functions.

ARTICLE 2. - Public Server For purposes of this Act, be deemed a public servant any person who provides services in the organs and entities of public administration, state and non-state the name and on behalf of this and as part of their organization under an act of investiture and with complete independence of the mandatory nature, representative, unpaid, permanent or public of the respective activity. The terms official, public employee server and will be equivalent for the purposes of this Act.

The provisions of this Act shall apply to officials already people working for public companies in any form and for public authorities in charge of arrangements under the common law also to the trustees, administrators, managers and legal representatives of legal persons in their care, manage or operate funds, goods or services of public administration, by any title or type of management.

ARTICLE 3. - Duty of probity The public official is obliged to direct its activities to the satisfaction of the public interest. This duty is manifest mainly to identify and address priority community needs, in a planned, regular, efficient, continuous and equal to the inhabitants of the Republic, also by demonstrating honesty and good faith in the exercise of powers conferred by law, ensure that decisions taken in pursuance of its powers conform to impartiality and the specific aims of the institution in which he works and, finally, to manage public resources in accordance with the principles of legality, efficiency, economy and efficiency, reporting successful.

ARTICLE 4. - Violation of the duty of honesty Without prejudice to the civil and criminal liabilities as appropriate, breach of duty of probity, duly 1

verified and after defense shall constitute just cause for removal from public office without employer liability.

ARTICLE 5. - Fraud Act The administrative function exercised by the State and other public bodies and the conduct of private actors in relations with those who carried out under the text of a rule of law and achieving a result that does not conform to the satisfaction of public purposes and the legal system, shall be deemed executed in fraud of law and not impede the proper implementation of the rule of law is intended to circumvent.

ARTICLE 6. - Nullity of acts or contracts resulting from fraud law The evasion of the law will lead to the annulment of the administrative or any derivative contract and compensation for damages caused to the public administration or third parties. In administrative proceedings, nullity may be declared by the relevant public entity or by the Comptroller General of the Republic, whether the legislation has been attempted to circumvent belongs to the order that regulates and protects the Treasury.

If the annulment is about acts declaratory of rights, must begin the respective process of harmfulness, except as provided in Article 173 of the General Law of Public Administration, No. 6227 of May 2, 1978, in which case action should be taken of accordance with established there.

ARTICLE 7. - Free access to information Public interest is information related to income, budgeting, custody, control, management, investment and expenditure of public funds and the information necessary to ensure the effectiveness of this Act, in relation to facts and behavior of public officials.

However, the Comptroller General's Office may review only private documents in accordance with Article 24 of the Constitution and Article 11 of this Act.

ARTICLE 8. - Confidentiality of the complainant in good faith and information arising from the opening of administrative proceedings The Comptroller General's Office, Management and internal audits of public companies and institutions, keep confidentiality about the identity of citizens who in good faith complaints filed with their office for corruption.

The information, documentation and other evidence of research carried out internal audits, the Administration and the Comptroller General of the Republic, whose results can lead to the opening of an administrative proceeding shall be confidential during the formulation of relevant report.

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Once notified of the report until the final resolution of the administrative proceeding, the information contained in the record will be classified as confidential, except for the parties involved, which will have free access to all documents and evidence on the record administration.

However, the judicial authorities may request relevant information regarding the possible existence of an offense against the honor of the person reported.

ARTICLE 9. - Addressing the complaints filed with the Comptroller General's Office The Comptroller General of the Republic shall establish procedures for the care, the admissibility and processing of complaints submitted to it and which are relevant to the scope of its jurisdiction, but respect the right of petition, in the terms established by the Constitution .

ARTICLE 10. - Limitations on access to administrative record When investigations are underway to conduct the Comptroller General of the Republic in the exercise of its powers, to save the book of the case, protection of fundamental rights of the suspect or third parties.

A records only accessible by the parties and their lawyers duly accredited as such, or authorized by the individual to study the administrative record before assuming his sponsorship.

The hearings referred to the General Law of Public Administration in administrative procedures to instruct the Public Administration for violations of the Public Treasury System, shall be oral and public, but the governing body, in a reasoned decision, you can declare them private for reasons of decorum and privacy of the parties or third parties if it considers that it hinders the collection of evidence or danger a secret whose disclosure is punishable criminally.

ARTICLE 11. - Access to confidential information In pursuance of the powers assigned to the Comptroller General of the Republic, its officials have the power to access all sources of information, records, public documents, statements, accounting records and its attachments, invoices and contracts that maintain or possess controlled subjects.

However, in accordance with Article 24 of the Constitution, the only private documents to the Comptroller General of the Republic may be revised without prior authorization from the affected or their representatives, are the books of account and annexes, with the sole purpose of overseeing the proper use of public funds.

The victim or their representatives may, moreover, that the Comptroller General's Office review documents other than those set forth in the preceding paragraph. Such approval is deemed granted if the person concerned or their representatives are not opposed to the actions of the Comptroller, after 3

that state officials have communicated the intention to review documentation and have informed them about the possibility of refusing to make such that process.

Confidentiality is granted by a special law to the documents, accounts or sources, known by the Comptroller General of the Republic under Article 24 of the Constitution and this article will not be enforceable against its officials, however, should hold against third parties.

The original documents to which you can access the Comptroller General of the Republic under this Article and Article 24 of the Constitution, are kept by the person or entity who holds, where this is necessary to avoid interference with a service public or to not affect fundamental rights of others, for that reason, officials of the Comptroller will certify public faith respective copy and take it.

ARTICLE 12. - International cooperation Is empowered to the Comptroller General's Office for its cooperation and advice to the Executive in the celebration of international conventions applicable, so that the control agencies of the Treasury to collect evidence and conduct research outside the country , enabling joint studies or audits and facilitate technical cooperation and exchange of experiences.

In the area of competence, the Comptroller General of the Republic may request international assistance and cooperation to obtain evidence and make the necessary acts in the investigations carried out by the Central Authority referred to in Article XVIII of the Inter- against Corruption, ratified by Law No. 7670 of April 17, 1997.

ARTICLE 13. - Territoriality The provisions of this Act shall apply in respect of acts of corruption committed outside the national territory or which produce their efectosfuera it, while it is a state party to the Convention against Corruption.

The Comptroller General of the Republic shall have full powers of supervision over officials and the Costa Rican foreign service offices and taxpayers establish offices outside the country.

CHAPTER II Preventive regimen ARTICLE 14. - Prohibition to practice professions May not exercise professions, the president, vice presidents, judges of the Judiciary and the Supreme Electoral Tribunal, the ministers, the comptroller and the comptroller general of the Republic, the deputy counsel and counsel of the inhabitants, Attorney General and Assistant Attorney General of the Republic, the controller general of the Republic, Attorney General of the Republic, the deputy ministers, 4

senior officials, CEOs, managers and managing directors of the decentralized, autonomous institutions, and semi-public companies, superintendents of financial institutions, securities and pensions, their mayors and municipal mayors and deputy assistant managers and administrative, subcontralores controllers and internal auditors and internal subauditores Administration Public as well as department directors and deputy directors and holders of Public Sector proveedurĂ­a. In this article the other professions fall within the official possession, although they are not required to hold the respective office.

In the previous ban on teaching the exception of higher education outside the regular working hours and care matters to which they are part of the official concerned, your spouse, partner or companion, or any relative by consanguinity or affinity to the third degree. In such cases, shall not affected the normal and impartial charge, nor shall occur on issues that are addressed in the same public agency or branch of government in which he works.

ARTICLE 15. - Remuneration banning economic liberal professions Unless there is a special system of remuneration for public officials, financial compensation for the application of the preceding article shall be equal to sixty-five percent (65%) of the base salary set for the respective category of post.

ARTICLE 16. - Prohibition receive wage compensation Public servants may only charge fees or benefits under Public Law Regime own in their terms of service and properly budgeted. Consequently, they are forbidden to receive any other emolument, fee, stipend or salary from individuals or corporations, domestic or foreign, by reason of the performance of their duties or in connection with these, at home or abroad.

ARTICLE 17. - Simultaneous performance of public office No person may serve simultaneously in the organs and institutions of public administration, over unpaid salaries from a charge. Of this provision are safe teachers of institutions of higher education, the musicians of the National Symphony Orchestra and the bands belonging to the Public as well as those who provide services that require the National Commission for Risk Prevention and Care Emergency to deal with national emergencies and declared by the Executive, the Supreme Electoral Tribunal during the six months preceding the date of national elections and up to three months after verified, and other public institutions in similar cases, after approval of the Comptroller General of the Republic.

For public officials perform extra work do not qualify as overtime, shall require the prior approval of the Comptroller General of the Republic. The lack of approval will prevent the payment or remuneration.

Similarly, any public officer, during maternity leave without pay, may serve as an advisor or a consultant to agencies, institutions or entities, domestic or foreign, which are directly linked by hierarchical relations, by devolution or agreement approved this purpose with the body or entity for which he is in office.

Likewise, those occupying positions within the civil service may not accrue any diet as board members 5

or other bodies belonging to corporate bodies, institutions and companies in the Public Administration.

ARTICLE 18. - Incompatibilities The president, vice presidents, deputies, magistrates of the judiciary and the Supreme Electoral Tribunal, the ministers, the comptroller and the comptroller general of the Republic, the deputy counsel and counsel of the inhabitants, the attorney general and Deputy Attorney General of the Republic, the controller general of the Republic, the deputy ministers, senior officials, board members, CEOs, managers and assistant managers, directors and deputy executive directors, heads of procurement, the auditors and internal subauditores public administration and public enterprises and municipal mayors may not simultaneously hold board seats, nor may appear in the registers as representatives or agents of private companies, nor participate in its capital stock, either personally or by another legal person, when such enterprises or institutions providing services to public companies, by nature of its business, competing with it.

The prohibition to occupy managerial positions or have legal representation would also apply in relation to any private, for profit or not, you get economic resources of the State.

Appropriate officials will have a period of thirty days to prove, to the Comptroller General of the Republic, their respective resignation and proper registration of their separation, this period may be extended once by the auditing body to As for another period.

ARTICLE 19. - Withdrawal of the incompatibility Only to management by the person, the Comptroller General of the Republic, by a reasoned decision in situations described, may waive the incompatibility stated in the preceding article, if it can be estimated that, by the nature of the assets constituting the assets company in which the officer or officers, agent or representative, in purpose or the particular turn, and the lack of activity, there is no conflict of interest, without prejudice to the survey can be revoked for failure or modification the conditions under which it was granted.

ARTICLE 20. - Arrangements for donations and gifts Gifts received by a public official as a courtesy or diplomatic custom, be regarded as immovable property of the nation, when its value exceeds a base salary, as defined in Article 2 of Law No. 7337, according to the valuation reasonable that they perform the Directorate General of Taxation, if deemed necessary. Fate, registration and use of such property shall be determined by the regulations of this Act, the effect can be established that such property or the proceeds from its sale to be transferred to public charities, health or education, or the capital cultural-historical, as applicable. Application of this rule except the decorations and honorary awards, cultural, academic or scientific.

CHAPTER III Affidavit of financial position

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ARTICLE 21. - Officials must declare his assetsShall state the financial condition, to the Comptroller General of the Republic, as demonstrated by this Act and its Regulations, the Members of the Legislative Assembly, the president, vice presidents, the ministers, with or without portfolio, or officials appointed to that rank, the deputy ministers, judges and alternates of the Judiciary and the Supreme Electoral Tribunal, the comptroller and the comptroller general of the Republic, the deputy counsel and counsel of the inhabitants, the attorney general and the Assistant Attorney General of the Republic, Attorney General of the Republic, the presidents, the comptroller or subcontralores of state higher education institutions, the controller general of the Republic, the superintendent of financial institutions, securities and pension and as the respective mayors, senior officials of ministries, members of boards of directors, excluding non-voting tax, CEOs, managers, assistant managers, auditors or internal subauditores, and holders of the supply stores the entire public administration and public enterprises, as well as councilors, and alternate, and municipal mayors Also must declare his assets customs employees, employees who handled public contracts, other public officials in their care, administer, or collect fiscalicen public funds, to establish income or revenue for the state, adopt and authorize expenditures with funds public, as the list contained in the Regulations of this Law, which may also include employees of private actors who manage, kept or are licensees of funds, goods and services, who, as applicable, subject to the provisions of this Act and its Regulations.

The comptroller and the comptroller general of the Republic sent a true copy of their statements to the Legislative Assembly, which, for such officials, shall have the same powers that the law gives the Comptroller General of the Republic in relation to other servers public.

ARTICLE 22. - Presentation of the initial statements, annual and final The initial statement must be filed within thirty days after the date of appointment or election official statement by the Supreme Electoral Tribunal, in the case of elected office. For purposes of update, also must be submitted each year within the first fifteen days of May, a statement which are stated the changes and variations in relation to the financial position declared. Finally, within thirty days to immediate termination of service, public officials must file an affidavit end, which reflect changes and changes in financial position, the above according to the regulations that issued for this purpose in accordance with this Act are made statements under oath.

ARTICLE 23. - Affidavit in order singular The fact that a public servant is not required to file affidavit on its financial position, do not prevent investigations and studies to determine a possible illicit enrichment or any other breach of this Act to this end, the Comptroller General of the Republic or the Attorney General, through the Attorney General, at any time may, by order of significance, for public officials who manage public funds or preserve it, that this affidavit of his assets. In this case, from the time the officer will pay their initial statements, annual and final on the same timescales, terms and penalties provided in this Act and its regulations, but the term for filing the first statement run from the day following the date of receipt of order. The Attorney General sent to the Comptroller General's Office a true copy of the statements you receive.

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ARTICLE 24. - Confidentiality of statements The contents of the affidavits is confidential, except for the deponent, subject to access them requiring special investigative committee of the Legislative Assembly, the Comptroller General's Office, prosecutors or courts of the Republic, to investigate and determine the possible commission of offenses and offenses under the Act does not restrict the right to privacy of citizens whether the return was filed or not according to law.

ARTICLE 25. - Record of affidavits The Comptroller General of the Republic shall establish a register of affidavits that will provide stakeholders the respective forms for carrying out his statement, also have the functions of receiving and keeping custody statements of each public servant.After four years from the date on which the public servant has left the office that gave rise to the duty to declare his assets, the returns filed and accompanying documentation will be forwarded to the National Archives and kept the same conditions of confidentiality.

ARTICLE 26. - Terms of subjects required to presenter sworn statement of assets They are obliged to declare his assets, public officials named in property that occupy positions or perform the duties of the positions listed in this Act and its Regulations.Also, officials are included with fixed term temporary appointment or assignment fee or by special resolution, when the period is greater than or equal to six months.

ARTICLE 27. - Changing the job description or the administrative nomenclature Officials to declare his assets have this duty even if, under an administrative reorganization or other similar reason, to amend the name or title of the class of position held, as long as their powers and responsibilities continue to be comparable to the post that originated this requirement.

ARTICLE 28. - Duty to report on staff subject to the affidavit The director, manager or unit in charge of human resources or personnel office of each public body or entity, within eight working days after the appointment or election official declaration of the Supreme Electoral Court, shall report to the Comptroller General of the Republic, on the name, qualities and the exact address of the servers in positions requiring the declaration of the financial position, indicating the date they started their functions must also inform writing to the officer on duty to comply with that statement.

Within that same period, shall indicate the date on which, for any reason, the servers required to declare complete their service relationship, or any other circumstances affecting the fulfillment of the obligation to declare assets.

For all legal purposes, the disobedience of this obligation shall be considered a serious offense, punishable under the relevant domestic regime.

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The error or defect in the information that the human resources unit provided under this article shall not constitute in itself sufficient reason to terminate or reduce certain reporting responsibilities in this Act. This provision shall apply, as applicable, to private actors.

ARTICLE 29. - Contents of declaration In addition to the provisions of the rules of this Act, the public servant shall include in his statement, in a clear, precise and detailed, property, income, rights and obligations that constitute their heritage, both within the national territory abroad, also recorded an estimated valuation in colones.

1. Real estate shall state a) The right which is exercised on the property (ownership, possession, leasing, usufruct, bare ownership or other) and the cause of acquisition (sale, bequest, gift or otherwise), shall indicate the name of the individual or legal, who was acquired. b) Quotations for registration in the respective registry. c) The area, nature, boundaries and exact location of the property. If construction or improvements, provide its nature, the construction area, describing finishes, and seniority. d) The activity is devoted to each farm. e) The estimated value of the property, including the cost of construction, where applicable. f) In the final statements, the real property and not part of the estate of the declarant and appearing in his previous affidavit, and the new owner's name.

2. Of personal property should be provided at least the following: a) The law that holds true about the good, the cause of acquisition, free or expensive, and the previous owner's identity. b) The precise description of the property, brand, model, license plate number, when appropriate, or failing that, the serial number and an estimate of current value. c) In case of livestock, number, gender, race, and the total value. d) In respect of household goods, their total value and description. They understand, for household goods, household items only and clothes own personal use, your spouse, partner or companion, their children and other people who live with the official. Not included are works of art, collections of any kind, jewelry, antiques, weapons, or goods used for the exercise of the profession, trade or occupation of the server, all these goods should be identified separately from household items and should Give the estimated value. e) participation in companies or for-profit companies, the full name of the entity, the legal document, the office or the officer concerned in them, address, number of shares owned by the declarant, the type of these and their value, and contributions in cash and in kind made by the declarant; also the amounts received dividends in the past three years, if any, and dividends of the company for its equity interest in other organizations domestic or foreign.

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f) In bonds, the kind, number, series, and the entity that issued them, the nominal value in the currency, the number and amount of coupons to the acquisition date, the rate of interest that accrues, the acquisition date and the expiration date. g) certificates of deposit in colones or foreign currency, the certificate number, the entity that issued them, the value in colones or foreign exchange, interest rate, term, and the acquisition date and the number and amount of coupons from the date of acquisition. h) supplementary pension funds or similar and current bank accounts and savings accounts in colones or in foreign currency, the account number, the name of the bank or company, and the balance or amount saved to the date of the declaration. i) of the wages and other income, type of income (rents, expenses, dividends, interest, pensions, wages, fees, commissions or other), institution, company, cooperative, foundation or individual who paid, whether national or foreign, the amount earned by each income and the period covered by each, in addition, the total amount paid in cash, including fixed representation expenses not subject to liquidation, as well as paid in kind, with an indication of its contents. Of revenue quoted showing their annual estimate and the corresponding breakdown, according to its nature.j) intangible assets, its type, origin and its estimated value.

3. Liabilities shall be given all the financial obligations of the officer in that the latter appears as a debtor or guarantor, shall also indicate the number of operation, the original amount, the person or lending institution, the period, the share of last month, the source liabilities and the balance at the date of the declaration.

4. Other property interests: The respondent must also indicate the patrimonial interests not included in the above provisions.

ARTICLE 30. - Authorization for access to information The statement shall contain an authorization for the Comptroller General's Office to request information relevant to business and banking or financial organizations, national or foreign, which have links or economic interests or shareholding relevant for the purposes of this Act .

ARTICLE 31. - Temporal scope of the affidavit The opening statement should include the economic changes that occurred one year before the date of appointment or election officially declared by the Supreme Electoral Tribunal. In particular, during this period, the declarant shall indicate the property that no longer belong to the name of the purchaser, the title by which it was transferred and the amount of the transaction, and the obligations acquired or extinguished by payment or any other reason, which also must be identified.

ARTICLE 32. - Simulation There may be concluded that simulation, if no agreement between the property declared to the Comptroller General of the Republic and those who are actually utilizing them.

To configure the simulation will require that the usufruct is on property of others, that this does not 10

appear in the official statement that this can not show any title to them, and that the usufruct is public knowledge, partial or total, permanent or intermittent.

It is understood that there is indeed usufruct in movable and immovable assets that make up the family and those belonging to any of his relatives by blood or marriage, even to the second degree, or any legal person, provided there is indicated as shown in usufruct.

All goods which enjoy a usufruct in fact, for any reason, must be declared.

ARTICLE 33. - Receiving The applicant will receive proof of filing their returns, without prejudice to the Comptroller General's Office may require clarifications or additional information, or liability arising from late submission without justification.

ARTICLE 34. - Verification of accuracy of the statement Where appropriate, the Comptroller General of the Republic may examine and verify, in detail, accuracy and veracity of the statements, in accordance with the procedures and authority under the Constitution and laws. It may also require, in writing, the declarant clarifications or additions it deems necessary, within which is set prudently.

ARTICLE 35. - Faculty research even before imposition of liability The imposition of administrative sanctions will not prevent the Comptroller General's Office conduct investigations as it deems appropriate in accordance with this Act, in relation to the financial condition of one who has missed his affidavit or submitted in an untimely fashion, nor famish the possibility of the other responsibilities of the case arising from that investigation.

ARTICLE 36. - Access to public office To hold public office giving rise to the duty to declare the financial condition, requirement is that there is no pending affidavit be filed with the Comptroller General of the Republic. Of this provision with the exception of elected office. Violation of the provisions of this rule will lead to the relative nullity of appointment.

CHAPTER IV Administrative and civil responsibility ARTICLE 37. Public institutions are required to provide a professional to provide technical support to the chief to perform his statement.

ARTICLE 38. - Grounds for administrative responsibility Without prejudice to other grounds provided for in the rules applicable to the respective list of services, have administrative responsibility to the public official: a) Breaching the prohibitions and incompatibilities regime established in this Act b) Regardless of the rules prohibiting or exclusive dedication to the child, offer or engaged in activities that compromise their impartiality, enable a conflict of interest or favor 11

c)

d) e) f) g)

h) i)

j) k)

l) m)

n) o)

private interests to the detriment of public interest. Without this modeling is limited to include in the event the following cases: study, review, issuing verbal or written criteria, preparation of draft procedures related to demand or during them, administrative remedies, the Offers in contracting procedures, the job search or negotiation in conflict with their duties, without notice or without separating the superior knowledge of matters in which you are interested in the potential employer. encourages him, his spouse, boyfriend or girlfriend, or any of his relatives within the third degree of consanguinity or affinity, natural or legal persons who are potential bidders, contractors or users of the entity which provides services, accordance with Article 20 of that law Weaken the organization's internal control or ignore the actions necessary to design, implementation or evaluation in accordance with applicable technical standards.

Violates the provisions of Article 20 of this Law, in relation to the pattern of donations and gifts.

Inexcusable neglect, advice or counsel to the entity which provides services to another entity or public body, or to individuals who have dealings with it.

Commits gross negligence in the supervision or the election of officers under their powers of management or hierarchy, in the exercise of these powers have made management of public funds.

Fails to submit to the knowledge of the Comptroller General's Office budgets require the approval of that entity.

Unreasonably, do not submit any affidavits referred to in this Act if, after the deadline for delivery, only once is prevented by the Comptroller General of the Republic that within fifteen working days to fulfill its presentation.

Commits untruthfulness, omission or simulation in their statements of financial condition.

Slow or disobey, run counter to the requirement to clarify or expand its balance sheet or statement of economic interests, within that fixed by the Comptroller General of the Republic.

Violate the confidentiality of the sworn statements of assets.

Behold, by himself or by natural or legal person intermediary remuneration, fees or material benefits of any kind, from individuals or organizations outside the Civil Service, for the fulfillment of duties of the position or time of such within the country or outside it.

Breaching the prohibition in Article 17 of this Act to hold office simultaneously in Public Administration.

Commits default or delay, serious and unjustified, to prosecute within the time required by the Comptroller General of the Republic.

ARTICLE 39. - Administrative Sanctions Depending on the severity, the aforementioned offenses shall be punished as follows: 12

a) Written warning published in the Official Journal. b) Suspension, without pay, diet or stipend, fifteen to thirty days c) Removal from public office, without employer's liability or cancellation of the municipal councilor credential, as appropriate.

ARTICLE 40. - Powers to declare responsibilities The penalties provided in this Act shall be imposed by the body holding the disciplinary power in every public entity in accordance with applicable regulations.

The Comptroller General's Office is also responsible for handling the respective administrative procedure and require the respective institution, in a binding, the application of the penalty to determine when the case on actions being governed by the law of the Treasury.

Foregoing is without prejudice to Article 43 of this Act, in which case the Comptroller General's Office shall proceed as directed.All liability is declared by the principles and procedures in accordance with the principles established in the General Law of Public Administration and the parties will ensure constitutional guarantees of due process and prior defense, real and effective, subject necessary precautionary measures.

In any case, the Comptroller General of the Republic must report to the competent judicial authorities, the facts brought to its attention and which can be considered to constitute crimes.

ARTICLE 41. - Criteria for considering The penalties stipulated in this Law shall be imposed for offenses that have been typed previously committed with malice or gross negligence. To assess the behavior of the suspect is taken into account, inter alia, the following factors: a) The actual injury to the economic interests of the public administration and the amount of damages incurred. b) The success in achieving the results desired by law or in the enrichment or favoring the offender or others, as well as the efforts made to procure them. c) The negative impact on public service. d) Repetition of any of the misdemeanors specified in Article 38 of this Law, within the previous four years. e) The range and server functions, it is understood that the greater complexity of the hierarchy, the greater the obligation to assess the legality, timeliness and appropriateness of the instruments are issued, authorized or executed.

ARTICLE 42. - Sanctions for staff of the Comptroller General of the Republic In addition to the penalties provided in the regulations, the servants of the Comptroller General of the Republic shall be punished, disciplinary, with dismissal without employer's liability, subject to appropriate criminal sanctions, when malice or gross negligence: 13

a) Violate confidentiality or alter the contents of the affidavits of assets. b) Disseminate information of the taxpayers of the audit by the Comptroller General of the Republic, whose confidentiality is conferred by a special law and which have access in the exercise of its functions, or prevail in any such information or charge for purposes other their duties.

ARTICLE 43. - Liability of members of the supreme powers Where the offenses under this Act are assigned to deputies, councilors, mayors, judges of the Judiciary and the Supreme Court of Elections, Government ministers, the Comptroller General of the Republic, defender of the people of the Republic and the deputy counsel, the general regulatory and Attorney General of the Republic, or directors of autonomous institutions, it shall be informed, as appropriate, the Supreme Electoral Tribunal, the Supreme Court, the Board of Government, the Legislative Assembly or the President, that, according to law, is appropriate to impose the corresponding sanctions.

ARTICLE 44. - Limitation of administrative responsibility Administrative responsibility of public officials for offenses under this Act, and the order on the Treasury, prescribe, under Article 43 of the Internal Control Act and Article 71 of the Organic Law of the Comptroller General of the Republic, No. 7428, dated 7 September 1994.

CHAPTER V Crimes ARTICLE 45. - Illicit Enrichment Shall be punished with imprisonment from three to six years who unlawfully taking advantage of the exercise of public functions or custody, operation, use or administration of funds, services or public goods, under any title or mode of management, by itself or through another person or entity, plus their increased wealth, acquire assets, rights enjoyment, cancel or extinguish debt obligations affecting your estate or legal entities in which equity ownership interest either directly or through other legal persons.

ARTICLE 46. - Falsehood in the affidavit Shall be punished with imprisonment from six months to a year, who incurs falsehood, pretense or concealment to make affidavits of assets to the Comptroller General of the Republic.

ARTICLE 47. - Receiving, or concealment of property legalization Shall be punished with imprisonment from one to eight years, who hide, secure, convert, invest, transfer, custody, manage, acquire or give the appearance of legitimacy to property or rights, knowing that they have been the product of illicit enrichment or criminal activity of a public servant, committed in the course of the charge or by the media and the opportunities it offers.

ARTICLE 48. - Legislation or self-serving administration Shall be punished with imprisonment of one to eight years, the public official sanction, enact, authorize, subscribe or participate with their vote, laws, decrees, administrative acts and contracts that give, directly, benefits for themselves himself, his spouse, partner or partner, relatives even to the third 14

degree of consanguinity or affinity or companies in which the public official, spouse, partner or partner, relatives even to the third degree of consanguinity or affinity hold equity, either directly or through other legal entities in which social capital engaged in or guardian or member of any corporate body.

The same penalty shall apply to anyone who favors a spouse, partner, companion or partner or his relatives, even to the third degree of consanguinity or affinity, or favor to himself, with economic benefits contained in collective agreements, in which negotiations have participated as a representative of the employer.

ARTICLE 49. - Surcharge irregular Shall be punished with imprisonment of three to ten years, who, by paying higher prices or lower-case, according to the actual or current value and according to the quality or the service or product specialty, obtain an advantage or benefit of any kind for himself or a third party in the acquisition, sale, grant, or the taxation of goods, works or services that are interested the State, other authorities and public enterprises, municipalities and private actors who manage , explode or custody, public funds or property by any title or type of management.

ARTICLE 50. - Forgery of receipt of goods and services contracted Shall be punished with imprisonment from two to eight years, the public official, the consultant or any of the servers that employed by the respective public entity, that are guilty of misrepresentation or manipulation of information about the implementation or construction of a work public, or the existence, quantity, quality or nature of the contracted goods and services delivered or works concession, in order to give satisfaction for the service received or the work. If such behavior is hampered with the service provided or is it impossible for the public agency usage of the work or due consideration needs to be hired to service, low and high ends of the penalty shall be increased by third.

ARTICLE 51. - Irregular payment administrative contracts Shall be punished by imprisonment of one to three years, the official who authorizes, orders, consents, approves or allows payments, knowing that it works, services or supplies performed or unacceptable because it was defectively executed or delivered, in Under the terms of the contract, or in consideration of unambiguous rules of science or technique.

ARTICLE 52. - Trading in influence Shall be punished with imprisonment from two to five years, who directly or through an intermediary, to influence a public servant, taking advantage of their position or of any other situation arising from their personal situation or hierarchical with this or another public servant, and real or simulated, to do, delay or skip an appointment, award, grant, contract, act or resolution of their own functions, so that it generates, directly or indirectly, a financial or undue advantage for himself or for another .

The same penalty shall be punished anyone who uses or offers to influence described in the preceding paragraph.

The ends of the penalty prescribed in the first paragraph is increased by one third, when the influence comes from the president or vice president, members of the supreme powers, or the Supreme Electoral Tribunal, the Comptroller or the Comptroller General of the Republic Attorney General or Deputy Attorney General of the Republic, the Attorney General of the Republic, the defender or the defender attachment of the inhabitants, the superior of those seeking assistance or members of political parties holding office management at national level.

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ARTICLE 53. - Prohibitions post office service Shall be punished with one hundred to one hundred fifty days of fines, the public official within one year following the conclusion of an administrative contract at or above the limit established for public tenders in the state where he served, accept paid employment or participation in social capital to favored natural or legal person, if he participated in some phases of the design and preparation of technical specifications or construction plans in the selection and award process, the study and resolution of administrative appeals against the award, or in the process of inspection and supervision of the construction phase or receipt of goods or services concerned.

ARTICLE 54. - Seizure of assets given away to the State Shall be punished by imprisonment of one to two years the public official who appropriates or retains gifts or donations to be delivered to the State, in accordance with Article 20 of this Act ARTICLE 55. - Transnational Bribery Shall be punished with imprisonment from two years to eight years, who offer or grant to a public official of another State or international body or entity directly or indirectly, any gift, remuneration or other improper advantage in return for which he or In the exercise of their duties, perform any act or omission or to assert undue influence other officer arising from his office. The penalty is three to ten years, if the bribe is made for the officer to perform an act contrary to their duties.

The same penalty shall apply to anyone who receives the gift, payment or benefit mentioned.

ARTICLE 56. - Recognition illegal employment benefits Shall be punished with imprisonment from three months to two years, the public official who, on behalf of the public administration and on its behalf, grant or recognize economic benefits derived from the service relationship, in violation of applicable law.

ARTICLE 57. - Influence against the Treasury Shall be punished with imprisonment from two to eight years, the public official and the other matched subjects who, in intervening in virtue of his position, influence, direct or conditional in any way, to produce a particular result, harmful to the interests property of the Treasury or the public interest, or use any maneuver or contrivance tending to that end.

ARTICLE 58. - Fraud Act in the administrative function Shall be punished by imprisonment of one to five years, the public official acting in an administrative fraud, in accordance with the definition in Article 5 of this Act shall apply to the same penalty particular, knowing the dissatisfaction of result with the law, would be facilitated, or providing their help in this crime.

ARTICLE 59. - Disqualification Whoever commits the offenses under this Act, in addition to the main penalty you may be disabled for the performance of employment, position or exercising public commissions, including the popularly elected for a term of one to ten years. The same penalty shall be imposed on those who are taken as coauthors or accomplices of this crime.

ARTICLE 60. - Violation of the privacy of the information in the affidavits Shall be punished with imprisonment of three to five years, who disclose the affidavits of assets filed 16

with the Comptroller General of the Republic.

ARTICLE 61. - Civil consequences of illicit enrichment The final court sentence for the crime of illicit enrichment will result in the loss to the State or public entity respectively, of movable or immovable, valuables, money or rights obtained by the author, coauthor or accomplice, as a result direct the offense, unless rights of third parties in good faith, as determined by the relevant judicial authority.

In the case of goods subject to registration in the National Register, will suffice to warrant the appropriate section of your registry to transfer the property to the municipalities of the counties where they are located, in the case of buildings, so that can be used in works of benefit to the county or public benefit. Other goods will have the fate to be determined in the regulations of this Law The order of registration or transfer will be exempt from stamp and registration fees.

ARTICLE 62. - Limitation of criminal liability The prosecution of an offense against the duties of the civil service and those provided in this Act, prescribe the manner prescribed by applicable law, however, the following rules shall apply: a) Once stopped prescribing the time limits set in Article 31 of the Code of Criminal Procedure shall begin again for a further period without any reduction. b) In addition to the grounds provided in Article 33 of the Code of Criminal Procedure, criminal proceedings may be interrupted by the declaration of illegality of the administrative function, action or omission, or the annulment of administrative acts and contracts that relate to the relevant offense, whether the statement is produced in judicial or administrative.

CHAPTER VI Final provisions ARTICLE 63. - Reform of the Organic Law of the Comptroller General of the Republic Are reformed Article 73 of the Organic Law of the Comptroller General of the Republic, whose text will read: "Article 73. - Cancellation of credential Will be cause for cancellation of the respective credential, the commission of serious misconduct by a councilor or trustee, owner, or substitute, against the rules of the system of supervision and control of the Treasury referred to in this Act, against any other rules on public funds or incur any of the acts specified in the Law against corruption and illicit enrichment in public office, as generators of administrative responsibility. This applies when the offender was acting in the performance of his duties or because of it.

When misconduct is committed under an agreement of the council, the aldermen, with their votes in favor, have approved the agreement, incur the same grounds for cancellation of their credentials. Also be grounds for cancellation of the credential of alderman or trustee, owner or alternate, the criminal sentence for crimes against property, against good faith in business and against the obligations of the public, as well as those provided in the Law against corruption and illicit enrichment in public office. The competent judicial authority shall, ex officio, the respective communication to the Supreme Court of Elections. " 17

ARTICLE 64. - Reforms of the Criminal Code Are hereby amended Articles 345, 354 and 356 of the Penal Code, whose texts will: "Article 345. - Penalty corrupting The penalties established in the five preceding articles shall apply to the giving or promising a gift a public servant or the undue advantage. " "Article 354. - Embezzlement Shall be punished with imprisonment from three to twelve years, the public official who steals money or property or distract the administration, collection or custody has been entrusted by virtue of his office, also with imprisonment from three months to two years, the public official employing the benefit of oneself or others, works or services paid by the Public Administration or property belonging to it.

This provision also applies to individuals and managers, administrators or representatives of private organizations, beneficiaries, grantees, grantees or assigns, as to goods, services and public funds to explode, kept, managed or held by any title or management mode. " "Article 356. - Embezzlement Shall be punished with imprisonment of one to eight years, public officials, individuals and managers, administrators or representatives of private legal persons, beneficiaries, grantees, grantees or assigns that provide the flow, goods, services or funds it manages, kept or exploit for any degree or form of management, an application different from that to which they are intended. If it is damage or interference of service, the penalty shall be increased by one third. " ARTICLE 65. - Amendments to the Law of Administrative Contracting Are hereby amended Articles 22, 23, 24 and 25 of the Law of administrative, No. 7494 of May 2, 1995, in addition, you should add items 22a and 97a. The texts say: "Article 22. - Scope The prohibition on government contracts extends to participation in procurement procedures and the implementation phase of the contract concerned.

Supervening prohibition will exist when the respective causal started to occur after the recruitment process and before the award process. In this case, the supply affected by the ban may not be awarded, will be released to the seller of any compromise with the Administration and will be returned to the respective guarantee of participation.

When the ban ensues on a favored contractor firm with an award, the entity shall watch with special care because they run under the agreed conditions, but may not exist in his favor treatment than those given to other contractors in similar conditions.

The official subject to the relevant prohibition shall not participate, comment or influence in any way, in the execution of the contract.

Breach of this obligation shall be deemed as serious misconduct in the service.

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There will be direct involvement of the officer when required by the nature of its powers, has the legal power to decide, discuss, opine, advise or otherwise participate in the selection process and award of tenders, or stage of subsequent inspection in the execution of the contract.

Indirect participation exist when through another person, or entity is intended to circumvent the scope of this prohibition. To demonstrate both forms of participation is allowed every kind of test.

Article 22 bis. - Scope of the prohibition In contracting procedures that promote the institutions subject to this Act, shall be prohibited to participate as suppliers, directly or indirectly, the following persons: a) The president and vice president of the Republic, ministers and deputy ministers, deputies to the Legislative Assembly, the magistrates of the Supreme Court and the Supreme Electoral Tribunal, the comptroller and the comptroller general of the Republic , Attorney General and Assistant Attorney General of the Republic, the deputy counsel and counsel of the inhabitants, the treasurer and assistant treasurer national and the national supplier and subcontractor.

In cases of elective office, the ban will take effect from the Supreme Electoral Tribunal officially declared election result. b) The entity in which they serve, board members, CEOs, managers and assistant managers, both of the devolved institutions and public enterprises, the aldermen and the mayor owners.

c) Officials of the supply stores and legal advice in respect of the entity in which they serve.

d) Public officials with influence or power to decide, at any stage of the procurement management, including its audit later in the stage of implementation or construction.

It is understood that there is interference or power of decision when the official concerned, for the class of functions performed or the rank or hierarchy since it serves, can participate in making decisions or influence them in any way. This course covers to whom they report opinions or technical reports, prepare or handle any of the phases of the procurement process, or supervise the implementation phase.

Where there is doubt whether the position held is affected by interference or power of decision, before participating in the government contracting process, the applicant will make the query to the Comptroller General of the Republic and shall forward all the evidence and case information , as provided in the Regulations of this Act. e) Advisors to any of the officials concerned with prohibition, whether internal or external, personally or without any remuneration in respect of the entity for which that official serves. f) Legal entities whose capital stock in any of the officials mentioned in the preceding paragraphs, or those exercising managerial or representation.

For the sale or transfer of the respective social participation can disaffect to the respective firm, 19

must have been made at least six months prior to the appointment of the official concerned and shall be dated somewhat by any means that allows civil procedural law . Any sale or transfer after that date desafectarรก not a legal person of the prohibition to contract, the duration of the appointment to its source. g) Legal non-profit, such as associations, foundations and cooperatives, in which persons are prohibited are listed as directors, founders, officers, advisers or any other positions with decision-making. h) The spouse, partner or the partner in the union, the officials covered by the ban, and their relatives by consanguinity or affinity to the third degree. i)

Legal entities in which the spouse, partner, companion or relative as stated in the preceding paragraph, hold more than twenty five percent (25%) of the capital or exercise any management position or representation.

j)

The natural or legal persons who are involved as advisors in any stage of the recruitment process, have participated in the preparation of specifications, designs and drawings thereto or be involved in its audit later in the implementation phase or construction.

This prohibition shall not apply in cases that are tendered jointly design and construction of the work on alternative variants, specifications or drawings provided by the Administration.

Individuals and organizations subject to a prohibition, the impediment to keep completed six months after the cessation of the reason that gave it birth.

Of the above prohibitions except the following cases: 1. Whether it is a single supplier.

2. Question from ordinary activities of the entity.

3. That there is an expressed interest to collaborate with the Administration.

Article 23. - Withdrawal of the incompatibility The prohibition in subsections h) and i) of the preceding article may be lifted in the following cases: a) Where it is established that the business has been exercised deployed at least one year prior to the appointment of the officer who originated the ban. b) In the case of officers or representatives of a legal person where they demonstrate that the respective rank as at least one year prior to the appointment of the officer who originated the ban. c) After the expiry of at least six months since the social participation of the affected relative was assigned or transferred or resigned from that position or office of representation.

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By the procedure to be specified by regulation, the Comptroller General's Office agreed to raise the inconsistency.

Article 24. - Prohibition of influences Persons covered by the scheme of prohibitions are forbidden to intervene, directly or indirectly, to officials responsible for the stages of the selection of the contractor, execution or enforcement of the contract, for himself or others.

Article 25. - Effects of Failure The violation of the system of prohibitions set forth in this chapter will result in the absolute nullity of the act or contract award issued in the favor of inhibited and may result in the offending party to the penalties provided in this Act " "Article 97 bis. - Exclusion of the bidder If the offenses referred to in Articles 96 and 97 ter, occur when in a procurement process, the offeror that its participation in those violations contributed directly or indirectly, be excluded from the competition or, where appropriate, respective award is void, regardless of whether there was favoritism. " ARTICLE 66. - Municipal Code Reform Are reformed subsection d) of Article 18 of the Municipal Code, whose text will read: "Article 18. [...] d) Engaging in any of the grounds provided for in Article 73 of the Organic Law of the Comptroller General of the Republic. [...] " ARTICLE 67. - Addition to the Central Bank Law Hereby added to Article 132 of the Organic Law of Banco Central de Costa Rica, No. 7558, of November 3, 1995, subsection e), whose text will read: "Article 132. [...] e) The information required by the Comptroller General of the Republic in the exercise of its powers. "[...]"

ARTICLE 68. - Amendments to the Law No. 3667 Are hereby amended Articles 10 and 35 of the Law Governing Contentious Administrative Jurisdiction, No. 3667, of March 12, 1966, as amended.

The texts say: "Article 10. 1. They may demand the declaration of illegality and, where appropriate, the annulment of the acts and provisions of the Public Administration: a) Persons who have direct and legitimate interest in it.

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b) Institutions, corporations and institutions under public law, and few institutions bearing the representation and defense of general interests or corporate, when the trial is intended to challenge directly the general provisions of the central or decentralized , that directly affect them, except as provided in the following paragraph c) The Comptroller General of the Republic, in the case of acts that cause serious harm to the Treasury and the Administration do not proceed as provided in subsection 4) of this article.

2. However, the general provisions which must be met directly by the run, without a prior act of solicitation or subject individual may be challenged by the persons mentioned in paragraph a) above.

3. If the aim is also to recognize a particular legal situation and its restoration, with or without compensatory damages, can only promote the action the holder of a legal right derived from the order to be considered infringed by the challenged act or provision.

4. The Administration may act against their own act, firm and creator of a subjective right, when the governing body of the administrative hierarchy dictated, declared at a reasoned decision, which is injurious to public interests it represents. Also, in the case of acts or contracts related to the Treasury and, despite having an opinion from the Comptroller General's Office to recommend the declaration of nullity of these to be harmful to public finances, the competent authority fails to make such declaration within one month, the auditing body shall be entitled to operate against the measure.

5. No judgment may file administrative litigation in relation to the acts and the provisions of a public entity: a) The bodies of the entity in question. b) Individuals, when acting by delegation or as single agents or representatives of that entity. " "Article 35. 1. When the Administration, author of a document recording rights, intends to sue to annul, to the administrative court, you must first declare it injurious to public interests, economic or otherwise, within four years from the date on which it was issued.

2. Acts issued by a government department may not be declared harmful by a minister from a different branch, but by the Governing Council, after consultation with the Attorney General's Office or the Comptroller General's Office, as appropriate.

ARTICLE 69. - Repeal of subsection 4) of section 346 of the Penal Code Repealed paragraph 4) of section 346 of the Penal Code.

ARTICLE 70. - Repeal of Act No. 6872 Repealed Act illicit enrichment of public officials, No. 6872 of June 17, 1983.

ARTICLE 71. - Regulation The Executive Branch shall regulate this Law within six months after their effective date. For the enactment and amendment of Rules shall procure the opinion of the Comptroller General of the Republic, the draft will be sent promptly, so that comment. The lack of regulation does not preclude the application of this Act or its compulsory enforcement, when their provisions are insufficient in themselves to it.

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TRANSIENT I. - Officials in accordance with this Act and the Regulations, are obliged to declare his assets, should not resubmit an opening statement, when they have done under the force of the law on illicit enrichment public servants, therefore, keep all statements and value effect. However, annual returns and the final remaining to be delivered will be subject to this Act and its Regulations.

TRANSIENT II. - People who, under the force of the Law on the illicit enrichment of public servants were not required to declare their assets, but must do so under this Act and its regulations, will have a period of working forty-five days from publication of the respective regulation to meet that obligation. In force as of its publication.

DONE IN THE CHAMBER OF THE STANDING COMMITTEE SPECIAL EDITORIAL. - San Jose, on the twenty day of May two thousand and four.

Carmen Gamboa Herrera Nury Garita S谩nchez Daisy Quesada Calder贸n Federico Malavassi Calvo Miguel Huezo Arias Diputados

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