Costa Rica’s ruling political party, the Citizen Action Party (PAC) is attempting to negotiate a payment plan with the Costa Rican public health and social security administration, known as CCSS or ‘La Caja,’ in order to pay some ¢465 million (~US $870,000) in past due mandatory employer contributions that it failed to pay for some 490 staffers during a four-year period between 2006 and 2010.

The CCSS also claims that the party underreported wages for another 25 staffers during the same period.

PAC was notified of the debt in September after the conclusion of an investigation of a complaint by libertarian lawmaker, Carlos Gongora (ML) that was filed in 2012.

Last month, the CCSS warned the PAC that it was preparing to shutdown the party’s headquarters after the party failed to pay the debt by a deadline that had been established on February 15^th.

In addition to shutting down party headquarters – as the CCSS does with any other delinquent business – the CCSS also requested last month that any State contributions to the party be transferred to the CCSS until the debt has been paid in full.

Now, PAC officials are close to a deal to pay the debt in a series of payments over the course of three years, the daily La Nacion reported on Monday.

Under the agreement, PAC must make an initial payment of ¢153 million, equal to one third of the party’s debt. The remaining debt would be paid in monthly installments over the course of 36 months.

Despite the agreement, the party is maintaining a case before an administrative arbitrations court in which the party claims it should not be held liable for the debt, PAC treasurer Anthony Cascante told La Nacion.

 

Costa Rica’s central government owes CCSS far, far more

While it may come as a surprise that the country’s ruling political party is in arrears with the CCSS, the party’s debt to the social security system pales in comparison to that of the central government.

The central government is some ¢750 billion, or about US $1.4 billion, in arrears with the CCSS as the result of unpaid employer contributions for its tens of thousands of employees.