If you still don’t have the basics of the “Cementazo” corruption case in Costa Rica, we invite you to read our previous article “Understanding the Cementazo” to get you up to date on this scandal that has occupied the covers of all Costa Rican newspapers and sites since late June this year.

For the past few weeks the commission investigating the case has continued with the interviews with all parties involved and witnesses; today though, the country woke to the news that businessman Juan Carlos Bolaños, who plays the main role in this drama, was detained and his properties raided as part of the investigation; Bolaños was not the only one, former General Manager of Banco de Costa Rica (BCR), Mario Barrenechea was also detained.

The raids took place starting at 5 a.m. this Friday, November 3; Bolaños was detained while he was driving in the area of Santa Eulalia in Atenas, while at the same time the police showed up at his family home in Escazú, his property in Atenas and his office in La Uruca; Barrenechea was at his home in Santa Ana.

Juan Carlos Bolaños, president of JCB group and Sinocem ( a company created to import cement from China) is being investigated due to a loan that was given to Sinocem for an amount close to US$30,000,000.00 to import cement from China. The problems are the conditions under which this loan was given, for instance, the loan had as guarantee the cement itself, which is a product that has a short life cycle, this same cement was also offered as the guarantee in another loan Bolaños requested with Banco Popular. On top of that, out of the $30 million that BCR transferred to the cement provider in Hong Kong, reportedly only $10 million in cement entered the country and $7.5 million was returned to accounts of Sinocem in Costa Rica at Cathay Bank and Banco Nacional.

Mario Barrenechea, the former General Manager of BCR, is being investigated for apparently facilitating the credit and give benefits to Bolaños and his companies while ignoring requirements and regulations.

According to the press conference held at 10 a.m. this morning by the Attorney General Emilia Navas and Walter Espinoza, director of the Judicial Investigation Organism (OIJ), the objective of the raids is to find documentation and evidence regarding the investigation being carried out. When questioned about the efficiency of this raid at this point in the investigation, Navas responded: “The group currently investigating this case is acting with objectivity and fast, I cannot respond regarding the previous actions that took place”. We must remember that Navas was named in the place previously held by Attorney General Jorge Chavarría who was suspended October 13 for a three month period, pending the investigation to prove whether or not he made irregular decisions regarding this case.

Navas confirmed the charges against Bolaños are: embezzlement, influence peddling, criminal simulation and false accusation, while Barrenechea is being investigated for embezzlement.
The General Attorney also confirmed there will be a total of eight arrests and more raids in the next hours or days.

Information on why they proceeded with the detentions today, considering this case has been going on for several months was not provided by Navas and Espinoza, who explained they couldn’t provide additional information that could eventually affect the case.