The Court of Appeals reconfirmed on Friday the three month preventive detention for businessman Juan Carlos Bolaños and the six BCR executives, established on November 4  and in relation with the “Cementazo” corruption scandal.

The attorneys of each of the seven defendants had presented their appeals and allegations and tried to convince Judge Hugo Porter to set their clients free or change their precautionary measure to house arrest, during a court hearing that extended for over 19 hours between Tuesday and Wednesday this week.

However, the evidence found during the search carried out in the homes and offices of the accused parties (including a document found in one of Bolaños’ properties that listed countries with which Costa Rica doesn’t have extradition agreements), the power that came along with their positions and their financial position, were enough reasons for the court to reconfirm the measure of preventive prison. “The preventive prison is the only measure that can be given to palliate the dangers (of fleeing and obstruction) in the procedural action”, the sentence also cited “the magnitude of the damages caused to the country’s government institutions and systems”.

Bolaños is being charged with embezzlement, influence peddling, criminal simulation and false accusation, while Mario Barrenechea, former General Manager of Banco de Costa Rica; and the other five members of Banco de Costa Rica linked to the Credit Committee, Marvin Corrales Barboza, Andrés Víquez Lizano, Leonardo Acuña Alvarado, Gilberth Barrantes Campos and a Rodrigo Ramírez Rodríguez are all being charged with embezzlement.

Juan Carlos Bolaños and five of the BCR executives are at the San Sebastián Prison while Mario Berrenechea who is 68-years-old is in the Comprehensive Care Center (CAI) for Senior Citizens in La Reforma.

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. Through the extensive investigation that has been carried out, it has been demonstrated that Bolaños had friends in very high places.

Mario Barrenechea, the former General Manager of BCR and the five other members of Banco de Costa Rica, are being investigated for apparently facilitating the credit and giving benefits to Bolaños and his companies while ignoring requirements and regulations.