Thursday 29 September 2022

ICE Continues To Cover RACSA Losses

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29 September 2022 - At The Banks - BCCR

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ICE is obligated to continue to cover the losses and financial mismanagent of RACSA, a subsidiary created in law and can only by dissolved by an act of the Legislative Assembly. Photo  Juliana Barquero, La Nacion
ICE is obligated to continue to cover the losses and financial mismanagent of RACSA, a subsidiary created in law and can only by dissolved by an act of the Legislative Assembly. Photo Juliana Barquero, La Nacion

QCOSTARICA – At the expense of consumers  by way of prices for energy and telecommunications, the Instituto Costarricense de Electricidad (ICE) covered Radiográfica Costarricense (Racsa) losses with loans and an injection of capital.

The ICE subsidiary, whose inefficiency has been proven, continues the country’s bad practice of maintaining at all costs the now excessive volume of the state agencies in the Costa Rican economy.

According to a report in La Nacion, information declared confidential last year, shows that the ICE loaned RACSA ¢16.8 billion colones between 2008 and 2015.

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ICE also made two capital injections for a total amount of ¢ 15.5 billion colones, according to information provided by RACSA to the Comptroller General of the Republic (CGR).

Francisco Calvo, RACSA general manager, argued confidentiality of information so as not to explain in detail the use of the ICE funds.

In the last six years, RACSA, which started as a telecommunications company, becoming what was once the primary provider of internet service in the country, accumulated losses of ¢565 billion colones (US$106 million dollars) in the last six years, according to confidential profit and loss statements, which La Nacion has a copy of.

RACSA was created by law and can only be dissolved by an act of legislators, forcing ICE to maintain the subsidiary operational, despite accumulating losses.

Legislators in the commission of Revenue and Public Expenditure (Comisión de Control de Ingresos y Gasto Público) confirmed that they will ask government support to boost the lifting of financial secrecy of the telecommunications business in ICE and RACSA.

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