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### Viewing cable 06SANJOSE2379, COSTA RICAN IMMIGRATION DIRECTOR PLANS MAJOR

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06SANJOSE2379 | 2006-10-27 10:32 | 2011-03-08 16:00 | CONFIDENTIAL | Embassy San Jose

Appears in these articles:
http://www.nacion.com/2011-03-06/Investigacion/NotasDestacadas/Investigacion2702320.aspx
http://www.nacion.com/2011-03-06/Investigacion/NotaPrincipal/Investigacion2702324.aspx
http://www.nacion.com/2011-03-06/Investigacion/NotasSecundarias/Investigacion2702325.aspx
http://www.nacion.com/2011-03-06/Investigacion/NotasSecundarias/Investigacion2702326.aspx
http://www.nacion.com/2011-03-06/Investigacion/NotasSecundarias/Investigacion2702327.aspx

`

    VZCZCXYZ0050
    PP RUEHWEB

    DE RUEHSJ #2379/01 3001032
    ZNY CCCCC ZZH
    P 271032Z OCT 06
    FM AMEMBASSY SAN JOSE
    TO RUEHC/SECSTATE WASHDC PRIORITY 6447
    INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
    RUEHBO/AMEMBASSY BOGOTA 3705
    RHEFHLC/HOMELAND SECURITY CENTER WASHINGTON DC

` `

    C O N F I D E N T I A L SAN JOSE 002379

    SIPDIS

    SIPDIS

    DEPARTMENT FOR WHA/CEN, INL/LP

    E.O. 12958: DECL: 10/04/2016
    TAGS: PGOV PINR PREF KFRD CASC CS
    SUBJECT: COSTA RICAN IMMIGRATION DIRECTOR PLANS MAJOR

    REFORMS

    REF: A. SAN JOSE 1529
         ¶B. SAN JOSE 2054

    Classified By: Ambassador Mark Langdale for reason 1.4 (d)

    ¶1. (C) SUMMARY: Costa Rican Immigration Director Mario Zamora
    recently told us that months of intense work with 2nd Vice
    President Kevin Casas (a personal friend who also functions
    as Minister of Planning) were about to bear fruit in the form
    of fundamental reforms to the information systems and
    personnel of his institution.  Zamora said that the reforms
    had to be thorough and simultaneous in order to counter the
    massive corruption he has encountered since taking the helm
    on May 8, 2006.  Zamora has recruited a tough-minded
    technocrat who played a key role in efforts to use technology
    to wring corruption out of customs clearance procedures.  He
    also has help from Microsoft Corporation to revamp
    information systems at Immigration.  Working with lawyers
    from the Ministry of Planning, Zamora has managed to
    streamline procedures for a "restructuring" of human
    resources that could replace up to 65 percent of his
    personnel.  By restructuring (and paying severance) rather
    than firing corrupt employees, Zamora says he was able to
    strike a deal with unions that avoids years of lawsuits and
    allows removing enough corrupt employees with sufficient
    speed to actually make a difference. END SUMMARY.

    ------------------------
    A New Information System
    ------------------------
    ¶2. (C) Zamora said that his initial impressions of
    vulnerabilities in the computer systems at Immigration were
    confirmed via a diagnostic performed at his request by
    Microsoft Corporation.  The diagnostic revealed that a number
    of key functions, passport issuance for example, were
    converted into independent "islands" presumably in the name
    of transparency, under the current system.  Vital
    cross-checks and internal controls are missing, however,
    which makes each "island" a lucrative profit center for those
    who control it.  Worse, some key information can be
    manipulated or deleted without creating any record of the
    changes or of who made them.  Zamora believes the current
    system is so full of holes that it cannot be salvaged.  On
    October 10, media reported similar problems with residency
    cards issued by a $2.6 million system acquired for
    Immigration less than a year ago.  Microsoft is encouraging
    Costa Rica to examine an immigration system the company
    installed in the Bahamas.  Meanwhile, the current system with
    its "islands" of corruption remains vulnerable.

    ¶3.  (C) Zamora has recruited Alicia Avendano to head the
    effort to completely revamp the computer systems at
    Immigration.  Avendano is known for her role in implementing
    a computerized customs clearance system at the Ministry of
    Hacienda.  Over spirited resistance from numerous sectors
    comfortable with the leaky old paper-based system for customs
    declarations, Avendano brought an automated electronic system
    to life that has greatly increased transparency and revenues
    at Hacienda (called Project TIC@).  Avendano's experience and
    track record at the Ministry of Hacienda should serve her
    well in facing similar challenges at Immigration.

    ¶4.  (C) Zamora estimates that he will need between $10-15
    million to acquire an information system that will meet Costa
    Rica's needs.  The money, he believes, will come from the
    Central American Bank for Economic Integration (BCIE in
    Spanish).  Zamora told us that an arrangement is being worked
    out whereby the BCIE will buy the computer equipment and
    Costa Rican Immigration will rent the equipment from the
    bank.  Zamora said the arrangement was very much in Costa
    Rica's favor and was vital to the overall success of the
    reforms since it makes little sense to remove corrupt
    personnel while the information system remains so vulnerable.

    ------------------------
    And New People To Use It
    ------------------------
    ¶5. (C) Corrupt practices are so widespread within Immigration
    that Zamora has concluded it will be cheaper and faster to
    restructure the entire personnel system (and pay severance to
    those "downsized") than to attempt to fire corrupt employees.
     Zamora's calculation is based on Costa Rica's labor law and
    back-logged labor courts.  Interestingly, Zamora met several
    times with Albino Vargas, virulent anti-free trader and head
    of the large public sector labor union ANEP, to broker an
    agreement that will avoid lengthy lawsuits.  Zamora expressed
    surprise at how anxious Vargas seemed to avoid confrontation.
     According to Zamora, Vargas said that he could ill afford a

    battle at the moment on behalf of public employees that
    "everyone knows are corrupt."  Zamora said the meeting he had
    expected to be long and heated ended quickly and pleasantly
    after he (Zamora) acknowledged that it would be cheaper to
    pay severance than to fire corrupt employees.  Severance pay
    was apparently the only deliverable Vargas needed.

    ¶6. (C) Zamora said he is now working to develop new personnel
    requirements that will eliminate the most corrupt employees.
    Zamora hopes to replace up to 65 percent of his workforce in
    the coming months and invited the Embassy to identify any
    employees we have concerns about.  (Note: we had provided a
    list to the previous Director, Marco Badilla, which
    apparently was not passed on.  RSO has developed indications
    of corrupt activities by dozens of immigration officials that
    will be provided to Zamora.  End Note.)

    -------
    Comment
    -------
    ¶7. (C) Zamora has shown himself to be an energetic
    interlocutor with an impressive combination of youthful
    ambition, private sector know-how, and previous government
    experience.  His willingness to admit the scope of the
    problem is as refreshing as his plan to address it is
    audacious.  Zamora has come up with creative solutions to a
    seemingly intractable institutional problem, and he has
    apparently succeeded in clearing one of the biggest hurdles
    by avoiding direct confrontation with the powerful public
    sector union.  Politically, Zamora has the full support of
    the Minister of Public Security and Vice President Casas.
    Albino Vargas's private eagerness to avoid being seen as
    defending corrupt government employees is a noteworthy
    contrast to his public stance against the US-Central
    America-Dominican Republic Free Trade Agreement (CAFTA-DR)
    which will open state-owned monopolies to private
    competition.  For their part, the unions' leadership was
    embarrassed over the summer by revelations of perks for union
    members in the insurance monopoly.
    LANGDALE

`