Since 2015, several directors of the Bank of Costa Rica (BCR) have questioned the company Sinocem Costa Rica, SA as well as the loans approved by the Bank’s Credit Committee in favor of the company of Juan Carlos Bolaños Rojas.
Despite the concerns of the majority of Board members, Mario Barrenechea, now suspended manager, insisted, with the support of the bank’s Credit Committee (Andrés Víquez, Marvin Corrales, Rodrigo Ramírez and Leonardo Acuña, manager ai) that everything was fine, that there were no alarming reports and that press releases were due to a trade war.
In at least fifteen minutes dating from 2015 until July this year four directors asked for accounts, expressed concern and requested actions regarding Sinocem’s credit. But the arguments by Gustavo Arias, Evita Arguedas, Francisco Molina and Monica Segnini (Alberto Raven refused to comment on his relationship with Holcim) did not receive an effective response, since both Barrenechea and the members of the Credit Committee ignored the doubts and insisted on assuring that the cement importer had already bought 127,000 tons of the product, that everything was being monitored by an inspection company and that the Bank had secured the guarantee.
Arias, Segnini, Molina, Arguedas and Raven himself requested a series of reports that -although delayed in being delivered to them- allowed them to reach conclusions that were later reaffirmed by the General Superintendency of Financial Entities, which led them to request the temporary separation of Barrenechea’s position as manager as well as an investigation on the case.
These are some of the findings denounced by them, which were not endorsed by Mora or Solís and ignored by Barrenechea for almost two years:
1-The BCR gave $20 million to the company Sinobuilding Materials Hong Kong Limited without knowing if that company was the manufacturer of the cement or determining the relation between that company and Sinocem Costa Rica, SA. In addition, 3 billion colones were given for the payment of taxes and nationalization of a cement that has not arrived in the country.
2-Sinocem Costa Rica spent up to seven months without importing cement into the country, but already had the money in its hands.
3-The investment plan was not complied with.
4-Sinobuilding Materials Hong Kong Limited apparently has as its main customer -and perhaps the only one- the company Sinocem of Costa Rica.
5-Sinobuilding returned $7,576,963 to accounts of Sinocem Costa Rica, SA, as well as to Inversiones y Inmobiliaria of the JCB, SA Group, sums that were not immediately returned to the BCR by the corresponding channels, but via accounts of Cathay banks and National Bank. Sugef said in its report that the amount returned to the cement importer was around $ 13 million.
6- It is concluded, at least with a reasonable degree of doubt, that the General Manager allowed, consented or ordered the delivery of the entire $20,000,000 to Sinobuilding Materials Hong Kong, Limited, instead of having made partial deliveries upon the delivery of the cement as established in the contract.
Although the executives have planted formal complaints and insisted on investigating the matter, the Government of Luis Guillermo Solis has insisted on removing them from their position.