Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Tuesday, June 30, 2020

Dispute over the use of Fonatel's resources continues

The health and economic crisis triggered by Covid-19 originated a political and institutional dispute over the case of the National Telecommunications Fund. Among other effects, it led to the resignation of the Minister of Science, Technology and Telecommunications Luis Adrián Salazar. Their effectiveness in alleviating the digital divide was also questioned.

In the last days, 13 legislators belonging to different political parties presented a bill to the Legislative Assembly to allocate the funds from the National Telecommunications Fund to create a Local Socioeconomic Development Council, which would be financed along with other public resources. The initiative comes after deep questions about the use of Fonatel, both in the pre-pandemic and in response to the Covid-19 emergency. The controversy marked the last weeks of the ICT sector in Costa Rica, and even led to the resignation of the Minister of Science, Technology and Telecommunications Luis Adrián Salazar.

The conflict in relation to the Local Socioeconomic Development Council is the latest in a chain of controversial proposals about Fonatel's destiny. Legislator Vanesa Castro, president of the Chamber of Infocommunication and Technology, assured that the initiative intends to use Fonatel's funds in a sneaky way, modifying part of the Telecommunications Law. This presupposes a lack of transparency, according to Castro, since resources could be made available without control of administrative contracts.

On her part, Yorleny León, from the National Liberation Party, objected to the project because it was against the use of Fonatel's resources for another issue that is not its primary objective, that of reducing the digital divide. Especially in this moment of pandemic where technological differences were more exposed than ever and marked inequalities regarding basic rights such as work and education.

The PNL deputy had already opposed the use of Fonatel’s funds to subsidize the internet to micro and medium-sized companies. That idea was part of a proposal from the Telecommunications Superintendence that was released in early April. León maintained that these subsidies are not intended for those who need it most and added the need to transfer Fonatel to another entity, since it depends on Sutel.

Debt payment. Just a few months before, the Executive Power had already wanted to divert part of Fonatel's resources, but in this case for the payment of debt. That was what the Paying Project was about, a government initiative that was to be financed with the surpluses of ten institutions. Among them was the National Telecommunications Fund, from which they planned to extract US$ 243.7 million.

Marta Acosta, Comptroller General of the Republic, assured that the entity's resources do not fall into the category of surplus and therefore cannot be used in the Executive's project. Acosta said that Fonatel, managed by Sutel, was created as a result of the liberation of the telecommunications market, which aims to narrow the digital gap in vulnerable areas and that therefore it is not a surplus. That is why she asked that the Pay Project be reviewed according to the realities of the institutions in the framework of the Covid-19 pandemic.

The intention of the former finance minister, Rodrigo Chaves, to using Fonatel's money to pay debt, ended up causing the resignation of Luis Adrián Salazar, the now former minister of the Ministry of Science, Technology and Telecommunications.

Salazar stated in his resignation letter to President Carlos Alvarado: "I cannot agree to the use of Fonatel's resources for other purposes than universal and solidary access to telecommunications services, so that they reach most vulnerable people in the country.” After his departure from the ministry, the Micitt was temporarily headed by the vice minister Paola Vega.

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