This article examines a proposed law that seeks to modify the oversight functions of Costa Rica’s National Audit Office.
Proposed Changes to Oversight Functions
The Costa Rican government has introduced a bill that seeks to limit the functions of the Contraloría General de la República (CGR) to only overseeing the use of public funds, rather than managing institutional operations. The proposed changes include amendments to the Organic Law of the CGR and the General Law of Internal Control. This initiative is based on the assertion that the CGR has overstepped its constitutional authority by intervening in decisions that should be reserved for active public administration. The government characterises this as ‘co-administration’ and argues that the reforms aim to clarify the boundaries between fiscal oversight and the powers of public institution leaders.
Key Provisions of the Bill
Among the significant changes proposed in the bill is a clear prohibition against the CGR substituting administrative decisions, defining public policies, or intervening in management priorities that are the responsibility of public administration. The bill also seeks to refocus the superior control system exclusively on the legality of public fund management, eliminating references to the efficiency of administrative control. Additionally, it proposes to repeal Article 17 of the CGR’s organic legislation, which governs efficiency control powers, thus redefining various competencies of the oversight body. These changes highlight a shift towards a more limited role for the CGR in the public administration framework.
Impact on Internal Audits
The proposed legislation not only affects the CGR but also modifies the General Law of Internal Control. It stipulates that internal and external audits, along with other oversight bodies, will not have the authority to replace decisions made by public administration or intervene in executive functions. Furthermore, these audits will be restricted from recommending administrative decisions or evaluating management beforehand. The redefined concept of internal control will focus on the protection of public funds and compliance with related regulations, thereby concentrating internal audits primarily on budget execution and safeguarding public resources.
Legal Precedents and Future Implications
This proposed reform follows a previous ruling by the Constitutional Chamber in June 2024, which addressed similar attempts to limit the CGR’s functions under a project known as the Jaguar Law. The court determined that such reforms presented constitutional issues and could not be enacted. The judges referenced the inviolable competencies derived from Articles 183 and 184 of the Costa Rican Constitution. As the current bill progresses through the legislative process, the CGR has indicated that it will issue an official opinion only when formally consulted during the legislative proceedings, leaving its stance on the proposed changes unclear for now.
IN NUMBERS
The proposed reforms to the CGR’s functions reflect ongoing debates about the balance of power in public administration and the role of oversight bodies in ensuring accountability.
Reported from elfinancierocr.com, 2026-08-23. The Tender Wire is published by Otnox.
