Costa Rica ex-leader jailed for embezzlement

updated 5:11 a.m. ET Oct. 6, 2009

SAN JOSE, Costa Rica - A former Costa Rican president was convicted and sentenced to five years in prison Monday for embezzling funds from a Finnish loan intended for medical equipment for public hospitals.

Rafael Calderon, who was president from 1990-1994, was accused of receiving $520,000 from a 2004 Finnish government loan to Costa Rica's social security system. He still faces separate corruption charges.

The 60-year-old politician said he would appeal the court decision but is reconsidering a 2010 run for president. He has returned the money and says he received it as payment for consulting work.

"I'm in great shock," Calderon said. "All we have lost here is a battle but we will continue fighting."

Reading the verdict on national television, Judge Teresita Rodriguez said there was no proof Calderon did consulting work.

Prosecutors alleged that about $8 million of the $40 million loan, which was meant to buy medical equipment, was split among eight officials and political figures, including Calderon.

More on: Costa Rica

More from msnbc.com Thanksgiving is about odd family dynamics Elkhart Project: Money pours in, pet adoptions increase Swine flu fears for hajj pilgrims First Read: Pardon my turkey, and other trivia 570,000 pager messages from 9/11 released   Silver Lining: Tales of struggle and hope On Twitter: Breaking news updates | Weird and wild

MORE FROM AMERICAS

Americas Section Front

Iran’s leader makes inroads in Latin America New blackout hits Rio Trucker program attracts drug smugglers Woman loses benefits over Facebook pics   Dissidents, pro-Castro forces clash in Cuba Americas Section Front   Add Americas headlines to your news reader: