C O N F I D E N T I A L TEGUCIGALPA 002514

SIPDIS

STATE FOR INL, EB, AND INR
STATE FOR WHA/CEN, WHA/PPC

E.O. 12958: DECL: 10/27/2013
TAGS: PGOV KJUS KCRM ECON EAID EFIN PINR HO
SUBJECT: HONDURAN VICE PRESIDENT UNSETTLES MADURO
GOVERNMENT WITH ACCUSATIONS OF CORRUPTION


Classified By: Political Counselor Francisco Palmieri;
Reasons 1.5 (B) and (D).


1. (U) On October 21, Honduran Vice President Armida de Lopez
Contreras (one of three presidential designates in the
current Honduran constitutional leadership structure) stirred
up a hornets nest when she accused an unnamed high ranking
Government of Honduras (GOH) official of tampering with USD
24 million in international development aid. The Vice
President's public remarks left ministers scurrying for
cover, drawing the ire of some of President Maduro's closest
advisors.


2. (C) While Contreras has yet to identify the name of the
accused, the Honduran press narrowed the list to three
possible individuals who have access to these particular
development funds: Mariano Jimenez, Minister of Agriculture;
Jorge Carranza, Minister of Transportation; and Elias
Lizardo, Minister of Health. All three ministers deny any
wrongdoing. The Embassy learned from another source,
however, that the corrupt official is allegedly Roberto
Rodrigo Castillo Callejas, who earned the nickname. Roberto
"Ladron" (Thief) Castillo during the previous Nationalist
government of Rafael Callejas. Castillo is a senior GOH
advisor who reports directly to the Casa Presidencial.
Contreras also confided that Minister Jimenez is the one who
is refusing to follow established anti-corruption procedures.


3. (U) The USD 24 million has been earmarked by the GOH to
fund a development project along its northern border with El
Salvador and Guatemala known as Plan Trifinio. The project
is funded jointly by the Inter-American Development Bank and
the Central American Bank for Economic Integration.


4. (U) In a follow-up interview on October 22 with the press,
Contreras claimed various high ranking GOH officials have
attempted to intimidate her by threatening to strip her of
all her official duties. She mentioned by name Jorge Ramon
Hernandez, Minister of Government, Ramon Medina Luna,
Maduro's National Security Advisor, and Luis Cosenza,
Minister of the Presidency. Contreras vowed that she would
not be cowed and would continue her campaign to bring
transparency to public finances.


5. (C) Comment: Armida Lopez Contreras has been a moving
force in the GOH's greatly improved drug interdiction effort.
She has taken firm control and leadership of the moribund
National Council to Combat Drug Trafficking and is forcing
GOH law enforcement agencies to work together. She has
spoken forthrightly about drug trafficking corruption and
worked hard to improve the GOH's interdiction capabilities.
However, she is not a part of the President's inner circle of
advisors. There is an underlying political isolation to her
role in the government as well. She possesses enormous
fortitude and determination to carry out her policy
responsibilities and to pursue program goals, such as her
under-funded demand reduction program, "Si Se Puede." Her
frustration with government ministries that refuse to carry
out their work or worse (misdirecting or stealing funds),
apparently boiled over in this incident. Finally, she also
harbors ambitions of running for the Presidency, perhaps even
in this next election cycle; although her name has not been
mentioned recently as a possible candidate. End Comment.
Palmer