THE DEMISE OF HONDURAS' ANTI-CORRUPTION COUNCIL

C O N F I D E N T I A L SECTION 01 OF 03 TEGUCIGALPA 002123 SIPDIS STATE FOR WHA, WHA/CEN, AND WHA/PPC, AND DS STATE FOR INL, INL/LP, INR/C, INR/AN/IAA, AND EB STATE PASS AID FOR LAC/CEN AND DCHA/DG/ROL E.O. 12958: DECL: 09/20/2014 TAGS: PGOV KCOR KJUS KCRM ECON PHUM PINR ASEC EAID HO SUBJECT: THE DEMISE OF HONDURAS' ANTI-CORRUPTION COUNCIL YET ANOTHER SIGN OF THE GOH'S WEAK FIGHT AGAINST CORRUPTION REF: A. 04 TEGUCIGALPA 1690 ¶B. 03 TEGUCIGALPA 2844 Classified By: Political Counselor Francisco Palmieri; reasons 1.4 (b) and (d). ¶1. (C) SUMMARY: Once heralded by President Ricardo Maduro as a success story in the fight against corruption, Honduras' National Anti-Corruption Council (Consejo Nacional Anti Corrupcion - CNA) is about to fade from existence. The Maduro Administration plans to coopt the CNA's operations by placing it within the GOH bureaucracy. Roman Catholic Cardinal Oscar Rodriguez will likely resign as head of the CNA in October rather than remain as the figure-head leader of an ineffective institution. With little real GOH support, frustrated members, and funding problems, the CNA never really lived up to its potential. However, already under Transparency International's spotlight for its lackluster achievements in combating corruption to date, the GOH's proposed reorganization will hasten the CNA's demise and once again demonstrate the nation's weakness in combating corruption. Stay tuned for one last media firestorm over who lost Honduras' war on corruption. END SUMMARY. -------------- The CNA's Demise -------------- ¶2. (U) On September 16, Honduran press reported the resignation of German Espinal, Executive Director of the CNA. In public comments, Espinal lambasted the GOH for its lackluster commitment to combating corruption, stating that publicly the GOH talks about fighting corruption, but "the reality is quite different." Espinal apparently privately tendered his resignation to CNA Chairman, Roman Catholic Cardinal Oscar Rodriguez, in late August. Espinal criticized the GOH for not funding the CNA, claiming that, rather than diminishing, corruption is increasing in Honduras. Casting blame widely, Espinal criticized the GOH, both major political parties, police, and well-connected businessmen for allowing a culture of corruption to flourish in Honduras. He added that the Attorney General's anti-corruption office in the Public Ministry (PM) and the Supreme Court of Accounts (Tribunal Superior De Cuentas - TSC) lacks the qualified personnel, technical expertise, and funding to effectively fight corruption in Honduras. ¶3. (SBU) The CNA was conceived under the previous government of Liberal Party President Carlos Flores and its mandate was renewed by current President Ricardo Maduro. The CNA's charge was to develop a national anti-corruption strategy and then help the GOH implement that strategy. The CNA is composed of 14 prominent individuals representing Honduran civil society (some apparently hand-picked by Maduro for their fidelity to the Nationalist Party) and 14 senior GOH officials, although in reality far fewer members actually attended the CNA's monthly meetings or took an active interest in the organization. While the CNA is officially headed by Cardinal Rodriguez, Espinal was responsible for its day-to-day activities. ¶4. (SBU) The CNA did develop a national strategy, but its implementation fell short. Lassitude among the CNA's members, insufficient funds, and lack of any concrete follow-on action by responsible GOH prosecuting and judicial officials all contribute to the CNA's poor performance. Its most significant achievement has been to consistently call public attention to the nation's most blatant corrupt practices, such as government inaction against those responsible for massive bank failures. Most of its credibility emanates from the moral authority of Cardinal Rodriguez. -------------- Cardinal Wants Out -------------- ¶5. (SBU) In a September 9 meeting between the Cardinal and the Ambassador, visiting WHA Deputy Assistant Secretary Dan Fisk, and former Ambassador Cresencio Arcos, Director of International Affairs for the Department of Homeland Security, the Cardinal voiced his frustration with the GOH's commitment to fighting corruption, indicating his desire to resign as chairman of the CNA. The Ambassador asked Cardinal Rodriguez to persevere another month until the CNA's future could be better assured. The Cardinal's chief aide, Father Juan Jose Pineda also told PolCouns on August 30 that Cardinal Rodriguez will depart the CNA in October. Pineda said the Cardinal was unhappy with the lack of concrete GOH support for the CNA and would not remain as a figure-head leader of an inactive and ineffective organization. ¶6. (SBU) The CNA's small staff and other resources have been provided by international donors. USAID has contributed roughly USD 25,000 to the CNA and the international donor community close to another USD 600,000. The GOH's support has been limited to providing office space in a government building and one phone line. (Comment: Sadly, international donors have little to show for this investment. End Comment.) Maduro, and his Minister of the Presidency Luis Cosenza talked last year during a Transparency International country visit of increasing GOH funding for the CNA, but that never came to fruition. ¶7. (SBU) International donor support for the CNA faltered due to the organization's inability to effect change and lack of a clear institutional mandate as the nation's leading anti-corruption entity. Donors withheld future promises of financial support pending a reorganization of the CNA into an independent watch-dog organization managed by civil society. The GOH thwarted all civil society attempts at reorganization for over six months, preferring a plan to incorporate the CNA into the GOH, thus putting the organization under government control. This deadlock contributed to recent speculation regarding the CNA's future. (Comment: In ref B, Post highlighted the probable demise of the CNA if the donor community withdrew its support. End Comment). -------------- CNA Not Alone In Being Ineffective -------------- ¶8. (C) In recent related public comments regarding the GOH's commitment to fighting corruption, Special Prosecutor for Corruption Soraya Morales, (who herself has received extensive training in the U.S. and whose office receives U.S. technical support) stated the GOH should close her office because of its ineffectiveness. While Morales appears to be intent on bringing corruption cases to trial, she has privately confided to PolOff that her office's meager resources make it very difficult to effectively pursue cases. She also indicated that her office does not receive sufficient support from top Public Ministry (PM) management, and in fact, at times is pressured by higher management to not pursue cases. Apart from the challenges her office faces at the PM, Morales noted that even when the PM does move forward on corruption cases, they are inevitably thwarted by judicial interference or indifference. ¶9. (SBU) To highlight the PM's ineffectiveness in prosecuting corruption cases, the Honduran press reports that in ten years of existence, the PM has only effectively prosecuted fifteen cases. This statistic includes all corruption cases. (Note: The GOH has not in recent memory convicted a single prominent individual on corruption charges, although a corrupt congressman was convicted on narcotrafficking charges. End Note.) Currently, the Special Prosecutors' office for corruption at the PM is staffed with 15 corruption prosecutors, of which four are specifically dedicated to financial crimes, plus 13 auditors. These individuals are responsible for all corruption/fraud cases in Honduras, both public and private. -------------- The Partisan Finger-Pointing Begins -------------- ¶10. (U) Honduras' first Attorney General, Liberal Party member Edmundo Orellana, who served under the Carlos Reina administration, also recently joined the fray. In a September 17 interview with Honduran daily El Tiempo, Orellana castigated the GOH for its failure to combat corruption and questioned the GOH's true commitment to stemming corrupt practices. In the interview, he highlighted Honduras' failure to be an original signator to the UN's anti-corruption convention (among the very few Latin American and Caribbean countries not to sign at the original signing ceremony),the GOH's unwillingness to fund the CNA, and the comments of other disgruntled GOH officials tasked with fighting corruption. These indicators, Orellana claimed, send a signal to the international community as to where the GOH truly stands on combating corruption. ¶11. (U) In defense of Maduro's administration, Minister of the Presidency Luis Cosenza noted to El Tiempo that the GOH had no obligation to fund the CNA and that the Maduro administration was working on a proposal to fund a reorganized council. (Note: As highlighted in paragraph seven, this GOH proposed reorganization would stymie the independence and effectiveness of the CNA. There are also rumors a reorganized CNA might fall under the Public Ministry. End Note.) He stated it is the GOH's desire that the international community continue to support a reorganized CNA. -------------- -------------- Honduras' Commitment to Combat Corruption Doubtful -------------- -------------- ¶12. (C) COMMENT: Post has commented extensively on the GOH's weak performance in combating corruption in Honduras and questioned the GOH's true commitment to doing so (refs A and B). Recent troubles with the CNA and comments by disillusioned individuals directly involved in the fight against corruption illustrate how far Honduras still has to go. 13 (C) COMMENT CONTINUED: The Cardinal's pending resignation will certainly spark a media storm of public recrimination over who is responsible for the lagging fight against corruption in Honduras. Post notes, however, there continues to exist broad-based support amongst the Honduran people for effective and more aggressive anti-corruption efforts. As noted in ref B, if the GOH were to get serious about prosecuting a number of high-level, powerful, corrupt figures it would go a long way toward generating greater public support for government institutions and help break the current cycle of cynicism and despair about the inevitability of corruption in Honduras. END COMMENT. Palmer