HONDURAN PUBLIC MINISTRY DROPPING CORRUPTION

C O N F I D E N T I A L SECTION 01 OF 02 TEGUCIGALPA 002356

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: 10/20/2014
TAGS: PGOV KCOR KJUS KCRM ECON PHUM PINR EAID HO
SUBJECT: HONDURAN PUBLIC MINISTRY DROPPING CORRUPTION
CHARGES AGAINST FORMER PRESIDENT CALLEJAS

REF: A. TEGUCIGALPA 2123


B. TEGUCIGALPA 1690

C. TEGUCIGALPA 729

D. TEGUCIGALPA 400

Classified By: Ambassasador Larry L. Palmer;
reasons 1.4 (b) and (d).


1. (C) SUMMARY: While other countries in the region have
taken steps to arrest and/or prosecute high-level corrupt
individuals, Honduras appears to be moving in the opposite
direction. On October 18, the Public Ministry officially
dropped all pending corruption charges against ex-president
(and National Party leader) Raphael Leonardo Callejas and a
number of other Callejas associates, some of whom continue to
hold prominent positions within the GOH. These actions
appear to have been orchestrated by the Honduran Attorney
General (AG),Ovidio Navarro, who once served as Callejas'
attorney and who continues to maintain a close relationship
with him. This latest action, unfortunately, once again
raises serious questions regarding Honduras' commitment to
fighting corruption and upholding the rule of law. END
SUMMARY.

--------------
Navarro Shows His True Colors
--------------


2. (C) On October 18, the Honduran Public Ministry officially
dropped all pending corruption charges against ex-president
Raphael Leonardo Callejas (1990-94) and a number of other
Callejas associates, some of whom continue to hold prominent
positions within the GOH. In all, 15 cases were dismissed.
Many cases were over 10 years old; others, however, were as
recent as 2003. The cases appear to have been dismissed over
the objection of prosecutors responsible for these cases. In
fact, PolOff received a desperate phone call from Martha
Valladares, acting special prosecutor for corruption at the
PM, pleading that the Embassy intervene with the GOH to have
the decision reversed. (Note: Special Prosecutor for
Corruption Soraya Morales is in Japan for training. The
timing of the announcement is unlikely to be a coincidence.
End Note.) Valladares told PolOff that AG Navarro ordered
the cases be dropped because of his connections with
Callejas. Valladares went on to note that she believed the
pending cases at the PM were strong and the only thing
holding back successful prosecutions was the lack of interest
by high level officials in moving the cases forward. The
official reason given by the PM for dismissing the cases was
that they were old and cluttering up the system. By
dismissing these 15 cases, out of a total of approximately
over 1,300 pending corruption cases, the PM claimed that the
justice system in Honduras would work more smoothly.


3. (C) When AG Navarro assumed control of the Public Ministry
(PM) in February 2004, he assured the Honduran people and the
Ambassador that he would aggressively pursue cases against
corrupt individuals, regardless of their status in Honduran
society (ref C). This has not been the case. Continuing in
the path of his predecessor, Roy Medina, Navarro has chosen
to obfuscate and eschew rather than pursue meaningful cases
against "big fish." In this recent case, AG Navarro claims
he had recused himself because of his known connections to
Callejas. However, it appears certain he was behind the
decision to have the cases dismissed.

--------------
PM's Undistinguished Record Gets Worse
--------------


4. (C) The dismissal of cases against Callejas and his
associates continues an unimpressive record at the PM in
fighting corruption. Post notes that in ten years of
existence, the PM has only effectively prosecuted fifteen
corruption cases (refs A and B). In the past, the PM has
claimed that lack of resources, personnel, and other
logistical constraints have hindered effective action on
corruption cases. It should be noted that the Public
Ministry, while part of the GOH, is an independent
organization, a fact the GOH often cites when the PM makes
controversial decisions. However, it is clear that little,
if any, political will exists at higher levels within the GOH
to effectively pursue meaningful cases.

--------------
Other GOH Officials Speak Out
--------------


5. (C) On October 14, PolOff met with German Espinal,
ex-Executive Director of the now defunct National
Anti-Corruption Council (ref A). Espinal reiterated his
frustration in working with the GOH on corruption issues,
noting that in almost every area, the GOH is either unable or
unwilling to make meaningful progress. Espinal said he still
believed many individuals within the GOH wanted to "do the
right thing" but they do not out of fear of losing their
jobs, or worse.


6. (SBU) Also on October 14, PolOff met with Doris Aguilar,
head of the PM's Organized Crime Unit. Aguilar expressed
some exasperation in working with high-level GOH officials,
particularly the Honduran judiciary, in moving cases forward.
However, in a surprise move, Aguilar, together with six
other prosecutors, publicly supported the PM leadership on
the latest corruption decisions, arguing that the PM's
dropping of corruption charges against Callejas and his
associates should not be reversed.

--------------
U.S. Anti-Corruption Assistance
--------------


7. (U) In an effort to improve anti-corruption efforts, U.S.
anti-corruption assistance in Honduras seeks to build more
responsive, effective, and professional institutions in the
legal system, including the Public Ministry. Through USAID's
regional strategic objective for ruling justly, Embassy
programs seek more responsive and transparent governance, to
include the strengthened rule of law and respect for human
rights, and the greater transparency and accountability of
government. These programs seek to lay the groundwork for
greater respect for the rule of law and improved functioning
of the judicial system, both essential elements of democratic
governance.


8. (U) Other Embassy programs sponsored through POL/INL, DEA,
ECON, and PAS seek to expand anti-corruption training and
promote better law enforcement techniques. Of particular
interest, USAID is in the process of finalizing a 4.5 year
contract on improving transparency and anti-corruption
activities to Honduras. PAS is also sponsoring an
anti-corruption speaker, Dr. Edmundo Orellana Mercado, who,
apart from delivering remarks at an upcoming civil society
forum, will also be meeting with various GOH officials.

--------------
GOH Must Re-Focus Anti-Corruption Efforts
--------------


9. (C) Comment: While the GOH remains rhetorically committed
to fighting corruption, its record in prosecuting corruption,
unfortunately, remains undistinguished. At a time when its
neighbors are moving forward, however painfully, on
corruption charges against high-level individuals, Honduras
increasingly risks being portrayed as out of step. Without
doubt, a vast majority of Hondurans would support a more
active push by the Public Ministry to demonstrate a
commitment to the rule of law and greater accountability.
The time has come for the GOH, if it wants to do something
concrete about the pervasive corruption that permeates
Honduras, to demonstrate a commitment to prosecuting
high-level corruption. The place to start would be to work
to reverse the PM's recent decision to dismiss corruption
cases against Callejas and his associates. End Comment.
Palmer