PRESIDENT ZELAYA ASKS CONGRESS TO INVESTIGATE AND

C O N F I D E N T I A L TEGUCIGALPA 000336

SIPDIS

SIPDIS

E.O. 12958: DECL: 04/09/2018
TAGS: PGOV KDEM EFIN ENRG HN
SUBJECT: PRESIDENT ZELAYA ASKS CONGRESS TO INVESTIGATE AND
IMPEACH SUPREME COURT OVER "HOY NO CIRCULA" DECISION

REF: TEGUCIGALPA 334

Classified By: Ambassador Charles A. Ford, reasons 104. (B & D)


1. (C) Summary. President Manuel Zelaya attributes his
electoral victory two years ago to his promise to contain
energy prices and has subsidized fuel prices and electricity
rates since he entered office. The cost of those subsidies
has become unsustainable. In a poorly thought-out plan to
reduce oil imports and foreign exchange losses without
raising prices, he designed a program called "Hoy no Circula"
(Don't Drive Today) which would force car owners to select
one day a week on which they would not drive. Public
reaction was overwhelmingly negative, and five cases were
filed with the Supreme Court alleging the plan interfered
with a citizen's right to freely circulate within the
territory. Before the court could rule, Zelaya implemented
the plan by executive decree and warned the court not to
"politicize" their decision. When the court ruled in favor
of receiving the cases and suspended the measure on April 9,
Zelaya blasted the court and the entire National Party, and
asked the Congress to investigate and impeach the Supreme
Court. On April 10, the Chief Justice of the Supreme Court
said she received death threats. Although the President of
Congress, through two confidantes, assured us the Congress
would not form a committee or take action against the
justices, these threats are still very concerning. This is
not just about restricting the circulation of vehicles but a
much bigger battle by Zelaya and his people to perpetuate
their power and ideas after he leaves office. End Summary.

Hoy No Circula
--------------

2. (U) In late March, the Zelaya administration announced a
plan termed "Hoy no Circula" (don't drive today) which would
force car owners to select one day a week (other than Sunday)
on which they would not drive and obtain a windshield sticker
indicating that day. According to the creators, the plan was
designed to reduce oil imports and foreign exchange losses
without either raising pump prices or devaluing the exchange
rate. Subsides to keep pump prices from rising despite sharp
increases in global oil prices (Honduras produces no oil),
and electricity rates that do not cover the national
electrical company's costs (70 percent of electricity is
generated with fuel oil) are busting the budget. The new IMF
Standby Agreement requires the GOH to reduce these subsidies.

Program Extremely Unpopular
--------------

3. (SBU) Reaction to the announcement was visceral, as almost
all segments of society were against it -- except the most
poor, who do not own vehicles. (Note: This poorest segment
of society is one of the core constituencies of the Zelaya
administration's leftist advisors known as the "Patricios."
End Note.) Citizens complained because they paid taxes and
felt a restriction violated their rights to free movement
within the territory, and also complained that there were no
viable, safe options for mass transit. Many private citizens
spoke out about the plan, such as a pregnant woman who said
she feared for her baby's life if she were forced to ride
public transportation. National Party Mayor Ricardo Alvarez
became one of the most visible spokespersons against the
measure, organizing a campaign for all drivers to drive with
their lights on April 4 (it was mildly successful),and
opening an office that offered free legal services to those
who were fined under the program (USD 36 for driving on an
unauthorized day). National Party Congressman Antonio Rivera
threatened to file a motion in the Congress to stop the plan,
but was not recognized by the President of Congress Roberto
Micheletti even though he held his hand up for several hours
requesting permission to speak. Even Liberal Party Members
of Congress expressed displeasure with the plan, most notably
Jose Azcona Bocock, Micheletti's campaign manager, who also
attempted to file a motion with in the Congress to have the
measure thrown out. In the end, five challenges were filed
with the Supreme Court.

Measure Enacted By Executive Decree
--------------

3. (C) Before the court ruled on these five cases, Zelaya

decided to enact the measure by executive decree. He even
warned the court publicly that it should not "politicize" its
decision in this case. People began to report to the various
offices to choose which day they would not drive and pick up
their stickers. (Note: No one knows who actually produced
these hundreds of thousands of stickers -- there was no
public solicitation for bids. The stickers simply showed up
in the offices overnight, probably making the printer a hefty
profit. End note.) Then on April 7, the program was
officially inaugurated, with Minister of the Presidency
Enrique Flores Lanza walking to work (with dozens of armed
guards around him) in a symbolic show of solidarity. Casual
observation the first two days indicated compliance with the
new rules was mixed, and the effect on traffic congestion was
not noticeable. If anything, congestion increased as police
stopped vehicles to inspect stickers.

Supreme Court Decision - and Zelaya's Reaction
-------------- -

4. (U) On April 9, the Supreme Court announced in a mixed
decision (nine in favor, six against) that of the five cases
presented, four of them were in compliance with the
requirements in order to be accepted for review. The cases
will go to the Constitutional Court to be considered, but in
the meantime, the court suspended "Hoy no Circula" until a
decision could be reached. Zelaya immediately interrupted
all local television broadcasts with a scathing denunciation
of the court for its "political" decision and attacking the
National Party repeatedly for its actions and attitude in
general. He also called for the Congress to "investigate"
and "impeach" justices who he accused of having made a
political decision in the case. Subsequently, two Micheletti
confidantes, Gabriela Nunez, Micheletti's vice presidential
candidate, and Jose Saavedra, Liberal Party whip, both
assured us that Micheletti would not form a committee and
would not investigate the judges for misconduct. Saavedra
was confident that Micheletti could calm Zelaya down and
convince him that attacking the independence of the court was
not in anyone's interests.

Supreme Court Chief Justice Receives Death Threats
-------------- --------------

5. (C) On April 10, PolCouns spoke to Supreme Court Chief
Justice Vilma Morales who tearfully described death threats
she had received on her personal cell phone. Morales also
described the threatening phone call she had received from
Zelaya prior to the issuance of a decision. Morales went
public later that evening, but kept a strong public face and
continued to insist on the independence of the court and the
separation of powers.

Comment
--------------

6. (C) Zelaya has been under siege recently and his reaction
has been to come out swinging. He forcibly took over radio
slots on the most popular stations (see REFTEL),and took
over television broadcasts to issue threats against the
Supreme Court. He will probably use the suspension of the
"Hoy no Circula" program to finally remove the unrealistic
and unsustainable fuel subsidies, raise prices on gasoline
and electricity, and blame it on the National Party. This
whole predicament, however, is not just about a measure to
keep cars off the road one day a week. It is about Zelaya
and his "Patricios" plan to implement their populist ideas
and ensure their longevity after Zelaya leaves office. To
perpetuate their power and their ideas, Zelaya has
disregarded his personal dislike for Micheletti and joined up
with him publicly in a political alliance. Gabriela Nunez
told us that internal party numbers showed Micheletti with an
abysmal 16 percent, trailing both Eduardo Maldonado with 20
percent and current Vice President Elvin Santos with 21
percent. Nunez said that their only hope of victory in the
primaries was to join forces with Zelaya. This alliance
brings the Liberal Party presidency and some of the poorest
bases, but in exchange, Micheletti has allegedly given up
major positions to Zelaya's "Patricios." What is most
concerning, however, in this entire scenario are the threats
made by Zelaya both directly and indirectly against the
Supreme Court. Although Micheletti, through Nunez and
Saavedra, has assured us that the Congress will not form a

committee nor take any action against the justices, control
over the court, both current and subsequent, is all-important
for this power-hungry political class. Micheletti believes
he will be able to calm Zelaya's ire but we fully expect
future attacks against this institution. End Comment.
Ford