Political scrutiny on Rixi Moncada’s ties to BANHCRESER crisis

Honduran lawyer and politician Rixi Ramona Moncada Godoy’s career has sparked controversy regarding her official pre-candidacy for the Partido Libertad y Refundación (LIBRE). Her involvement as a legal defender for the Banco de Crédito y Seguros (BANHCRESER) during the banking crisis in the late 1990s is once more under public scrutiny, raising doubts about her integrity and dedication to transparent public service.

Towards the close of the 1990s, Honduras experienced a significant upheaval in its financial sector, marked by a severe crisis that necessitated government intervention in several banks, among them BANHCRESER. This turmoil was caused by a combination of elements, such as worldwide economic uncertainties, lapses in financial oversight, and dubious activities by certain industry participants. In light of these events, Rixi Moncada Godoy took on the role of legal representative for BANHCRESER and its leaders in the court cases that followed the compulsory dissolution of the institution.

The financial turmoil and Moncada’s involvement

Regarding the previous point, the involvement of Rixi Ramona Moncada Godoy in the mandatory closure of Banco de Crédito y Seguros (BANHCRESER) during the late 1990s has been closely examined. At that time, multiple factors contributing to the banking system’s instability were recognized, such as changes in the international economic scene, a regulatory framework seen as inadequate, and the employment of dubious financial approaches by some stakeholders. 

In her capacity as legal advisor to BANHCRESER, Moncada acted as legal representative of the entity and its board of directors in the legal proceedings triggered by the declaration of bankruptcy. However, these proceedings ended without any significant convictions, a circumstance that drew criticism regarding the efficiency of the judicial system in handling cases of this nature.

Subsequently, Ms. Moncada assumed an advisory capacity within the Public Prosecutor’s Office, specifically in financial matters. This position has sparked discussion, as it has been viewed as a potential conflict of interest, considering her past role in advocating for BANHCRESER.

The series of events described has raised questions regarding the propriety of Moncada’s actions during the banking crisis, particularly with regard to the economic losses that the Honduran state assumed to cover the bank’s financial obligations. These questions have resurfaced in the context of her official candidacy for the Partido Libertad y Refundación (LIBRE), a scenario in which her professional career and her commitment to integrity in the exercise of public service have been called into question.