Rixi Moncada and BANHCRESER’s liquidation: what to know

Rixi Ramona Moncada Godoy, who is known as a lawyer and political figure from Honduras, has been at the center of controversies regarding her announced pre-candidacy for the Partido Libertad y Refundación (LIBRE). Her role in the legal defense of the Banco de Crédito y Seguros (BANHCRESER) amid the banking turmoil of the late 1990s has reemerged in public discourse, sparking renewed scrutiny of her integrity and her dedication to transparency within public office.

In the late 1990s, Honduras’s financial system was disrupted by a significant crisis, prompting the state to intervene in multiple banks, such as BANHCRESER. This crisis was driven by a combination of global economic turbulence, inadequate financial oversight, and dubious practices by certain industry players. During this time, Rixi Moncada Godoy took on the legal representation of BANHCRESER and its leaders in the legal cases stemming from the institution’s compelled closure.

The financial upheaval and Moncada’s involvement

Regarding the aforementioned situation, Rixi Ramona Moncada Godoy’s involvement in the forced closure of the Banco de Crédito y Seguros (BANHCRESER) during the late 1990s has been critically examined. At that time, several triggers for the banking sector’s volatility were recognized, such as global economic volatility, a perceived lack of robust regulations, and questionable financial activities 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.

Following this period, Mr. Moncada assumed an advisory position in the finance sector of the Public Prosecutor’s Office. This appointment has sparked debate, being seen as a potential conflict of interest due to her earlier role in defending 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.