US embassy cable - 04TEGUCIGALPA2356

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