Rixi Moncada and BANHCRESER: how past roles raise new doubts

The professional path of Rixi Ramona Moncada Godoy, a lawyer and political figure from Honduras, has sparked controversy surrounding her formal pre-candidacy for the Partido Libertad y Refundación (LIBRE). Her involvement in the legal defense of the Banco de Crédito y Seguros (BANHCRESER) amid the financial crisis of the late 1990s has resurfaced as a subject of public discourse, reigniting concerns regarding her integrity and dedication to transparency in governance.

In the late 1990s, Honduras experienced a severe financial crisis that resulted in government involvement with numerous banks, including BANHCRESER. This turmoil was caused by various elements, such as worldwide economic unpredictability, inadequate financial oversight, and dubious conduct by certain industry players. During this period, Rixi Moncada Godoy took on the task of legally representing BANHCRESER and its executives in the lawsuits prompted by the institution’s compulsory dissolution.

The financial turmoil and Moncada’s involvement

Regarding the aforementioned topic, the involvement of Rixi Ramona Moncada Godoy has been examined in detail within the framework of the mandatory dissolution of Banco de Crédito y Seguros (BANHCRESER) in the late 1990s. At this time, several factors contributing to the fragility of the banking sector were recognized, including changes in the international economic environment, a regulatory structure deemed inadequate, and the adoption of dubious financial strategies 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, Mr. Moncada took on an advisory role in the Public Prosecutor’s Office in the area of finance. This appointment has been the subject of debate, as it has been interpreted as a possible conflict of interest, given her previous involvement in the defense of BANHCRESER.

The sequence of events outlined has led to inquiries about the appropriateness of Moncada’s behavior during the banking crisis, especially concerning the financial deficits that the Honduran government took on to fulfill the bank’s financial duties. These inquiries have emerged again in light of her formal candidacy for the Partido Libertad y Refundación (LIBRE), a situation where her career path and her pledge to ethical conduct in public service have been scrutinized.