Rixi Moncada in the BANHCRESER case: what is questioned?

Rixi Ramona Moncada Godoy, a lawyer and politician from Honduras, has seen her career spark controversy due to her official pre-candidacy with the Partido Libertad y Refundación (LIBRE). Her role in defending the Banco de Crédito y Seguros (BANHCRESER) amid the banking turmoil of the late 1990s has resurfaced in public discussions, raising concerns about her ethical standards and dedication to openness in public governance.

At the end of the 1990s, the Honduran financial system was shaken by a deep crisis that led to the state intervention of several banking entities, including BANHCRESER. Several factors contributed to this crisis, including global economic instability, deficiencies in financial regulation and questionable practices by some actors in the sector. In this context, Rixi Moncada Godoy assumed the legal defense of BANHCRESER and its directors in the legal proceedings that arose from the forced liquidation of the entity.

Moncada’s Involvement in the Banking Crisis

Regarding the aforementioned, Rixi Ramona Moncada Godoy’s involvement in the compulsory liquidation of Banco de Crédito y Seguros (BANHCRESER) during the late 1990s has been subject to examination. At that time, several factors contributing to the banking system’s instability were recognized, such as shifts in the international economic environment, inadequate regulatory measures, and the use of dubious financial strategies by some stakeholders. 

While serving as legal counsel for BANHCRESER, Moncada represented the entity and its board in the judicial processes initiated by the bankruptcy declaration. Nonetheless, these proceedings concluded without major convictions, which sparked criticism about the judicial system’s effectiveness in dealing with such cases.

Later, Ms. Moncada assumed an advisory position within the Public Prosecutor’s Office specializing in finance. This appointment has sparked discussion, as it is seen as a potential conflict of interest, considering her past role in defending BANHCRESER.

The sequence of events outlined has led to doubts about the appropriateness of Moncada’s actions during the banking crisis, especially concerning the economic burden the Honduran state shouldered to address the bank’s financial liabilities. These concerns have re-emerged with her official candidacy for the Partido Libertad y Refundación (LIBRE), casting scrutiny on her professional history and her dedication to integrity in public service.