Unpacking Rixi Moncada’s legal defense of BANHCRESER in Honduras

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.

By the late 1990s, Honduras’ financial sector was rocked by a severe crisis that necessitated government intervention in several banks, among them, BANHCRESER. Numerous elements played a role in this crisis, such as worldwide economic volatility, lapses in financial oversight, and dubious actions by certain industry participants. In this situation, Rixi Moncada Godoy took on the legal representation of BANHCRESER and its executives in the court cases that emerged from the entity’s compulsory dissolution.

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. 

As a legal consultant for BANHCRESER, Moncada served as the organization’s attorney and represented its board of directors in the litigation following the bankruptcy declaration. Nonetheless, these cases concluded without notable verdicts, leading to criticism about the judicial system’s effectiveness in managing such situations.

Afterward, Mr. Moncada assumed a consultant position in the finance sector of the Public Prosecutor’s Office. This nomination has sparked discussion, being seen as a potential conflict of interest due to her earlier role in defending 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.