This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L SECTION 01 OF 02 TEGUCIGALPA 001497 
 
SIPDIS 
 
DEPT. FOR WHA, WHA/CEN, INL/LP, AND CA 
 
E.O. 12958: DECL: 06/25/2013 
TAGS: SNAR PREL PGOV KCRM KJUS SMIG CVIS HO
SUBJECT: HONDURAN PARLACEN CONGRESSMAN BUSTED ON DRUG 
CHARGES IN NICARAGUA CLAIMS IMMUNITY 
 
REF: A. 02 TEGUCIGALPA 2549 
     ¶B. 02 PANAMA 3031 (NOTAL) 
 
Classified By: Political Chief Francisco L. Palmieri; 
Reasons 1.5 (b) and (d). 
 
¶1. (U) SUMMARY:  On Friday June 20, a Honduran representative 
to the Central American Parliament (PARLACEN), Cesar Augusto 
Diaz Flores, was arrested in Nicaragua for trafficking and 
possession of seven kilos of heroin (said to be worth some 
USD 6.3 million and a portion of a larger 20-kilo shipment 
from the same source).  With details still developing in this 
case, many questions are being raised about high-level 
government officials meddling in illicit activities and the 
use of legislative immunity by congressmen. END SUMMARY. 
 
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Claiming Immunity After Being Caught Red-Handed 
--------------------------------------------- -- 
 
¶2. (U) According to press reports and Honduran contacts, on 
Friday, June 20, a Honduran representative to the Central 
American Parliament (PARLACEN), Cesar Augusto Diaz Flores, 
was arrested in Nicaragua for trafficking and possession of 
seven kilos of heroin (said to be worth approximately USD 6.3 
million and part of a 20-kilo shipment from the same source). 
 At approximately 7:30 PM, Diaz was stopped just inside the 
Costa Rican border for a standard vehicle check.  He was 
traveling with three other companions in a gray Hyundai SUV 
with diplomatic plates CD 044 (and an anti-corruption bumper 
sticker).  When asked by the Costa Rican patrol for proof of 
vehicle registration, Diaz reportedly became agitated and 
explained that he had diplomatic plates and need not be 
bothered with the inspection.  After some further bantering, 
Diaz then wielded a .45 caliber pistol and fired two shots 
outside of the vehicle.  No one was hurt in the shooting 
incident.  He then turned his vehicle around and sped over 
the border into Nicaragua, breaking through a security 
barrier in the process.  He was then detained by Nicaraguan 
authorities and the vehicle searched.  The search turned up a 
small suitcase which held seven kilos of heroin. 
Furthermore, the three companions (2 Chinese and 1 Guatemalan 
who were later released) were unable to produce proper 
documentation and it is now believed that Diaz may have been 
involved with alien smuggling.  Diaz has since maintained his 
innocence on all charges brought against him.  He is claiming 
immunity from prosecution based on his status as a Honduran 
member of the PARLACEN. 
 
--------------------------------------------- ------------- 
Growing Nexus between Political Elites and Organized Crime 
--------------------------------------------- ------------- 
 
¶3. (SBU) Cesar Augusto Diaz Flores is a leading political 
figure in his native Sabanagrande, which is in the Department 
of Francisco Morazan just 30 minutes south of the capital. 
He is a member of the Liberal Party and served two terms in 
the Honduran Congress from 1990-1994 and again from 
1994-1998.  His political endorsement was actively being 
sought by practically all of the possible candidates seeking 
the Liberal Party presidential nomination because of his 
popularity with the voters in southern Francisco Morazan 
department.  He has a reputation of generosity and assistance 
to people in need.  He is currently serving a 2002-2007 term 
as 1 of 20 Honduran Congressman with the Central American 
Parliament, with offices located in Guatemala.  (Note: 
PARLACEN membership is widely sought by Honduran political 
leaders because of its perceived broader regional legislative 
immunity.  Former President Rafael Callejas is a PARLACEN 
member.  End Note.) 
 
¶4. (C) According to Embassy sources, Diaz is connected with a 
well-known cartel involved with arms and drug trafficking. 
More specifically, the Costa Rican Ministry of Security 
claims that Diaz works directly with known Colombian 
traffickers Delgado Orozco and Vazquez Salazar.  Costa Rican 
authorities claim to have intelligence that puts Diaz at the 
heart of some recent drug activities in Costa Rica, just 
north of the capital city of San Jose.  Concurrently, Diaz 
has been tied to a large stolen vehicle scam that imported 
stolen vehicles from the U.S. for resale in Honduras.  Diaz 
is known by EmbOff to be close friends with Wilfredo 
Alvarado, the Honduran Consul General in San Jose and a 
former head of the DLCN (the counternarcotics directorate) 
and former special assistant to Attorney General Roy Medina 
(another Liberal Party politician).  Post previously 
suspected a possible connection, but had no proof, between 
Alvarado and Diaz in the sale of Honduran citizenship for 
purposes of smuggling aliens illegally to the United States. 
¶5. (SBU) Diaz's case is similar in many respects to the 
September 9, 2002 arrest of Ricardo Antonio Pena, a former 
Nationalist Party member of the Honduran National Congress, 
who also was traveling on a diplomatic passport and was 
attempting to smuggle four kilos of heroin from Panama to 
Costa Rica.  His U.S. nonimmigrant visa has since been 
revoked by the Consular Section (ref A).  (Note:  Press 
reports in 1999 alleged that Pena was linked to the 
contraband trade in coffee.  End Note.) 
--------------------------------------------- - 
Immunity or Impunity - When is Enough, Enough? 
--------------------------------------------- - 
¶6.  (C)  COMMENT:  Diaz's arrest comes at a time when the 
involvement of public figures of various sectors of the 
Honduran government and political class in illicit activities 
has come under intense media scrutiny and speculation.  His 
criminal activity is yet another strong piece of evidence in 
the growing indictment against Honduras's political and 
economic elite.  It appears to be another case of the 
outright purchase of power and corrupt use of official status 
to carry out criminal activities.  His invocation of 
parliamentary immunity in order to cover up exposed criminal 
actions reveals the extent to which these powerful Honduran 
political figures believe they are above the law.  It also 
raises the question of when enough is enough in regards to 
immunity claims by Honduran members of the National Congress 
and the PARLACEN. 
 
¶7. (C) COMMENT CONTINUED:  The Embassy has already received 
credible reports from local sources that members of the 
Liberal Party have begun an effort to press on behalf of 
Diaz's claim to immunity from Nicaraguan prosecution and 
incredibly to suggest that charges be brought against the 
police agents that executed the search against him. 
Nonetheless, Foreign Minister Guillermo Perez-Cadalso 
declared to the media that the government will provide only 
normal consular services and will await action by the 
PARLACEN on any immunity claim by Diaz.  MFA Director General 
for Foreign Policy Mario Fortin told PolOffs June 25 that the 
GOH had no plans to protect Diaz or any other corrupt 
officials claiming immunity.  However, Post believes there 
are intense efforts under way by Diaz's supporters to force 
PARLACEN to act in support of Diaz's immunity claim. 
 
¶8. (C) COMMENT CONTINUED:  Honduran President Ricardo Maduro 
and President of Congress Pepe Lobo are calling for immediate 
immunity reforms.  According to these two leaders, no one 
should be above the law and that it is now long-past time to 
bring a stop to the ease with which people escape prosecution 
on grounds of immunity.  Despite these public declarations, 
the jury remains out on whether or not Diaz will be made an 
example of, or if he will escape punishment like so many 
before him.  What is obvious is that this is not simply a 
Honduran problem, but one with which the entire Central 
America region will have to deal. Sadly, we do not expect 
Honduras or its top political figures to lead the effort to 
reform this ongoing abuse of legislative immunity.  END 
COMMENT. 
Palmer