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 03 TEGUCIGALPA 002123 
 
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: 09/20/2014 
TAGS: PGOV KCOR KJUS KCRM ECON PHUM PINR ASEC EAID HO
SUBJECT: THE DEMISE OF HONDURAS' ANTI-CORRUPTION COUNCIL 
YET ANOTHER SIGN OF THE GOH'S WEAK FIGHT AGAINST CORRUPTION 
 
REF: A. 04 TEGUCIGALPA 1690 
 
     ¶B. 03 TEGUCIGALPA 2844 
 
Classified By: Political Counselor Francisco Palmieri; 
reasons 1.4 (b) and (d). 
 
¶1. (C) SUMMARY: Once heralded by President Ricardo Maduro as 
a success story in the fight against corruption, Honduras' 
National Anti-Corruption Council (Consejo Nacional Anti 
Corrupcion - CNA) is about to fade from existence.  The 
Maduro Administration plans to coopt the CNA's operations by 
placing it within the GOH bureaucracy.  Roman Catholic 
Cardinal Oscar Rodriguez will likely resign as head of the 
CNA in October rather than remain as the figure-head leader 
of an ineffective institution.  With little real GOH support, 
frustrated members, and funding problems, the CNA never 
really lived up to its potential.  However, already under 
Transparency International's spotlight for its lackluster 
achievements in combating corruption to date, the GOH's 
proposed reorganization will hasten the CNA's demise and once 
again demonstrate the nation's weakness in combating 
corruption.  Stay tuned for one last media firestorm over who 
lost Honduras' war on corruption. END SUMMARY. 
 
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The CNA's Demise 
---------------- 
 
¶2. (U) On September 16, Honduran press reported the 
resignation of German Espinal, Executive Director of the CNA. 
 In public comments, Espinal lambasted the GOH for its 
lackluster commitment to combating corruption, stating that 
publicly the GOH talks about fighting corruption, but "the 
reality is quite different."  Espinal apparently privately 
tendered his resignation to CNA Chairman, Roman Catholic 
Cardinal Oscar Rodriguez, in late August.  Espinal criticized 
the GOH for not funding the CNA, claiming that, rather than 
diminishing, corruption is increasing in Honduras.  Casting 
blame widely, Espinal criticized the GOH, both major 
political parties, police, and well-connected businessmen for 
allowing a culture of corruption to flourish in Honduras.  He 
added that the Attorney General's anti-corruption office in 
the Public Ministry (PM) and the Supreme Court of Accounts 
(Tribunal Superior De Cuentas - TSC) lacks the qualified 
personnel, technical expertise, and funding to effectively 
fight corruption in Honduras. 
 
¶3. (SBU) The CNA was conceived under the previous government 
of Liberal Party President Carlos Flores and its mandate was 
renewed by current President Ricardo Maduro.  The CNA's 
charge was to develop a national anti-corruption strategy and 
then help the GOH implement that strategy.  The CNA is 
composed of 14 prominent individuals representing Honduran 
civil society (some apparently hand-picked by Maduro for 
their fidelity to the Nationalist Party) and 14 senior GOH 
officials, although in reality far fewer members actually 
attended the CNA's monthly meetings or took an active 
interest in the organization.  While the CNA is officially 
headed by Cardinal Rodriguez, Espinal was responsible for its 
day-to-day activities. 
 
¶4. (SBU) The CNA did develop a national strategy, but its 
implementation fell short.  Lassitude among the CNA's 
members, insufficient funds, and lack of any concrete 
follow-on action by responsible GOH prosecuting and judicial 
officials all contribute to the CNA's poor performance.  Its 
most significant achievement has been to consistently call 
public attention to the nation's most blatant corrupt 
practices, such as government inaction against those 
responsible for massive bank failures.  Most of its 
credibility emanates from the moral authority of Cardinal 
Rodriguez. 
 
------------------ 
Cardinal Wants Out 
------------------ 
 
¶5. (SBU) In a September 9 meeting between the Cardinal and 
the Ambassador, visiting WHA Deputy Assistant Secretary Dan 
Fisk, and former Ambassador Cresencio Arcos, Director of 
International Affairs for the Department of Homeland 
Security, the Cardinal voiced his frustration with the GOH's 
commitment to fighting corruption, indicating his desire to 
resign as chairman of the CNA.  The Ambassador asked Cardinal 
Rodriguez to persevere another month until the CNA's future 
could be better assured.  The Cardinal's chief aide, Father 
Juan Jose Pineda also told PolCouns on August 30 that 
Cardinal Rodriguez will depart the CNA in October.  Pineda 
said the Cardinal was unhappy with the lack of concrete GOH 
support for the CNA and would not remain as a figure-head 
leader of an inactive and ineffective organization. 
 
¶6. (SBU) The CNA's small staff and other resources have been 
provided by international donors.  USAID has contributed 
roughly USD 25,000 to the CNA and the international donor 
community close to another USD 600,000.  The GOH's support 
has been limited to providing office space in a government 
building and one phone line.  (Comment:  Sadly, international 
donors have little to show for this investment.  End 
Comment.)  Maduro, and his Minister of the Presidency Luis 
Cosenza talked last year during a Transparency International 
country visit of increasing GOH funding for the CNA, but that 
never came to fruition. 
 
¶7. (SBU) International donor support for the CNA faltered due 
to the organization's inability to effect change and lack of 
a clear institutional mandate as the nation's leading 
anti-corruption entity.  Donors withheld future promises of 
financial support pending a reorganization of the CNA into an 
independent watch-dog organization managed by civil society. 
The GOH thwarted all civil society attempts at reorganization 
for over six months, preferring a plan to incorporate the CNA 
into the GOH, thus putting the organization under government 
control.  This deadlock contributed to recent speculation 
regarding the CNA's future.  (Comment: In ref B, Post 
highlighted the probable demise of the CNA if the donor 
community withdrew its support. End Comment). 
 
---------------------------------- 
CNA Not Alone In Being Ineffective 
---------------------------------- 
 
¶8. (C) In recent related public comments regarding the GOH's 
commitment to fighting corruption, Special Prosecutor for 
Corruption Soraya Morales, (who herself has received 
extensive training in the U.S. and whose office receives U.S. 
technical support) stated the GOH should close her office 
because of its ineffectiveness.  While Morales appears to be 
intent on bringing corruption cases to trial, she has 
privately confided to PolOff that her office's meager 
resources make it very difficult to effectively pursue cases. 
 She also indicated that her office does not receive 
sufficient support from top Public Ministry (PM) management, 
and in fact, at times is pressured by higher management to 
not pursue cases.  Apart from the challenges her office faces 
at the PM, Morales noted that even when the PM does move 
forward on corruption cases, they are inevitably thwarted by 
judicial interference or indifference. 
 
¶9. (SBU) To highlight the PM's ineffectiveness in prosecuting 
corruption cases, the Honduran press reports that in ten 
years of existence, the PM has only effectively prosecuted 
fifteen cases.  This statistic includes all corruption cases. 
 (Note: The GOH has not in recent memory convicted a single 
prominent individual on corruption charges, although a 
corrupt congressman was convicted on narcotrafficking 
charges.  End Note.)  Currently, the Special Prosecutors' 
office for corruption at the PM is staffed with 15 corruption 
prosecutors, of which four are specifically dedicated to 
financial crimes, plus 13 auditors.  These individuals are 
responsible for all corruption/fraud cases in Honduras, both 
public and private. 
 
----------------------------------- 
The Partisan Finger-Pointing Begins 
----------------------------------- 
¶10. (U) Honduras' first Attorney General, Liberal Party 
member Edmundo Orellana, who served under the Carlos Reina 
administration, also recently joined the fray.  In a 
September 17 interview with Honduran daily El Tiempo, 
Orellana castigated the GOH for its failure to combat 
corruption and questioned the GOH's true commitment to 
stemming corrupt practices.  In the interview, he highlighted 
Honduras' failure to be an original signator to the UN's 
anti-corruption convention (among the very few Latin American 
and Caribbean countries not to sign at the original signing 
ceremony), the GOH's unwillingness to fund the CNA, and the 
comments of other disgruntled GOH officials tasked with 
fighting corruption.  These indicators, Orellana claimed, 
send a signal to the international community as to where the 
GOH truly stands on combating corruption. 
 
¶11. (U) In defense of Maduro's administration, Minister of 
the Presidency Luis Cosenza noted to El Tiempo that the GOH 
had no obligation to fund the CNA and that the Maduro 
administration was working on a proposal to fund a 
reorganized council.  (Note:  As highlighted in paragraph 
seven, this GOH proposed reorganization would stymie the 
independence and effectiveness of the CNA.  There are also 
rumors a reorganized CNA might fall under the Public 
Ministry.  End Note.)  He stated it is the GOH's desire that 
the international community continue to support a reorganized 
CNA. 
 
--------------------------------------------- ----- 
Honduras' Commitment to Combat Corruption Doubtful 
--------------------------------------------- ----- 
 
¶12. (C) COMMENT: Post has commented extensively on the GOH's 
weak performance in combating corruption in Honduras and 
questioned the GOH's true commitment to doing so (refs A and 
B).  Recent troubles with the CNA and comments by 
disillusioned individuals directly involved in the fight 
against corruption illustrate how far Honduras still has to 
go. 
 
13 (C) COMMENT CONTINUED:  The Cardinal's pending resignation 
will certainly spark a media storm of public recrimination 
over who is responsible for the lagging fight against 
corruption in Honduras.  Post notes, however, there continues 
to exist broad-based support amongst the Honduran people for 
effective and more aggressive anti-corruption efforts.  As 
noted in ref B, if the GOH were to get serious about 
prosecuting a number of high-level, powerful, corrupt figures 
it would go a long way toward generating greater public 
support for government institutions and help break the 
current cycle of cynicism and despair about the inevitability 
of corruption in Honduras.  END COMMENT. 
Palmer