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C O N F I D E N T I A L TEGUCIGALPA 000336 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 04/09/2018 
TAGS: PGOV KDEM EFIN ENRG HN
SUBJECT: PRESIDENT ZELAYA ASKS CONGRESS TO INVESTIGATE AND 
IMPEACH SUPREME COURT OVER "HOY NO CIRCULA" DECISION 
 
REF: TEGUCIGALPA 334 
 
Classified By: Ambassador Charles A. Ford, reasons 104. (B & D) 
 
¶1. (C) Summary.  President Manuel Zelaya attributes his 
electoral victory two years ago to his promise to contain 
energy prices and has subsidized fuel prices and electricity 
rates since he entered office.  The cost of those subsidies 
has become unsustainable.  In a poorly thought-out plan to 
reduce oil imports and foreign exchange losses without 
raising prices, he designed a program called "Hoy no Circula" 
(Don't Drive Today) which would force car owners to select 
one day a week on which they would not drive.  Public 
reaction was overwhelmingly negative, and five cases were 
filed with the Supreme Court alleging the plan interfered 
with a citizen's right to freely circulate within the 
territory.  Before the court could rule, Zelaya implemented 
the plan by executive decree and warned the court not to 
"politicize" their decision.  When the court ruled in favor 
of receiving the cases and suspended the measure on April 9, 
Zelaya blasted the court and the entire National Party, and 
asked the Congress to investigate and impeach the Supreme 
Court.  On April 10, the Chief Justice of the Supreme Court 
said she received death threats.  Although the President of 
Congress, through two confidantes, assured us the Congress 
would not form a committee or take action against the 
justices, these threats are still very concerning.  This is 
not just about restricting the circulation of vehicles but a 
much bigger battle by Zelaya and his people to perpetuate 
their power and ideas after he leaves office.  End Summary. 
 
Hoy No Circula 
--------------- 
¶2. (U) In late March, the Zelaya administration announced a 
plan termed "Hoy no Circula" (don't drive today) which would 
force car owners to select one day a week (other than Sunday) 
on which they would not drive and obtain a windshield sticker 
indicating that day.  According to the creators, the plan was 
designed to reduce oil imports and foreign exchange losses 
without either raising pump prices or devaluing the exchange 
rate. Subsides to keep pump prices from rising despite sharp 
increases in global oil prices (Honduras produces no oil), 
and electricity rates that do not cover the national 
electrical company's costs (70 percent of electricity is 
generated with fuel oil) are busting the budget.  The new IMF 
Standby Agreement requires the GOH to reduce these subsidies. 
 
Program Extremely Unpopular 
----------------------------- 
¶3. (SBU) Reaction to the announcement was visceral, as almost 
all segments of society were against it -- except the most 
poor, who do not own vehicles.  (Note: This poorest segment 
of society is one of the core constituencies of the Zelaya 
administration's leftist advisors known as the "Patricios." 
End Note.) Citizens complained because they paid taxes and 
felt a restriction violated their rights to free movement 
within the territory, and also complained that there were no 
viable, safe options for mass transit.  Many private citizens 
spoke out about the plan, such as a pregnant woman who said 
she feared for her baby's life if she were forced to ride 
public transportation.  National Party Mayor Ricardo Alvarez 
became one of the most visible spokespersons against the 
measure, organizing a campaign for all drivers to drive with 
their lights on April 4 (it was mildly successful), and 
opening an office that offered free legal services to those 
who were fined under the program (USD 36 for driving on an 
unauthorized day).  National Party Congressman Antonio Rivera 
threatened to file a motion in the Congress to stop the plan, 
but was not recognized by the President of Congress Roberto 
Micheletti even though he held his hand up for several hours 
requesting permission to speak.  Even Liberal Party Members 
of Congress expressed displeasure with the plan, most notably 
Jose Azcona Bocock, Micheletti's campaign manager, who also 
attempted to file a motion with in the Congress to have the 
measure thrown out.  In the end, five challenges were filed 
with the Supreme Court. 
 
Measure Enacted By Executive Decree 
----------------------------------- 
¶3. (C) Before the court ruled on these five cases, Zelaya 
 
decided to enact the measure by executive decree.  He even 
warned the court publicly that it should not "politicize" its 
decision in this case.  People began to report to the various 
offices to choose which day they would not drive and pick up 
their stickers.  (Note:  No one knows who actually produced 
these hundreds of thousands of stickers -- there was no 
public solicitation for bids.  The stickers simply showed up 
in the offices overnight, probably making the printer a hefty 
profit.  End note.)  Then on April 7, the program was 
officially inaugurated, with Minister of the Presidency 
Enrique Flores Lanza walking to work (with dozens of armed 
guards around him) in a symbolic show of solidarity.  Casual 
observation the first two days indicated compliance with the 
new rules was mixed, and the effect on traffic congestion was 
not noticeable.  If anything, congestion increased as police 
stopped vehicles to inspect stickers. 
 
Supreme Court Decision - and Zelaya's Reaction 
--------------------------------------------- - 
¶4. (U) On April 9, the Supreme Court announced in a mixed 
decision (nine in favor, six against) that of the five cases 
presented, four of them were in compliance with the 
requirements in order to be accepted for review.  The cases 
will go to the Constitutional Court to be considered, but in 
the meantime, the court suspended "Hoy no Circula" until a 
decision could be reached.  Zelaya immediately interrupted 
all local television broadcasts with a scathing denunciation 
of the court for its "political" decision and attacking the 
National Party repeatedly for its actions and attitude in 
general.  He also called for the Congress to "investigate" 
and "impeach" justices who he accused of having made a 
political decision in the case.  Subsequently, two Micheletti 
confidantes, Gabriela Nunez, Micheletti's vice presidential 
candidate, and Jose Saavedra, Liberal Party whip, both 
assured us that Micheletti would not form a committee and 
would not investigate the judges for misconduct.  Saavedra 
was confident that Micheletti could calm Zelaya down and 
convince him that attacking the independence of the court was 
not in anyone's interests. 
 
Supreme Court Chief Justice Receives Death Threats 
--------------------------------------------- ----- 
¶5. (C) On April 10, PolCouns spoke to Supreme Court Chief 
Justice Vilma Morales who tearfully described death threats 
she had received on her personal cell phone.  Morales also 
described the threatening phone call she had received from 
Zelaya prior to the issuance of a decision.  Morales went 
public later that evening, but kept a strong public face and 
continued to insist on the independence of the court and the 
separation of powers. 
 
Comment 
-------- 
¶6. (C) Zelaya has been under siege recently and his reaction 
has been to come out swinging.  He forcibly took over radio 
slots on the most popular stations (see REFTEL), and took 
over television broadcasts to issue threats against the 
Supreme Court.  He will probably use the suspension of the 
"Hoy no Circula" program to finally remove the unrealistic 
and unsustainable fuel subsidies, raise prices on gasoline 
and electricity, and blame it on the National Party.  This 
whole predicament, however, is not just about a measure to 
keep cars off the road one day a week.  It is about Zelaya 
and his "Patricios" plan to implement their populist ideas 
and ensure their longevity after Zelaya leaves office.  To 
perpetuate their power and their ideas, Zelaya has 
disregarded his personal dislike for Micheletti and joined up 
with him publicly in a political alliance.  Gabriela Nunez 
told us that internal party numbers showed Micheletti with an 
abysmal 16 percent, trailing both Eduardo Maldonado with 20 
percent and current Vice President Elvin Santos with 21 
percent.  Nunez said that their only hope of victory in the 
primaries was to join forces with Zelaya.  This alliance 
brings the Liberal Party presidency and some of the poorest 
bases, but in exchange, Micheletti has allegedly given up 
major positions to Zelaya's "Patricios."  What is most 
concerning, however, in this entire scenario are the threats 
made by Zelaya both directly and indirectly against the 
Supreme Court.  Although Micheletti, through Nunez and 
Saavedra, has assured us that the Congress will not form a 
 
committee nor take any action against the justices, control 
over the court, both current and subsequent, is all-important 
for this power-hungry political class.  Micheletti believes 
he will be able to calm Zelaya's ire but we fully expect 
future attacks against this institution.  End Comment. 
Ford