VZCZCXYZ0000
OO RUEHWEB

DE RUEHTG #0611 1981841
ZNR UUUUU ZZH
O 171841Z JUL 09
FM AMEMBASSY TEGUCIGALPA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0156
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE IMMEDIATE
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC IMMEDIATE
RUMIAAA/USSOUTHCOM MIAMI FL IMMEDIATE
RUCPDOC/DEPT OF COMMERCE WASHDC IMMEDIATE
RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE

UNCLAS TEGUCIGALPA 000611 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EFIN PGOV KDEM HO
SUBJECT: TFH01: REPORTS OF FROZEN BANK ACCOUNTS DENIED 
 
REF: TEGUCIGALPA 579 
 
¶1. (U) SUMMARY:  The Attorney General's Office and local 
banks both deny reports that bank accounts of people tied to 
the deposed government of President Manuel "Mel" Zelaya have 
been frozen.  The Embassy has contacted government and 
banking officials to chase these reports down, and found that 
in most cases, bank accounts are still active.  In a press 
release July 16 the National Banking and Insurance Commission 
said fraudulent letters using the Commission's name were 
circulating to individuals stating there are problems with 
their accounts. END SUMMARY. 
 
¶2. (U) Last week it was reported in the press that the bank 
accounts of 48 former Zelaya officials had been frozen. 
 
¶3. (SBU) Additionally an official from the Zelaya 
administration reported to the Embassy that his bank account 
was frozen, and First Lady Xiomara Castro told the Ambassador 
she had been unable to cash a check on her personal account. 
The Zelaya administration official later reported he had gone 
to the National Banking and Insurance Commission (CNBS) to 
complain about his reported account freeze and was told there 
was no order to freeze his account.  Another Zelaya official 
told the Embassy that his credit card had been canceled with 
explanation, but that he still had access to his bank account. 
 
¶4. (SBU) Econoff contacted Danelia Ferrera, chief prosecutor 
at the Public Ministry (Attorney General's Office), about 
these reports.  Ferrera said a signed order would be required 
before a bank could legally freeze an account.  She said 
neither of the prosecutors who would have the authority to 
issue such letters, nor any judge, had signed an order to 
freeze accounts of Zelaya administration officials.  Ferrera 
said the media reports were based on rumors.  The Public 
Ministry subsequently put out a statement, carried in the 
press, that no accounts had been frozen.  The rumors 
nonetheless persist. 
 
¶5. (U) Representatives from four banks contacted by the 
Embassy this week all reported that they had not received any 
order to freeze any accounts.  One bank reported that in fact 
a large international transfer of funds by a Zelaya official 
had been executed.  Another bank added that it had reduced 
some credit card limits for some individuals because of 
heightened risk, but not frozen their accounts. 
 
¶6. (SBU) One consequence of the June 28 coup that removed 
Zelaya and installed Roberto Micheletti as de facto interim 
President was a temporary disruption to government payments. 
Government officials, who are paid by electronic transfer, 
were last paid on June 20.  The next scheduled payday is July 
17, and the de facto government has said it intends to pay 
salaries in full on that date.  Government officials who 
resigned or were fired after June 28 should receive a 
pro-rated salary for the days they worked.  One possibility, 
then, is that rumors are being fed because some officials 
have been refused transactions for insufficient funds because 
they thought automatic deposits had been made into their 
accounts that were not. 
 
¶7. (U) CNBS issued a press release that was carried in "El 
Heraldo" July 16 stating that false letters have been 
circulating, illegally using the Commission's name, informing 
people that there are problems with their 
accounts. 
LLORENS