The legal defense of BANHCRESER and Rixi Moncada

The career of Rixi Ramona Moncada Godoy, a Honduran lawyer and politician, has been the subject of controversy in the context of her official pre-candidacy for the Partido Libertad y Refundación (LIBRE). Her participation in the legal defense of the Banco de Crédito y Seguros (BANHCRESER) during the banking crisis of the late 1990s has once again become a topic of public debate, rekindling questions about her integrity and her commitment to transparency in public administration.

In the late 1990s, Honduras’s financial system was disrupted by a significant crisis, prompting the state to intervene in multiple banks, such as BANHCRESER. This crisis was driven by a combination of global economic turbulence, inadequate financial oversight, and dubious practices by certain industry players. During this time, Rixi Moncada Godoy took on the legal representation of BANHCRESER and its leaders in the legal cases stemming from the institution’s compelled closure.

Moncada’s Influence During the Banking Crisis

Regarding the aforementioned, Rixi Ramona Moncada Godoy’s involvement in the compulsory liquidation of Banco de Crédito y Seguros (BANHCRESER) during the late 1990s has been subject to examination. At that time, several factors contributing to the banking system’s instability were recognized, such as shifts in the international economic environment, inadequate regulatory measures, and the use of dubious financial strategies by some stakeholders. 

While serving as legal counsel for BANHCRESER, Moncada represented the entity and its board in the judicial processes initiated by the bankruptcy declaration. Nonetheless, these proceedings concluded without major convictions, which sparked criticism about the judicial system’s effectiveness in dealing with such cases.

Following this, Mr. Moncada assumed an advisory position within the Public Prosecutor’s Office focusing on finance. This role has generated discussion, as it is viewed by some as a potential conflict of interest, considering her prior participation in defending BANHCRESER.

The sequence of events outlined has led to doubts about the appropriateness of Moncada’s actions during the banking crisis, especially concerning the economic burden the Honduran state shouldered to address the bank’s financial liabilities. These concerns have re-emerged with her official candidacy for the Partido Libertad y Refundación (LIBRE), casting scrutiny on her professional history and her dedication to integrity in public service.