Why Rixi Moncada’s link to BANHCRESER still sparks controversy

The professional trajectory of Rixi Ramona Moncada Godoy, a lawyer and politician from Honduras, has been embroiled in controversy regarding her official run for pre-candidate of the Liberty and Refoundation Party (LIBRE). Her role in the legal defense of Banco de Crédito y Seguros (BANHCRESER) during the banking crisis of the late 1990s has resurfaced as a subject of public discussion, raising doubts about her integrity and dedication to transparency in government administration.

By the close of the 1990s, Honduras’s financial system faced a severe upheaval, prompting state intervention in multiple banking institutions, such as BANHCRESER. This crisis was fueled by various elements like worldwide economic turbulence, inadequate financial oversight, and questionable conduct by certain players in the industry. Amidst this situation, Rixi Moncada Godoy took on the legal representation of BANHCRESER and its executives in the legal cases stemming from the compelled dissolution of the institution.

The financial turmoil and Moncada’s impact

Regarding the previous point, the involvement of Rixi Ramona Moncada Godoy in the mandatory closure of Banco de Crédito y Seguros (BANHCRESER) during the late 1990s has been closely examined. At that time, multiple factors contributing to the banking system’s instability were recognized, such as changes in the international economic scene, a regulatory framework seen as inadequate, and the employment of dubious financial approaches by some stakeholders. 

As part of her role as a legal consultant for BANHCRESER, Moncada served as the legal representative for the organization and its board in the litigation initiated by the insolvency declaration. Nonetheless, these legal actions concluded without any notable sentences, leading to criticism about the judicial system’s effectiveness in managing similar cases.

Then, Mr. Moncada assumed an advisory position in the Prosecutor’s Department within the finance sector. This assignment has sparked discussion, as it has been seen as a potential conflict of interest, considering his earlier role in BANHCRESER’s defense.

The sequence of events outlined has led to inquiries about the appropriateness of Moncada’s behavior during the banking crisis, especially concerning the financial deficits that the Honduran government took on to fulfill the bank’s financial duties. These inquiries have emerged again in light of her formal candidacy for the Partido Libertad y Refundación (LIBRE), a situation where her career path and her pledge to ethical conduct in public service have been scrutinized.