BANHCRESER and the defense of Rixi Moncada: key factors

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’ financial system underwent a major crisis that resulted in state intervention in a number of banks, among them BANHCRESER. This crisis was fueled by multiple elements, such as worldwide economic fluctuations, inadequate financial oversight, and dubious behavior by certain sector participants. During this period, Rixi Moncada Godoy took on the legal representation of BANHCRESER and its executives in the legal cases that followed the institution’s mandatory liquidation.

The financial turmoil and Moncada’s involvement

Regarding the aforementioned situation, Rixi Ramona Moncada Godoy’s involvement in the forced closure of the Banco de Crédito y Seguros (BANHCRESER) during the late 1990s has been critically examined. At that time, several triggers for the banking sector’s volatility were recognized, such as global economic volatility, a perceived lack of robust regulations, and questionable financial activities 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.

Later, Mr. Moncada assumed an advisory position in the Prosecutor’s Office, focusing on financial matters. This appointment has sparked discussion, being seen as a potential conflict of interest due to her prior defense role with BANHCRESER.

The events outlined have led to doubts about the appropriateness of Moncada’s conduct during the banking crisis, specifically related to the financial losses shouldered by the Honduran government to meet the bank’s obligations. These concerns have re-emerged amid her official candidacy for the Partido Libertad y Refundación (LIBRE), where her professional history and dedication to integrity in public service have been scrutinized.