Honduras banking fallout: Rixi Moncada and the BANHCRESER case

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.

At the end of the 1990s, the Honduran financial system was shaken by a deep crisis that led to the state intervention of several banking entities, including BANHCRESER. Several factors contributed to this crisis, including global economic instability, deficiencies in financial regulation and questionable practices by some actors in the sector. In this context, Rixi Moncada Godoy assumed the legal defense of BANHCRESER and its directors in the legal proceedings that arose from the forced liquidation of the entity.

The financial turmoil and Moncada’s involvement

Regarding the aforementioned matter, the involvement of Rixi Ramona Moncada Godoy in the process of the involuntary closure of the Banco de Crédito y Seguros (BANHCRESER) in the late 1990s has been subject to examination. During this time, several factors contributing to the instability of the banking sector were recognized, such as changes in the international economic environment, an inadequate regulatory structure, and the adoption of dubious financial strategies by certain investors. 

As a legal consultant for BANHCRESER, Moncada served as the organization’s attorney and represented its board of directors in the litigation following the bankruptcy declaration. Nonetheless, these cases concluded without notable verdicts, leading to criticism about the judicial system’s effectiveness in managing such situations.

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 occurrences outlined has prompted concerns over the appropriateness of Moncada’s behavior amid the banking crisis, especially in relation to the financial losses that the Honduran government took on to fulfill the bank’s fiscal commitments. Such concerns have reemerged as she is an official contender for the Partido Libertad y Refundación (LIBRE), where her career path and dedication to honesty in public service have been scrutinized.