Monday, April 21, 2014

Public Prosecutor: ZEDEs Are Legal

It will come to no surprise to anyone keeping track of anything to do with model cities in Honduras that the Public Prosecutor's office has issued an opinion just before Easter finding that the law enabling the new Zonas Especiales de Desarrrollo y Empleo (ZEDE) is legal.  The position paper, requested by the Constitutional Branch of the Supreme Court came from the Office for Defense of the Constitution.

The Supreme Court admitted a case challenging the ZEDE law as unconstitutional because in order to pass it Congress changed some of the supposedly unchangeable articles of the Honduran constitution.  The argument is that Congress, in modifying Articles 294, 303, and 329 violated Article 374's provision that prohibits modification of Articles of the Constitution related to the territory and form of government of Honduras, the so called "stoney" articles.  The Constitutional changes  modify clauses that define the territory and form of government of Honduras.

On accepting the case, the court followed procedure in requesting a legal opinion from the Public Prosecutor's office.  It skipped over the step of asking Congress for its documentation, however, putting this appeal on a fast track.

The Public Prosecutor, Oscar Chinchilla was formerly a member of the Constitutional Branch of the Supreme Court and was the sole member of that branch to find the original Model Cities legislation constitutional.  His four fellow justices were summarily dismissed (illegally) by the same Honduran Congress that later appointed Chinchilla as Public Prosecutor.

Thus, the opinion in favor of the ZEDE law was never in doubt.


Tuesday, April 8, 2014

These Are Not The Pilots You're Looking For.....

As quickly as they came into custody yesterday, they left.  Yesterday Honduran authorities at Ramon Villeda Morales airport in San Pedro Sula arrested two Americans asserting they were the pilots of the Gulfstream jet allegedly abandoned on April 1 in Roatan.  Temporary held were Luis Felipe Parra, a naturalized US citizen born in Colombia, and US citizen Hector Manuel Guerra.  Guerra is a licensed pilot according to the FAA database, but Parra is not.

Both were released this morning, supposedly at the disposition of the Dirección de Lucha Contra el Narcotráfico (DLCN) of the Public Prosecutor's office, but both immediately boarded a flight to Miami and left the country.

Elvis Guzmán, spokesperson for the local Public Prosecutor's office stated that the two were released because all their paperwork was in order.  They had both the proper immigration stamps in their passports and had filed a valid flight plan with permission from the Honduran Civil Aviation Authority to land in Roatan.  In the flight plan they had even requested that the plane be allowed to remain at the airport for two weeks; hence it was never abandoned.  There were no indications the plane had been used to transport drugs.  Therefore there was no crime here and they had to let them go.

Apparently InterAirports, the company that has the concession to run four international airports in Honduras, was the one that complained that the jet might be abandoned.  Either they had no access to the flight plans, which seems unlikely, or they're just incompetent, which is much more likely. 

While responsible for airport security they let millions of dollars in drug money pass through security "undetected", including $7 million in cash carried in 6 suitcases by 4 individuals on a flight from Honduras to Panama.  Panamanian authorities detected the cash and arrested 3 of the 4 individuals traveling with the bags.  Interairports was either complicit in letting the cash leave the country, or more likely, wasn't actually screening luggage since that would have cost them money.

Honduran authorities still have offered no explanation as to why they repeatedly told the press that the pilots they were looking for were Mexican citizens named Erick Emanuel Mejia Montes and Darimel Guerrero Ríos.

Apparently nothing to see here, except incompetence.

Monday, April 7, 2014

Dead Man Flying

A nice older executive jet landed at Roatan airport in Honduras on Tuesday, April 1.  Honduran authorities reported that the pilots, Darimel Guerrero Ríos, and Eric Emanuel Mejia Montes walked out of the airport and never returned to the jet.  Honduran authorities didn't notice this for a few days, however.  The two pilots have reportedly disappeared, probably having left Honduras.

We might be able to clear that up for the Hondurans. 

Eric Emanuel Mejia Montes was reportedly killed the very next day,  April 2,  in Torres, Venezuela when the Venezuelan air force shot down a Cessna with Mexican registration.  Two burned bodies were found in the wreckage of the plane, and one of them was identified as Mejia Montes, apparently through his passport.   What we know is that on April 1, someone purporting to be Mejia Montes flew a jet into Roatan airport, and the very next day someone identified as the very same Mejia Montes was shot down and killed in a Cessna in Torres, Venezuela while supposedly running drugs.

The jet in Honduras may or may not be an American registered Gulfstream II with registration N707KD.  Early versions of the story said the plane had a Mexican registration and showed a picture of a jet with Mexican registration MTX-01 on the engine.  The Honduran press is often unreliable on details, often attaching unrelated pictures to articles.  That appears to be the case here.

Later versions of the story alleged an American registration and showed a picture of N707KD and reported that as the registration of the jet.  Furthermore, an El Heraldo story supported Mexican registration, but gives flight details and an aircraft description of N707KD in the text of this article.  The plane pictured parked at Roatan in this La Prensa article is clearly N707KD.  Everyone agrees the jet is a Gulfstream IISP with two engines.  This jet, according to the FAA, can haul up to 12,500 pounds of cargo, or carry up to 22 passengers.  This plane is 37 years old and still flying, and belongs to a company in Florida. 

According to FlightAware, N707KD last flew out of the US from a general aviation airport in Miami to Torreon, Coahuila, Mexico on March 8.  This is a similar flight profile to a similar Gulfstream abandoned in Roatan just over a year ago.  That plane, N951RK, was abandoned by its Mexican pilots on Roatan March 22, 2013, and later reclaimed by its American owners Aero Group, without problems.  It had tested positive for cocaine.

So who really flew the current Gulfstream jet to Roatan, from where, and why?  If it is the American registered jet, what, if anything, does the owner know about who rented it, and for how long? These are questions that the DEA doesn't ever seem to ask.  US planes continue to fuel the flow of drugs through Central America.

Wednesday, March 26, 2014

Hernández Packed Court Goes Political

The Honduran Supreme Court, or more properly, the Constitutional Branch of the Supreme Court, packed with National Party supporters while Juan Orlando Hernández was head of Congress, paid a dividend yesterday by issuing a blatantly political opinion, with no legal argument to back it up.

The case has its origins in the November, 2013 elections for Mayor of San Luis, Comayagua.  Leny Flores Suazo of the Liberal Party was running against Santos Iván Zelaya Chacón of the National Party. 

Both candidates declared themselves the winner, forcing the Tribunal Supremo Electoral (TSE) to recount the votes.  But recount in Honduras does not mean what you think it means.  A "recount" in Honduras entails just re-tallying the votes already recording on the tally sheets, not recounting each vote.  The Tribunal Supremo Electoral has maintained that this is the only recount mechanism allowed under its regulations. 

After the recount, the TSE declared the election a tie. 

The candidates then both voluntarily agreed to flip a coin, and whoever won the toss would assume office.  This procedure is called for under Honduran law, if both candidates voluntarily agree to it.  Leny Flores Suazo won the coin toss, and the TSE formally declared him the winner of the election.  He was given paperwork by the TSE naming him the winner.  He was sworn in to office on January 27, 2014.

More than a month later, the National Party candidate appealed to the TSE to declare the election null and void and call for a new election. 

After the TSE turned him down, he appealed to the Supreme Court alleging there was no transparency in the recount process. We tend to sympathize with Zelaya Chacón, because the "recount" is actually pointless, unless you believe a simple math error, rather than the original vote counting, is the problem. But it isn't particularly impenetrable: the TSE adds the numbers a second time.

The Constitutional Branch accepted the case, and following usual procedure solicited an opinion from the Public Prosecutor, Oscar Chinchilla. He is a former Supreme Court justice himself, and the only justice that Hernández kept in the Constitutional Branch when he replaced the other four. 

Despite these ties, Oscar Chinchilla actually concurred with the TSE, arguing that what it did was correct and in accordance with the Electoral Law and the Law of Political Parties, which called for the the coin toss in the case of a tie if both parties agreed to it. There is no dispute of their agreement to abide by the results of the coin toss.

The Constitutional Branch, however, unanimously rejected the Public Prosecutor's opinion and found against the TSE. 

They ruled that the TSE violated the transparency requirements by not immediately consulting the original ballots themselves, rather than the tally sheets, and this failure violated Zelaya Chacón's rights to due process even before the coin toss happened. 

They reportedly wrote, in part:
It is clear to this Constitutional Chamber that the Supreme Electoral Tribunal has violated the political rights of the complainant, adopting resolutions lacking sufficient motivation, lacking the accuracy of the procedure.

But this is where the train left the tracks.  Rather than order the TSE to reconsult the ballots, or to hold a new election for mayor if the original ballots were no longer available (which is likely), they wrote:
Because of all the reasons previously cited, the appeal placed by Mr. Eneas Portillo Cabrera for Mr. Santos Iván Zelaya Chacón, should be granted with the effect that it restores to him full possession and exercise of his political rights, in such a manner that he can exercise for the rest of the time allowed, the job of Mayor of the town of San Luis, department of Comayagua.

The court simply declared Zelaya Chacón the winner, with no constitutional or legal basis provided for such a ruling, and awarded him the election.

Flores Suazo is reported to have said:
So far, it looks like in Honduras, the Supreme Court imposes Mayors [on towns] and sets aside the resolutions of the Election Tribunal.

This is exactly what happened.  Neither every one's due process rights nor the people's votes to determine the outcome of the election were preserved by this ruling.  Why even bother to hold elections?

But that's not the end of this story.  Flores Suazo called on Mauricio Villeda, his party's head of its Congressional delegation.  He has received the unanimous support of the Liberal Party congressional delegation.  Villeda told the press:
The Liberal party was surprised and is angry by the legal decision handed down by the Constitutional Branch of the Supreme Court concerning the case of the Mayor of San Luis.  This election was a tie and was decided by a coin toss.  Afterwards the Constitutional Branch got involved; listen well to what I am saying:  concerning election law, where the highest authority is the Supreme Election Tribunal.   This has surprised us and we don't want a precedent like this to exist in Honduras.

When asked who might have pressured the court, Villeda said:
Possibly various people from the National Party because they have replaced a Liberal Party Mayor.  Sufficient corruption exists already in this National Party government for there to also be corruption in election business.  We must make it clean and only the social communications media can help...

Villeda went on to indicate that this will become an issue in the alliance in Congress between the National and Liberal parties, saying that what the Liberals enabled in Congress, they can just as easily make impossible by breaking the alliance.

The Liberal Party has indicated that once they have had time to study this decision, they will appeal it to the full Supreme Court, but in the meantime, that court has imposed a mayor who was not elected on San Luis, Comayagua, for political, not legal, reasons.

Wednesday, March 12, 2014

NGO Do-Over

Maybe it's not a good idea to try and purge non-governmental organizations like C-Libre and FIAN after all. 

It just might get you in trouble.

Today Juan Orlando Hernández met with representatives of several unnamed non-governmental organizations and his Minister of Human Rights, Justice, Government, and Decentralization, Rigoberto Chang Castillo. 

Afterward, a communique read by his chief of staff, Reinaldo Sanchez, ordered a review and restructuring of the Unidad de Registro y Seguimiento de Asociaciones Civiles (URSAC), the unit that just a few days ago tried to cancel the registration of 5,429 NGOs claiming deficiencies in their filings. 

The goal of the review and restructuring will be to have better control over the NGOs and to modernize the handling of NGO authorizations and the filing of required reports. 

The government also walked back the cancellation of those 5429 organizations, ordering a new review of each one's files.

Sanchez noted that the government was aware of the importance of the role played by civil society and the NGOs in strengthening Honduras's democracy and diminishing economic inequality.

Clearly, someone wasn't on the same page...

Oops!

Monday, March 10, 2014

Honduras to Seek $1 Billion in Loans, Visit IMF.

Wilfredo Cerrato, Honduras's Finance Minister, told the assembled press on March 7 that Honduras will seek to place $1 billion in bonds in the international market in 2015, and that he would head a delegation traveling to Washington, DC later this month to learn what conditions must be met for Honduras to re-establish a borrowing agreement with the IMF, which he also hopes will be in place sometime in 2015.

The Honduran press only covered one part of this story.  Can you guess which?

The international press primarily reported on the bonds story, though some did lead with the IMF trip. Cerrato told them the bond placement was specifically to convert short term high interest internal debt issued by the Honduran banks to long term, lower interest, international bonds.  Two year high-interest bonds will be replaced by 10 year lower interest bonds.

This kind of short term debt was largely shunned until Roberto Micheletti Bain, head of the post-coup de facto government, was forced to make deals with Honduran banks in 2009 because no international placement of bonds was possible after the coup. 

That use of Honduran banks, that benefits the upper class of Honduras which owns them, continued under Porfirio Lobo Sosa. So government debt payments went from $65.8 million per year in 2008, to a yearly debt payment of $789.6 million when Lobo Sosa left office in January 2014.

The Hernandez government projects that the 2014 debt payment will reach $930 million (!) with the borrowing it must do this year to balance the budget.

But that story is not being publicized by the Honduran press.

Instead, they chose to report only on the visit to the IMF to learn about the necessary conditions for arranging a new loan agreement.  Cerrato told the press that he projected a new agreement could be signed this coming April.  One wonders what that optimism is based on, since Honduras has not formally spoken to the IMF yet, and the Hernandez government has not  yet begun to achieve the financial goals they set for themselves.

Honduras successfully placed $1 billion in bonds in two sales in 2013, and the proceeds from those bonds were used to pay down some of the more egregious short term loans and finance the Lobo Sosa government deficit spending for 2013. With debt service reaching nearly $1 billion by the end of this year, the Hernandez government will find itself trapped continuing to seek external financing, if it wants to avoid an austerity budget even harsher than what seems to be in the works.

Sunday, March 9, 2014

NGO Purge

On his way out of the government, Áfrico Madrid, Interior Minister under Porfirio Lobo Sosa, saw the final step in a long-brewing confrontation in which he has been engaged.

That step? abolishing his opponents-- more than 10,000 NGOs.

Friday La Gaceta published a decree revoking the legal status of 5429 NGOs. The Unidad de Registro y Seguimiento de Asociaciones Civiles (URSAC), a part of the Interior Ministry, issued the decree that revokes the permission of these NGOs to operate.

This comes slightly more than a month after Madrid revoked the legal status of another 4800 NGOs in mid January.

Honduras reportedly had about 16,000 NGOs at the start of 2013. So altogether, these two decrees succeeded in abolishing more than half of the NGOs in the country.

That makes it a little harder to figure out who this campaign was really targeting and why.

We would remind readers that back in 2010, the Honduran Congress passed a law to define the characteristics of an evangelical Christian church, declared unconstitutional in 2012, that advanced Madrid's agenda to abolish evangelical churches he felt were "fringe" groups.

According to the decree published this week, the named institutions failed to comply in some way with a previous decree 770-A-2003 regulating NGOs, which gave a 30 day window for every NGO to supply an annual activities report, a financial report, indicate its officers, and so on.

What does the abolishment of these NGOs translate to, in practice?

They can no longer sign contracts or hold bank accounts.

They are ordered to liquidate any property and goods held, and donate the proceeds of that liquidation to a still extant NGO with a similar goal.

All Honduran banks and government agencies were notified of the loss of rights of these 5,429 NGOs.  In 30 days, their bank accounts will be frozen by the government, and any remaining assets seized.

This is not just a matter of eliminating a few small and inconsequential groups that were struggling.

Among the NGOs cancelled was the Asociación Comite por Libre Expresión (C-Libre), the most visible group monitoring press freedom in Honduras, composed of of journalists and others.

Hector Longino Becerra, president of the organization, said that the action against C-Libre was part of an attack on organizations that are critical of the government. Becerra said that all of C-Libre's paperwork with URSAC was complete and up to date, and he possessed the receipts to show the filing was done on time.

In the wake of the Friday publication of La Gaceta, Jorge Montes, head of URSAC, claimed Saturday that the NGOs still had 30 days to make things right and avoid cancellation.

That claim is hard to understand since the published law reportedly cancels the legal right to exist of the named NGOs. Montes claims that each NGO's legal representative will be notified in 30 days of the cancellation if, prior to that, their paperwork is not brought up to date.

He emphasized three kinds of reports that need to be filed: a report on activities; a financial report that indicates what money the group holds, where it came from, and where and how it will be spent, and where the NGO's assets are; and an up-to-date list of officers.

The Civil Society Group that advises the government is disturbed by all this and has requested a meeting with Rigoberto Chang Castillo, current Interior Minister, and thus the head of URSAC.

They stated:
It is the responsibility of the state to create an enabling environment for the functioning of civil society organizations and to keep watch over the unfettered right to free association.

Their point: the Honduran government isn't doing that when 62% of the country's legally established NGOs are disestablished by the government.

We couldn't agree more.