Financial irregularities during the Manuel Zelaya administration
Encyclopedia
Alleged Financial irregularities during the Manuel Zelaya administration received attention of many Hondurans.
In late 2008, Zelaya went as far as refusing to send Congress a budget, claiming that it was impossible to come up with numbers, even though the constitution required the president to provide budget. The alleged irregularities are currently being investigated by the post coup government.
One the early instances of alleged financial irregularities in the administration was a contract to resurface 94 miles of road from Tegucigalpa to Danli. The company was paid the full price of the contract, but it resurfaced only 50 kilometers.
Zelaya spent millions of dollars on consulting and professional costs without documentation.
A joint investigation by auditors in Honduras has so far identified alleged squandering of presidential expenses amounting to 123,025,613.63 lempiras.
was the best-documented case of embezzlement. Manuel Zelaya's nephew Marcelo Chimirri
is one of the suspects. The investigations were helped by evidence retrieved by the FBI. After the scandal was published in Honduran media, Chimirri sued the journalists. Renato Alvarez
was sentenced to 2 years and 8 months in prison.
(ALBA), an organization founded by Hugo Chávez
. The pro-ALBA "demonstration" took place on August 25, 2008. The beneficiaries included 38 individuals, union leaders, unions, and owners transport companies.
The constitution of Honduras
requires that the President files the budget by September 15. Zelaya refused. He claimed that it was impossible to come up with numbers. Julio Raudales, Zelaya’s former deputy minister, said the budgetary black hole cost the country some $400 million in funding. Cardinal Rodríguez criticized Zelaya for using public money to promote his plans instead of spending it on the poor. He said "We were good friends. But he changed drastically... It was Chávez."
On September 30, 2008 Zelaya issued emergency executive decree 46-A-2208, which authorized transfer of 30 million lempiras of public money to advertising of his fourth ballot box. Soon after he issued another emergency executive decree which is identical except that the money is transferred to his office.
Auditors later found documentation of 29 checks and total 29,995,887.62 lempiras. The expenses weren't well documented.The supposed advertisers paid no sales tax.
On June 24, Enrique Flores Lanza, Zelaya's chief of staff, withdrew millions of dollars from the Central Bank of Honduras
. The money was taken "to help the Ministry of the Presidency" and transported by car to Lanza's office. The suspected theft was captured by surveillance cameras.
In late 2008, Zelaya went as far as refusing to send Congress a budget, claiming that it was impossible to come up with numbers, even though the constitution required the president to provide budget. The alleged irregularities are currently being investigated by the post coup government.
Early presidency
At least 20 alleged corruption scandals came to light during his first year. By February 2007, his administration had prosecuted four cases, and three had been dismissed while the others were still being investigated.One the early instances of alleged financial irregularities in the administration was a contract to resurface 94 miles of road from Tegucigalpa to Danli. The company was paid the full price of the contract, but it resurfaced only 50 kilometers.
Zelaya spent millions of dollars on consulting and professional costs without documentation.
A joint investigation by auditors in Honduras has so far identified alleged squandering of presidential expenses amounting to 123,025,613.63 lempiras.
Corruption at Hondutel
HondutelHondutel
Hondutel , is Honduras' government owned telecommunications company.It has a monopoly on international calls...
was the best-documented case of embezzlement. Manuel Zelaya's nephew Marcelo Chimirri
Marcelo Chimirri
Marcelo Chimirri, a nephew of the deposed president of Honduras Manuel Zelaya, is a former General Manager of the state-owned telecom company Hondutel...
is one of the suspects. The investigations were helped by evidence retrieved by the FBI. After the scandal was published in Honduran media, Chimirri sued the journalists. Renato Alvarez
Renato Alvarez
Renato Álvarez Vásquez is a journalist from Honduras who reads the evening news on TN5. He has become news himself after being condemned to 2 years and 8 months in prison for announcing the story originally published in Mexico about a corruption known as grey traffic in the Empresa Hondureña de...
was sentenced to 2 years and 8 months in prison.
2008 Allegations
Zelaya allegedly earmarked 5.4 million lempiras on mobilizing supporters of the country's accession to the Bolivarian Alternative for the AmericasBolivarian Alternative for the Americas
The Bolivarian Alliance for the Peoples of Our America is an international cooperation organization based on the idea of social, political, and economic integration between the countries of Latin America and the Caribbean...
(ALBA), an organization founded by Hugo Chávez
Hugo Chávez
Hugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...
. The pro-ALBA "demonstration" took place on August 25, 2008. The beneficiaries included 38 individuals, union leaders, unions, and owners transport companies.
The constitution of Honduras
Constitution of Honduras
The Political Constitution of the Republic of Honduras was approved on 11 January 1982, published on 20 January 1982, amended by the National Congress of Honduras 26 times from 1984 to 2005, and 10 interpretations by Congress were made from 1982 to 2005. It is Honduras' twelfth constitution since...
requires that the President files the budget by September 15. Zelaya refused. He claimed that it was impossible to come up with numbers. Julio Raudales, Zelaya’s former deputy minister, said the budgetary black hole cost the country some $400 million in funding. Cardinal Rodríguez criticized Zelaya for using public money to promote his plans instead of spending it on the poor. He said "We were good friends. But he changed drastically... It was Chávez."
On September 30, 2008 Zelaya issued emergency executive decree 46-A-2208, which authorized transfer of 30 million lempiras of public money to advertising of his fourth ballot box. Soon after he issued another emergency executive decree which is identical except that the money is transferred to his office.
Auditors later found documentation of 29 checks and total 29,995,887.62 lempiras. The expenses weren't well documented.The supposed advertisers paid no sales tax.
2009 Allegations
On May 30, 2009, auditors found that Zelaya had directly spent more than 2 billion lempiras without competitive bidding.On June 24, Enrique Flores Lanza, Zelaya's chief of staff, withdrew millions of dollars from the Central Bank of Honduras
Central Bank of Honduras
The Central Bank of Honduras is the central bank of Honduras. The current president is Maria Elena Mondragón.On June 24, 2009, surveillance cameras captured how about $2 million in cash was withdrawn from the Central Bank and driven to the office of Enrique Flores Lanza, Manuel Zelaya's chief of...
. The money was taken "to help the Ministry of the Presidency" and transported by car to Lanza's office. The suspected theft was captured by surveillance cameras.