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Monday, January 27, 2003 Online Edition 4

Honduras searches for IMF accord

By IXCHEL GRANADA

TEGUCIGALPA — Honduras will attempt to convince the International Monetary Fund (IMF) to extend its deadline for reducing its fiscal deficit. The fiscal deficit is the primary obstacle that which stands in the way of a signed accord between the IMF and the Honduran government. National Congress reviewed remarks made by a delegation sent by the IMF

Central Bank representatives released statements to the press stating that the IMF has worked with the Honduran government and has made great efforts towards reducing the deficit and increasing average wages. However, IMF representatives insist that the time schedule allotted for the reduction is not enough to overcome the deficit involved.

The delegation, made up of directors hailing from Japan, France, England and Poland, were invited in order to present proposals with an aim to create an accord of financial assistance between the IMF and the Honduran government.

The visit is aimed at reaching conclusions and agreements among the international and national economic advisors from both sides of the table. Along with economic advisors, private businesses, civil society members and other cooperative organizations gathered together to create a vision and economic outlook for the future of the country.

The visiting delegates traveled from San Pedro Sula, the industrial capital, to Tegucigalpa, the political capital, to discuss conclusions with president Ricardo Maduro and members of congress. The delegates were particularly concerned with the middle class salary range and what that represents for the strength of the Honduran economy in years to come.

Congress members discussed the implications of reducing the fiscal deficit in a short amount of time. It would require a massive pay-cut in the majority of federal positions, literally overnight, stated one representative.

In November of 2001, another IMF mission advised government officials to alleviate financial woes by improving its average per capita income and decreasing foreign debt.

If Honduras does not receive a financial accord from the IMF, the fears are that it will become more difficult to continue to receive loans from other major financial institutions such as the World Bank. The World Bank is also more likely to detain the process whereby Honduras would be included in the Heavily Indebted Poor Countries Initiative (HIPC). The Initiative would alleviate one third of the external debt.



Tax the Nicaraguans the way they tax us, say Hondurans

Tax Nicaraguan products, rather than resolution from The Hague:

The Arnoldo Aleman administration in Nicaragua imposed import duties on Honduran products, a decision that has harmed the latter nation’s economy. The Honduran appeal has not yet been resolved by the International Court at The Hague. This has prompted a majority of the Honduran public to state that authorities should behave as the Nicaraguans and those duties on that country’s products upon entry. However, polling data also shows that large proportions of Hondurans are at the moment still hopeful of a decision from The Hague, or hoping that the Nicaraguan government will eliminate the tax.

Safety improves in general terms, large cities still a problem:

Even though stories about crime, assault and other acts of violence dominate the news in Honduras, the public has felt slightly safer in the past twelve months, since President Ricardo Maduro took office. However, it must be noted that this sense of confidence and safety has diminished during his tenure; in May 2002, half the adult population stated they felt “more relaxed and safe.” One year later, this proportion decreases 20 percentage points; those most negative are residents of Tegucigalpa and San Pedro Sula.

The results show that the Honduran people have grown accustomed to living in a climate of tension, fear, and a generalized lack of trust. This explains the fact that similar proportions of Hondurans agree that “crime is increasing,” “has stayed the same,” and “is decreasing.” It must be noted that several widely recognized kidnappings and notorious crimes occurred in the past six months, providing the public with information in this regard.

Crime has especially affected residents of San Pedro Sula, citizens with at least one year of university education, and those with lower incomes.

Ricardo Maduro’s Presidential job approval rating:

One year after taking office, President Ricardo Maduro seems to be getting the benefit of the doubt from Hondurans: a third of the population considers that his job performance as president has been “neither good nor poor.” This group still has hope in the future and may not yet be ready to pass judgment on the government.

Support for Maduro is more frequent in Tegucigalpa, San Pedro Sula and the rural areas, but not in cities with populations over ten thousand. Hondurans under 24 and those that have some university education are also satisfied with President Maduro’s performance.

According to the results of CID/Gallup’s latest opinion poll in Honduras, President Maduro registers a significant decrease in his approval ratings, reaching a net rating of zero, with a large proportion of the population claiming his performance has not been good nor poor. It is likely that the teachers’ strike, the country’s high crime figures, and the rising cost of basic goods -among other events- have taken their toll on Honduran public opinion.

From this point on, the handling of government policy will be delicate and crucial, because public opinion is evenly divided; a key event could tip the scales into either favorable or unfavorable areas.




 

U.S. Ambassador visits SETCO

TEGUCIGALPA – The Ambassador of the United States, Larry Palmer made a courtesy visit to the Minister of Technical and International Cooperation, (SETCO), Brenie Liliana Matute, this week with the purpose of learning about the cooperation activities the institution carries out and to reiterate the United States’ continued support of Honduras.

The minister said that the United States provides non-refundable cooperation to different social areas and the ambassador expressed interest in the continued strengthening of existing relations. Over the last four years, the northern country has been one of the most important donors to Honduras, with more than 450 million dollars.

“The United States provided enormous support after Hurricane Mitch and continues to participate in social projects within the framework of the poverty alleviation strategy, said the minister after meeting with the Ambassador and the director for the U.S. Agency for International Development, USAID, Raymond Waldron.
 
 

Protests in Siria against the extension of mining operations

One thousand inhabitants of the Siria Valley protested for more than six hours on Tuesday 21st of January. Men, women and children stood against the North American company “Entre Mares” who want to extend their operations in the area. Their operations are already causing a scarcity of water, and the cyanide used is producing many skin allergies. — LA TRIBUNA

Gangs kill soccer player Chocolate Flores

Chocolate Flores, the goal keeper for Espana, was shot early on Sunday morning. He was driving along one of the most notoriously dangerous streets in San Pedro Sula, when he was shot five times. He was with a women, presumed to be a prostitute, who has now disappeared. The police have captured at least 12 suspects. — EL HERALDO

Gang kills police woman

Varela Zaniga, 23, was found abused and naked in a trash bin in the Comayagüela on Sunday night. She had received at least four shot wounds in the thorax, and wounds caused by either a knife or machete. The police say that they have various suspects. — EL HERALDO

First case of Dengue hemorrhagic fever identified in 2003
On Tuesday 21st of January, the first case of Dengue hemorrhagic fever was confirmed in a minor. The authorities are keen to avoid a repeat of the outbreak in 2002, when there were over 900 cases reported. People are being advised to cover any exposed areas of water, as it is in these spaces that the culpable mosquito, Aedes egypti, reproduces. — LA TRIBUNA

District Attorney requests President of Congress letter of release be annulled

The District Attorney Milson Salgado has requested before the First Appeals Court that the letter of release granted to the president of the National Congress, Porfirio Lobo Sosa, be annulled.
Lobo Sosa was accused of misuse of public funds and abuse of authority. In 1992, when he held the office of manager of the Honduran Forestry Corporation (COHDEFOR), he gave Lps. 200 thousand to the National Congress at the request of then congressmen Carlos Kattan Salem. using the pretext of using the funds to reforest part of the capital city.

The D.A.’s officer investigated Lobo Sosa and Kattam Salem because the money was not used for the purpose they requested it for, and consequently disappeared from the congressional coffers.
On May 2, 2002, the Judge of Letters granted a letter of freedom to Lobo Sosa, due to lack of merits. However, on Wednesday, the D.A.’s office expressed inconformity with the judgement and petitioned the letter be annulled and Lobo Soso be submitted to a special trail with a Supreme Court Justice. – LA TRIBUNA

More than 100 million lempiras of organized crime funds frozen

The special District Attorney against Organized Crime, Mario Chinchilla revealed on Wednesday that in the last few months, his office has frozen bank accounts worth 35 million lempiras and other assets worth 75 million lempiras pertaining to illegal organizations involved in activities such as money laundering.
“Our office has been able in a short time to diminish the operating capacity of these organizations by limiting their access to money and other assets. Investigations into money laundering has proved positive because this activity is the financial base of organized criminals,” said the D.A.
Amongst assets seized were vehicles, apartments, buildings, land, and businesses. – LA TRIBUNA

Monday, January 20, 2003 Online Edition 3

Who is Commissioner Maria Luisa Jimenez de Borjas?

Maria Luisa Jimenez de Borjas was removed from her job with no formal explanation in December.

By ROBERT SPAIN

For a woman to scale the heights of the police force in any modern society is an accomplishment; for it all to come crashing down shows an accomplishment of sorts. While Honduras has a favorable record of women in powerful public positions, even when compared with first world western democracies like the United States, it still retains elements of corruption. As head of the Police’s Internal Affairs Department (IAD), Commissioner Maria Luisa Jimenez de Borjas must have known both these things, but cannot have imagined that this would lead to her losing her job - just for trying to carry it out in the first place.

On 19th June 2002, Commissioner Borjas received a written order to investigate the killings of the men alleged to have kidnapped and then murdered former minister and businessman Reginaldo Panting. The death of these men made their questioning impossible, in some way burying the story of the incidents and their role in it. Not entirely though.

Segments of the media had been pointing a finger at Officer Juan Carlos Bonilla in connection with the killings, and the IAD investigation soon discovered the involvement of officers from other units. Delving deeper, IAD followed trails to the cars and AK-47s used in the murders. On the day the District Attorney’s office inspected a police safe house in San Pedro Sula, these guns were sent to a decommissioning warehouse and their markings tampered with. According to Borjas, the U.S. embassy in Honduras complained about this search even taking place.

For reasons of security Commissioner Borjas stopped sharing her ongoing results with her seniors, and was asked to resign. On September 20, 2002 the minister of security told her he needed a confidant in her position.

Replying that she “came in through the front door and would go out through the front door,” attempts to move her to a different position were blocked by labor laws. In a different move, Conasin, an advisory group to the ministry of security, accused her of a “grave fault.” As the panel had no faculty to do this, this move was still illegal.

Commissioner Borjas has been on paid suspension since the 2nd of December 2002 under the Organic Law: National Police, article 14, clause 5, which lists a number of grounds for suspension. She has still not been told what she stands accused of.
 

Honduran and German governments subscribe new cooperation program

TEGUCIGALPA — A new financial and technical cooperation program worth approximately 27 million euros over the next two years, was subscribed to by the Minister of International and Technical Cooperation, SETCO.

The agreement was the result of new intergovernmental negotiations concerning financial and technical cooperation between the governments of Honduras and Germany held in the offices of SETCO from November 27 to 29, for which a German delegation arrived, headed by Mrs. Gudrun Gorsse Wiesman.

Both governments confirmed the following priority areas for German-Honduran cooperation for the 2002-2006 period: Basic education; protection and the sustainable management of natural resources; foment productive employment, en particular rural areas.

During the 2002/2003 period, Germany will provide a total of 27 million euros (equivalent to dollars) towards poverty alleviation and sustainable development in Honduras.

Of this amount, 22.5 million euros are donations and 4.5 euros line of credit at 75 percent, 40 years, including a 10-year grace period.

Among the nine Financial Cooperation projects, the Initial Formation of Teachers, the international co-financial basic education program “Education for All” stands out, as does the new Honduran Social Investment Fund (FHIS) program destined to decentralization and municipal development. Technical cooperation projects that will be extended include advisory services to the Ministry of Education, the Social Forestry Program, conservation of the Celaque Mountain National, conservation of the Rio Platano Biosphere Reserve and support of the Honduran Micro and Small Enterprise sector.

Outstanding details of the final act

The SETCO minister stated that part of the details of the Agreement made with the German government is supported by the Minister to the President in the implementation of the Poverty Reduction Strategy, which will continue the financial and technical cooperation modality.

One of the document’s important aspects is the establishment of trilateral cooperation between Germany, Honduras and Cuba for the health sector, regional projects that include the Mesoamerican Biological Corridor, fomenting sustainable tourism development in Central America, the strengthening of tax collection, support for AIDS programs and a micro credit program through the Central American Bank of Economic Integration.

“Despite significant financial support on the part of the Germans, their support goes beyond money, their participation is integrated in social, economic and cultural aspects,” said Matute.

SAG denies re-assignation of US$ 20 million for La Mosquitia

The Director of the National Local Development Program (PRONADEL), Ramon Chacon Ferrufino, a dependency of the Ministry of Agriculture, stated on Monday, that his institution possesses no document in which US$ 20 million were specifically assigned to the Mosquitia. In December, the Congressmen from the Department of Gracias a Dios, Olegario Lopez denounced the Ministry for deviating this amount to other departments. (HTW, 14/12/02).

Chacon said that this program was designed to meet financial needs of rural communities to carry out production investments and were not fixed amounts.

PRONADEL does have available US$57 million to meet the demands of 12 departments, in which 136 municipalities have been focal, including five in the Mosquitia area, said Chacon. For this reason, it is illogical to think that this amount is exclusive to that area, he said.

He also said that a lack of awareness exists concerning the origin of the institutions funding. The resources are provided by the International Agricultural Development Fund, the Central American Bank of Economic Integration, the United Nations Development Fund and the World Bank, as Lopez denounced.

Chacon also said that the change in government has not stopped the project, a situation that has been confused with a revision of PRONADEL requested from higher authorities to adjust the project to the new policies and strategies that the process of rural development requires.

Although SAG initiated PRONADEL in the Mosquitia at the end of 2001, it has not been possible to implement the project. Relationships with NGOs working in the region are being established, and information and diagnostics of the area are being compiled to work together and co-ordinate efforts with other private and public institutions. — LA TRIBUNA

Campesina indemnified five million for AIDS infected blood transfusion

The government of Honduras paid Maria Bersey, a campesina (farmer) from the department of Olancho after she was infected with AIDS during a blood transfusion she received in the Materno Infantil Public Hospital.

President Ricardo Maduro authorized government authorities to come to an out of court agreement after Bersey sued the government for 12 million lempiras. – EL HERALDO

 

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Monday, January 6, 2003 Online Edition 1

AES Corp and Lufussa win power bid in Honduras

By JONATHAN MARCIANO

TEGUCIGALPA — The Honduran subsidiary of U.S. energy firm AES Corp, and Honduran private sector company, Lufussa signed a 12-year contract to supply power to Honduras, the state energy company, announced on Monday.

Government-owned National Electrical Enterprise (ENEE), agreed a $477 million deal to buy 200 megawatts of electrical power from AES, the largest private electrical supplier in the world. Lufussa, meanwhile negotiated a $484 million, twelve-year thermal electrical package with the Honduran government, providing 210 megawatts of power.

The newly-arranged contracts followed ill-tempered disputes surrounding the previous bidding process. The Honduran government canceled a contract awarded in November to a Honduran company, Luz y Fuerza Sociedad Anonima (LUFUSA), after complaints that the bidding process leading to the contract was flawed. In this fresh round of negotiation, ENEE negotiated directly with AES, and Lufussa.

The United States embassy in Tegucigalpa was among the critics in the earlier bidding process. ENEE manager, Angelo Botazzi, speaking at a press conference, however denied that this had any impact on negotiations. “These purchases are not a product of pressure from any country. We are simply projecting demand and the country’s energy needs,” Botazzi said.

Botazzi said LUFUSA would generate the power in a bunker plant while AES would use liquid gas. Adolfo Facusse, President of ANDI, the Honduran national manufacturing association, suggested that the move may yet spark competition in a sector which for too long has been in “crisis.”

“We have long wanted to have stated what the electricity demand will be years in advance, and to allow private companies to sell directly to the consumer,” said Facusse.
“Previous crises such as the shortages in 1995, meant ENEE had to buy electricity on short-term delivery. Such contracts resulted in higher prices”, he added.

Honduras, this year consumed 800 megawatts of energy, 500 megawatts produced by the state and 300 megawatts by local private companies, though many are planning for an energy shortfall in the near future.

Both the AES contract and the LUFUSA contract begin in 2005 and will last for 12 years. AES, has previously announced plans to build in Honduras a 700-megawatt power plant, selling power to Guatemala, El Salvador and Honduras.

United States continues supporting the fight against drug trafficking

TEGUCIGALPA, M.D.C. — On Wednesday, December 18, the U.S. Ambassador, Larry Palmer and the Presidential Designate, Armida Lopez de Contreras signed a letter of intent for the amount of 12.7 million lempiras (US$750,00) to support the fight against drug trafficking.

Since September 2000 until now this program has received approximately two million dollars. These funds form part of the U.S. government’s international program - Narcotics and the Application of the Law - providing training and technical assistance to specialized personal from the Dog Squad, the Maritime Squad, and the Anti-narcotics Road Inspection Center in the south. This is alongside the Immigration Project, the National Council against Drug Trafficking, and the creation and training of the Border Police Force.

During the signing of the agreement, Ambassador Palmer said, “Our program supports and strengthens the efforts President Maduro is making to fight crime, drug trafficking and all types of international crime, thus offering citizens more security.”

He also said that under the leadership of the Presidential Designate, the National Council against Drug Trafficking would play an important role as a partner in international efforts to fight drug trafficking.

The program is a tangible symbol of cooperation between the United States and Honduras in the fight against international crime. The main purposes are drug interdiction, the fight against international terrorism, illegal immigration, money laundering and supporting border and port security. Programs for reducing and preventing the use of drugs by young people and drug rehabilitation are also supported.





 

Contra rocket from abandoned base kills child in Olancho

A rocket exploded in the South of Honduras on New Year’s Eve, killing a young child, reported Thursdays La Tribuna. The anti-aircraft rocket was from the abandoned El Aguacate Contra base and the incident took place in a small community 15km west of the town of Catacamas.

The victim, six year old Edgar Nahum Mejia Cuellar, had been with his mother making nacatamales on the stove of their home. The child’s mother was hit in the arms and legs by flying debris, and other family members received shrapnel wounds. The boy’s father, Raul Mejia Morales, described how the explosive device had been in the family’s yard for a long time, and that it was being used to wedge a pot on the stove on the assumption that it was simply a metal tube. “I went to cut some wood and when I got back... the object was hot and looked blue. I was going to take it off, but it was too late.” Police sub-Inspector Francisco Acevedo explained that the heat of the fire activated and detonated the explosive.

According to local residents, most houses in the area have at least one object like this; some have two or three. The former Contra base is reportedly full of similar items.

The explosion comes at a particularly embarrassing time for the Honduran government, which had pledged to free the country of landmines by the end of 2002 and had recently reported that this target was on track to be met. The incident highlights that mines are not the only dangerous remnant of Central America’s many civil wars. While there are figures and maps of where anti-personal and anti-vehicle mines were placed by both governmental and guerilla rebellious, there are no such accurate details for the amount of ammunition and explosives still hidden in the countryside.

The rocket, whose inscription was still visible on the side of the casing, was a Fuse Rocket, commonly used by guerilla forces to attack aircraft.

Gloves come off as new Honduran law bans videogame nasties

By JONATHAN MARCIANO

TEGUCIGALPA — From next June, best-selling computer game titles such as Resident Evil, Shadowman, Street Fighter, Turok, Perfect Dark, and Quake will be cleared from the shelves of retailers in Honduras, following a blanket ban on all violent videogames and toys.

The move comes in reaction to rising levels of violent crime in the country, much of which is blamed on youth gangs known as “maras”. The sale of such games and toys is said to normalize violence, whilst promoting imitation attacks by gang cells, say authorities.

The spiraling violence of Honduran gangs is a constant source of tension in the country. But those dealing with gangs at the coal-face, suggest deeper reasons for the acts of terror used by the delinquent population.

Bruce Harris, executive director of Latin American Programs at Casa Alianza, speaking to the Digital Freedom Network in December, said “the deportation of Latino gang members from the U.S. back to their countries of birth has helped to fuel an increase in gang activity.” Moreover, “children continue to turn to the streets for a new home and to gangs for a new family in Honduras”.

Referred to as maras or pandillas, Honduran street gangs engage in delinquency and sometimes in violent crimes. In actuality, according to Harris, only five percent of all crime has been committed by children under the age of 18, a mere two-tenths of a percent were murders.

Games outlets in Honduras have been granted a six-month grace period to remove stocks of the offending games from inventories. A spokesman from gamesindustry.biz, a leading games entertainment website commented: “Given that Honduras is one of the poorest countries in the western hemisphere, with 53 per cent of the population living under the poverty line, we’re really not sure how influential games and toys are in the criminal scene in the country.”