Corruption

Honduras's Court of Appeals confirmed the definitive dismissal of former president Porfirio Lobo in the Pandora II graft case, while the prosecution of former president Juan Orlando Hernández in the same matter continues.

A judge postponed the initial hearing against former INAMI director Ninfa Flores and three co-defendants accused of fraud and abuse of authority to July 28, at the defense's request pending submission of evidence.

Former anti-corruption unit chief Luis Javier Santos says the Superior Court of Accounts issued clearance documents that accused officials used to avoid criminal prosecution, calling the institution a politically controlled body that served to shield the corrupt rather than hold them accountable.

The Tegucigalpa municipal administration hired 42 new advisers between February and May 2026, bringing its adviser roster to 110 and adding 2.2 million lempiras (about $88,000) monthly to the payroll, despite Mayor Juan Diego Zelaya's campaign promise to reduce staff.

Authorities are investigating former government officials over an alleged 92 million lempira (about $3.7 million) shortfall, as the Association for a More Just Society (ASJ) warns that Honduras remains among the region's most corruption-affected countries.

An El Heraldo investigation found that products sold in the Támara National Penitentiary commissaries cost significantly more than market prices—in some cases double—with sugar at L40 per pound versus L14 nationally, and the Conadeh has received 12 complaints from inmates about pricing.

Honduras's audit court referred only four illicit-enrichment cases to prosecutors between 2019 and 2025, involving former officials from the social security institute, social investment fund, and two municipalities, with alleged unjustified wealth gains totaling L92.4 million (about $3.7 million).

National Police Director Rigoberto Oseguera Mass has reinstated officers previously removed by a 2016–2018 purge, including Francisco Javier Leiva Gamoneda, accused in a 2016 investigation of involvement in the 2009 killing of a drug-enforcement director, and Jorge Alberto Barralaga Hernández, convicted of money laundering in 2021.

Honduras's accounting tribunal will investigate L15.9 million (about $636,000) paid for two presidential meeting rooms at the Supreme Court during Rebeca Raquel Obando's tenure, after a failed public bid, a closed private bidding, and cost overruns of nearly L3 million above the original contract.

Marvin Ponce alleged Wednesday that five Liberal Party members of Congress are demanding bribes in exchange for votes on energy reforms aimed at reducing electricity theft and restructuring the state utility into three separate entities.

Francia Medina, a former prosecutor found guilty of stealing more than 88 million lempiras (about $3.5 million) held as evidence in Central Bank vaults, had her sentencing hearing postponed.

A payroll review shows at least seven officials with family or close ties to BANADESA president Héctor Vidal Cerrato Zelaya were hired recently in key roles, earning a combined 462,316 lempiras (about $18,500) monthly, prompting nepotism allegations amid farmer complaints about financing access.

The Public Ministry filed pretrial charges against former Congress president Luis Redondo and 11 former members of the dissolved Permanent Commission on six counts.

The Public Prosecutor's Office secured a new conviction against former officials and business people for large-scale fraud in the '14 Contracts' case involving the Honduran Social Security Institute (IHSS).

Ninfa Flores, the former head of Honduras's National Institute of Migrant Workers (INAMI), appeared in court in Tegucigalpa for an initial hearing on charges of fraud and abuse of authority for alleged omissions that harmed the public administration.

Ninfa Flores Castellanos, who directed the National Institute for Juvenile Offenders from 2023 to 2024, appeared in court on charges of fraud and abuse of authority; a judge set an initial hearing for July 20 to determine whether sufficient evidence exists to proceed with trial.

An analysis of Honduras's migrant reintegration program found 581 beneficiaries and over L1.5 million (about $60,000) in payments listed in detailed records but not reflected in official summaries, raising questions about accountability in the L104.3 million fund distributed since January 2025.

Congress passed first reading of a transparency bill requiring companies and trusts to disclose their beneficial owners, aiming to meet international anti-money-laundering standards and keep Honduras off the Financial Action Task Force's gray list.

A judge issued a provisional dismissal for Steve Fajardo, identified as the son-in-law of Roberto Contreras.

Lawsuits filed by former municipal employees have resulted in garnishments exceeding 950 million lempiras against 13 municipalities in Olancho, Choluteca, and surrounding departments, freezing 40% or more of central government transfers to affected towns; a Liberal congressman is among the lawyers bringing cases.

The National Congress has failed to respond to transparency requests for information on institutional advertising spending, deputy travel allowances, and legislative social programs, violating the 10-business-day legal deadline.

A June 2026 survey by Data Veritas and Radio Cadena Voces found that 64.1% of Hondurans believe the country is heading in the wrong direction, with corruption named as the leading national problem, while 74.6% disapprove of President Asfura's administration.

The Association for a More Just Society (ASJ) reported that over L113 million (approximately $4.5 million USD) in state funds were transferred to a nonprofit during the previous administration through contracts that allegedly bypassed public-bidding requirements, with 90% of the agreements operating outside legal frameworks.

VIP taxi and ride-hailing drivers in Honduras suspect that transport official Blas Ramos, the governor of Francisco Morazán, is orchestrating a crackdown that has seized about 40 vehicles since early June, leaving drivers unable to work and facing fines of L11,000–L14,000 (roughly $440–$560) plus six months of impound fees.

Luis Arturo Avilés Moncada and Aracely O'hara Guillén, former Central Bank of Honduras officials, voluntarily appeared before a national criminal court and were released under conditions — including periodic check-ins and a travel ban — pending an initial hearing scheduled for June 18 on charges of reckless misappropriation of public funds.

Francisco Cosenza, former director of Honduras's security-funding agency, was sentenced to five years of home confinement with electronic monitoring by a Miami federal judge after admitting to financial transactions involving proceeds from criminal activity.

Francisco Cosenza, former director of Honduras's Security Tax Fund, was sentenced by a US court to five years of home confinement probation after pleading guilty to money laundering and bribery charges related to the misuse of public security funds.

Ninfa Suyapa Flores, the former director of Honduras's juvenile detention institute, appeared in court for her arraignment hearing on charges related to her tenure at the agency.

Francisco Cosenza, former director of Honduras's Security Tax (Tasa de Seguridad), was sentenced in Miami to five years of home detention after pleading guilty to money laundering and bribery charges tied to over $10 million in padded police uniform and supply contracts.

Honduras's Central Bank said it respects ongoing investigations after prosecutors charged current and former employees with 100 counts of negligent embezzlement tied to a multimillion-lempira theft, with arrests made in Choluteca, Francisco Morazán, and Cortés.