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Section 1. Respect for the Integrity of the Person, Including Freedom from:

Section 4. Corruption and Lack of Transparency in Government

The law provides for criminal penalties for corruption by officials, but authorities did not implement the law effectively, and officials frequently engaged in corrupt practices with impunity. There were numerous reports of government corruption during the year. The government took steps to address corruption at high levels in government agencies, including arresting and charging members of congress, judges, prosecutors, current and former senior officials, mayors and other local authorities, and police officers. The quasi-governmental National Anticorruption Council had an investigative unit of 15 persons. The council receives government funding, which obliges it to disclose the names of its investigators, making them vulnerable to reprisals. Council staff reported credible personal threats and attempts at intimidation. NGOs said that some individuals who reported public corruption also received threats.

The MACCIH began operations in the country in April 2016 with a mandate to prevent and combat corruption, reform the criminal justice system, reform aspects of the political and elections legal framework, and improve public security.

Corruption: Prosecutions of public-sector corruption predominantly targeted low-level officials and focused on charges of abuse of authority and misconduct in public office, which were easier to prove but carried lower penalties than illicit enrichment, fraud, and money laundering. There were reports that the government’s anticorruption institutions did not take sufficient steps to contain high-level corruption and were unwilling or lacked the professional capacity and resources to investigate, arrest, and prosecute those involved. On September 11, new anticorruption courts staffed with 11 judges and magistrates began operating in Tegucigalpa and San Pedro Sula. In May 2016 the Supreme Court ordered the creation of these special courts in order to investigate crimes including corruption, bribery, misuse of public office, misappropriation of public funds, and falsification of documents. Funded by the security tax, the courts were initially provided an approximately 6.5 million lempira ($275,000) budget, and in January judges were selected by a commission that included representatives from the NGO Association for a Better Society and the MACCIH.

On June 19, a tribunal of judges returned guilty verdicts against five former public officials for using shell companies to divert more than 290 million lempiras ($12.3 million) from the Social Security Institute. The tribunal also found defendant Mario Zelaya Rojas, the former director of the institute, guilty on charges of abuse of authority and fraud, and defendants Jose Ramon Bertetty and Vivian Melissa Juarez Fiallos guilty of violation of duties of public officials and fraud. This was the fourth conviction obtained by the Public Ministry against Zelaya and brought total convictions obtained in the case to 15. One of the convictions against Zelaya resulted in a sentence of 15 years’ imprisonment, the longest on corruption charges for a former public official in the history of the country.

On July 13, the MACCIH announced the start of an investigation into the private energy company Desarrollos Energeticos, SA (DESA), partially owned by the Atala family. Civil society long maintained that DESA, parent company of the controversial Agua Zarca hydroelectric plant, had ties to the killing of environmental activist Berta Caceres and that government corruption contributed to the climate of impunity surrounding her death. One DESA employee and one former DESA employee were among eight suspects being prosecuted for her killing.

Financial Disclosure: Public officials are subject to financial disclosure laws but did not always comply. The law mandates that the Supreme Auditing Tribunal monitor and verify disclosures. The tribunal published its reports on its website and published the names of public officials who did not comply with disclosure laws. In January the congress passed a Campaign Finance Law that created a Financing, Transparency, and Accountability Unit to improve political campaign fiscal transparency. On May 30, the congress elected and swore in three magistrates to oversee the unit, which falls under the purview of the Supreme Electoral Tribunal. The new law and unit require political candidates and parties to open bank accounts and report all expenditures in an effort to increase transparency for elected government officials.

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The Lessons of 1989: Freedom and Our Future