Half A Million Dollars of Persuasion

The de facto regime of Roberto Micheletti Bain, and its friends, have spent slightly more than $590,307.69 in lobbying the United States goverment since June 28, 2009. That's a lot of persuasion.

$20,000 - The Honduran Association of Maquiladores hired The Cormac Group on 6/19 to lobby over US-Honduran relations. Partner John Slade and Mark Vogel worked on their behalf. On the registration form they indicate a payment of $8,000. They indicated on the termination report, filed 9/9, that they had been paid $20,000 to lobby the US House and Senate on US-Honduran relations.

So who is the Honduran Association of Maquiladores? Jesús Canahauti is its president. Danilo Canahuati is its past President. He is well known in Washington, D.C. because of having been called to testify before Congress on the labor and anti-union practices of the textile industry in Honduras. In 1995, reportedly tired of being called to Washington, D.C. he allowed the textile unions to form, with a tightly controlled mediation board to resolve all differences.

$8,000 - The Honduran Association of Maquiladores hired Vision America on 7/6 to have Roger Noriega and José Cardenas lobby for them to "support the efforts of the Honduran private sector to help consolidate the democratic transition in their country." Roger Noriega was US Permanent Representative to the OAS 2001-2003, and then was named as Assistant Secretary of State for Western Hemisphere Affairs where he served until 2005. The person who filled out the form for Vision America checked that there were no foreign entities involved. The amended registration of 8/3 did identify them as a foreign entity, and indicates an $8,000 payment. On 8/3 they also filed a second quarter lobbying report that indicates they received less than $5000 by 6/30/2009. This form indicates that they did lobby the US House, Senate, Department of State, and the National Security Council to again "support the efforts of the Honduran private sector to help consolidate the democratic transition in their country." Their third quarter/termination report, also filed on 8/3 indicates a total of $8,000 in income from the Association.

$210,000 - On 7/6 CEAL, the Consejo Empresarial de America, Capitulo Honduras hired the firm of Orrick, Herrington, & Suttcliffe LLP. to lobby using Lanny Davis, Adam Goldberg, and Eileen O'Connor. Lanny Davis was a special counsel to President Clinton, and Adam Goldberg was an assistant counsel in the same office. In its registration statement, Davis said that the firm was "providing facts relating to the removal of Mr. Zelaya." While in its termination filing, he said he was paid to lobby the House, Senate, and Department of State on "US policy regarding the removal of Mr. Zelaya from Honduras." He further noted, "CEAL, Grupo Financiero Ficohsa, and Organizacion Publicitaria, all identified on LD-1, support a peaceful and democratic resolution to the Honduran constitutional crisis."

CEAL in Honduras is headed by Camilo Atala Faraja. Other top officials of CEAL listed on the organizations website include Jesús Canahuati (vice president and head of Maquiladoras Association), Victoria Asfura (ex president of Banco Central of Honduras under President Maduro, ex member of Millenium Challenge Association - Honduras board of directors), and Miguel Mauricio Facusé Saenz (Dinant, Corp., uncle of former President Carlos Flores Facussé).

Interestingly CEAL didn't pay its own bills. The lobbying form lists the Grupo Ficohsa and Organizacion Publicitaria, S.A. as the two firms dividing the bill equally. Grupo Ficohsa consists of a bank, a financial services firm, a currency exchange, and an insurance company. When we look at the Grupo Ficohsa, not suprisingly we find that Camilo Atala Faraj is President. Camilo Atala Faraj is also one of the principal investors in the national World Cup soccer team. Organizacion Publicitaria, S.A. is the parent company of the newspaper, La Prensa, owned by Jorge Canahuati Larach.

$352,307.69 - On 9/18 the de facto government signed a lobbying contract with the firm Chlopak, Leonard, Schechter, and Associates for $292,307.69 for services, with an additional $10,000 for travel per-diem, a $20,000 for costs related to the development of a web site, and $30,000 for costs related to mobilizing and communication of experts in other key countries.

Sources in Honduras familiar with the contract indicate that it outlines 10 major goals for the firm:

1. Analyze international news coverage to understand current public opinion.
2. Conduct a public opinion survey.
3. Define, develop, and implement a communications plan for management of the political situation to permit the realization of the desired opinions.
4. Identify and train spokesmen for the de facto government.
5. Design and imlement a strategy for the pertinent communications.
6. Implement a messaging plan with leaders of public opinion.
7. Identify scenarios, actors, and their influence on public opinion, and their management in accord with the interests of the government of the Republic.
8. Implement a worldwide communications campaign.
9. Implement a positioning campaign to create a public climate open to the introduction of public proposals such as the elections of November.
10. Design a campaign to persuade international audiences, particularly the Congress and Senate of the US, the UN, and the Central American Integration System. Also form strategic alliances with foundations or organizations.

Interestingly, the contract cites an executive decree, PCM-M-011-2009, issued on the 8th of September, that exempts it from getting competitive bids for this contract. Payment, according to the contract, was divided into three payments, each with its own milestones. The contract runs until 12/31. It sets up an account in the Banco Central with the funding. The FARA registration form indicates that they lobbying firm interacts with Javier Caceres, chief of staff of Roberto Micheletti, while the contract itself is between Rafael Pineda Ponce, a Presidential Advisor, and Peter Schechter.


Tiempo reports that on September 23 Rafael Pineda Ponce issued an order to draw the initial contract payment , $131, 538.46 from that account. At the same time, another $132,000 (2.5 million lempiras) was drawn from the same account, for payment to ANDI. Is this a payment for further, as yet unrevealed lobbying expenses?

This small group of families, the Canahuatis, the Facussés, the Faraj, are a series of intermarried families that control much of Honduran business, and clearly are willing to spend a lot of money to keep their names shiny. A half million dollars buys a lot of polish.

(Lobbying data can be queried from the Senate Lobbying Database. )

COHEP Says Solition is Political

The President of COHEP, the Honduran Council of Private Businesses, Amilcar Bulnes, said yesterday that the resolution of the crisis in Honduras better be political, because judicial solutions have been exhausted. COHEP will support whatever decision the negotiators arrive at concerning the desititution of Manuel Zelaya. El Tiempo reports that this was his reaction to the Zelaya negotiator's proposal that the resititution of Zelaya be resolved by the National Congress.

Bulnes said that a resolution of the crisis is urgent; it is worsening the economic situation of the country. Because of that neither side should be intransigent.

Zelaya Proposal

http://www.laprensa.hn/var/laprensa_site/storage/original/image/f477af8c693f6594f2dbd403c95a3f6f.jpg

On the Recognition of the Powers of the State

We respectfully solicit the National Congress that, heading the opinions of the pertinent parts, including the Supreme Court, if you think it necessary, it give a decision corresponding to this point of the San Jose Accord, which says:

"6 On The Return of the Powers to their state prior to June 28.

To achieve reconciliation and strengthen democracy we ask the National Congress that, to effect the recovery of the integration and conformation of the Powers constituted on 28 June 2009, return the situation of the Executive Power, the Legislative Poer, the Judicial Power, and the Election Court to their state prior to 28 June, because they were formed following the articles 202, 205 paragraphs 9 and 11, and 236 of the constitution of the Republic of Honduras. The previous implies the return of José Manuel Zelaya Rosales to the Presidency of the Republic until the conclusion of his actual governing period, 27 January, 2010."

Micheletti Proposal

http://www.laprensa.hn/var/laprensa_site/storage/original/image/d29b5f6d555e2391c74d9267b9c7dcd3.jpg

Proposal of Micheletti
about the recognition of the powers of the state

To achieve national reconciliation and strengthen democracy we recognize the legitimacy of the powers constituted on the 28th of June, 2009: Legislative, Judicial, and the Election Court as having been formed according to articles 202, 205 number 9 and 11, of the constitution of the Republic. As for the pretence of citizen Jose Manuel Zelaya Rosales to return to the Presidency of the Republic, we condition our accord on the institutional criteria of the Supreme Court, as the entity charged constitutionally with the application of the law.

The foregoing implies that the opinion of the Judicial Power, will be applicable and considered obligatory by the parties involved in this dialogue.

For this proposition, we respectfully formulate a request to the Judicial power asking them to attend to the terms of the present accord.

Failure and A Public Proposal

( all times Tegucigalpa local time)
The talks broke down today without a resolution. El Tiempo reports that both negotiating teams left the hotel shortly after 4 pm Tegucigalpa time without talking to the gathered reporters, for consultations with Zelaya and Micheletti. There is no indication when, or if, talks will resume at this time, although both sides in their last public comments, indicated that talks would continue.

At about 5:30 pm, Victor Meza, on Radio Globo, called the proposal of Micheletti "absurd".Micheletti has proposed that the Supreme Court decide the issue of resititution. Zelaya decided to go public with his own suggested solution so that there is no confusion. He has suggested that Congress, not the Supreme Court, validate the agreement, including Zelaya's restitution. Everything should go back to the way it was before June 28. "Congress in the place to resolve political issues, not the courts," said Meza. "Once signed, the San Jose accord enters into effect immediately," Meza continued. Meza added that they expected the Micheletti delegation to reply today.

At 6 pm. Rafael Pineda Ponce, with Myrna Castro replied for the Micheletti delegation that the Executive could not reply for the Legal, and called for more dialogue. He maintained that the Supreme Court had jusidiction of this issue (restitution). The Supreme Court might pardon Zelaya, it might condem him. Pineda Ponce argued that the Supreme Court needed to complete the process it started hearing the case against Zelaya, and rule. Pineda Ponce refused to answer the question as to why Zelaya was exiled on June 28 if they wanted him to be tried.

6:42 pm: Vilma Morales: "more talk, not deadlines." Corales: "We need to talk into the weekend." Oh, and the Zelaya commission has until Monday to accept the Micheletti proposal because the Micheletti commission is going home for the weekend.

Final Proposal Being Floated

Radio Globo reports that the Micheletti delegation is making their final offer at this moment in the Hotel Clarion. Their 3 hour extension expires at 4 PM, Tegucigalpa time, about 40 minutes from now.

Missing Newspapers

Both the El Heraldo, and La Prensa newspaper websites have been unavailable since mid day yesterday with no explanation. Both of these papers are owned by Jorge Canahuati Larach, and support wholeheartedly the de facto government. Jorge Canahauti Larach, through his bank, FICOHSA, financed the hiring of Lanny Davis to lobby for the de facto government in the United States, information revealed in the Senate lobbyist registry database. While their websites are on separate servers, its often been the case that problems on one site manifest as problems on the other.