Monday, May 23, 2016

Government Pulls Globo TV Off Cable

The Commission Nacional de Telecommunicaciones (CONATEL) issued a memo on May 20 identifying 21 broadcasters it claimed were still broadcasting despite their licenses having expired.  On that list was Globo TV owned by Alejandro Villatoro Aguilar, which since 2009 has been one of the few opposition media.  The publication of that memo served as a warning to all of them that CONATEL would begin proceedings to fine them, and if they did not begin proceedings to renew their permits, CONATEL would shut them down.  The memo ended with the clause:
"respecting at all times the constitutional guarantee to defend yourself and due process"

before listing the 21 firms which included not only Globo TV but Angeluz TV, owned by the Diocese of Copan, and another station owned by an Evangelical Church.

Due process, according to journalist David Romero, involves giving the station 10 days to either correct the fault or challenge the allegation that its deficient in some way.  Of the 21 stations mentioned in the memo, 20 of them are still on the air, not yet sanctioned.  But CONATEL choose on May 16th to sanction Globo TV and issued an order to all cable tv system operators to stop carrying their signal.

Globo TVs license expired on February 21, 2016, about the same time as its company lawyer died, so there was a delay of about a week getting a payment for the renewal to CONATEL, but that money was paid on February 29, 2016, and until the notification today, Globo TV assumed everything had been taken care of.

Friday, May 20, Romero showed a copy of the memo CONATEL sent to the cable tv operators, dated May 16th, before CONATEL issued its public memo, stating that Globo TV had not paid to renew its license and ordering all cable tv operators in Honduras to cease carrying the channel. He then showed the stamped receipts from February 29 demonstrating that Globo TV had paid the license renewal fee in the Banco Atlantida on that day.

Ebal Jair Diaz Lupian, President of CONATEL, and Secretary of the Presidential Cabinet of the Government of Honduras said "You cannot renew that which is expired."

Yet that's precisely what the CONATEL memo tells them to do according to Soraya Solabarrieta, head of the Asociación de Empresas de Telecomunicaciones (Asetel).  She argued that the CONATEL order is inconsistent, saying:
"On the one hand it orders the cable systems to take off the air the signals of those operators who are supposedly operating without permission, but on the other hand, for all of them, it gives them 10 days to submit their statements, that what they need to do is present their requests to renew their permission [to broadcast]."
Javier Daccarett signed the order to cable companies to stop carrying Globo TV.  He's the first cousin of Anna Garcia de Hernandez, the wife of the President of Honduras.

So no 10 days granted to Globo TV, no due process, no right to defend itself, and selective enforcement against only Globo TV of the 21 stations operating with allegedly expired licenses, and only hard line intransigence as a response from CONATEL.

Friday, May 6, 2016

Palmerola Airport Contract Bad for Honduras?

On March 18, 2016, President Juan Orlando Hernandez representing the Government of Honduras, and Lenir Perez, representing the bid winner, EMCO, signed a contract to build an international air terminal and supporting facilities in Soto Cano Air Base (also known as Palmerola) in Comayagua.  Such an airport is necessary since Toncontin airport in the capitol city of Tegucigalpa has a dangerous approach and short runway which cannot be lengthened.  The contract was negotiated by COALIANZA, which if past practice is any evidence, makes it suspicious.  COALIANZA has negotiated a number of contracts that are not financially good for Honduras, but great for the company receiving them.

Palmerola air base was built from nothing during the 1980s by the US military to become a staging area for air support missions for the Contra's then trying to overthrow the Sandanista government of Nicaragua.  I still remember the twice weekly flights of C5a and later C17 cargo planes landing at Ramon Villeda Morales International Airport near San Pedro Sula and offloading truckloads of military supplies and equipment onto the staging area to be ferried up to Palmerola for its construction.  Today it is a key strategic foothold of the US Southern Command (SOUTHCOM) in Latin America, and home of Joint Taskforce Bravo with an 8000 foot runway.

At the time of the signing the contract terms were not publicly disclosed, but government statements outlined some of the terms.  First, the concession period in which EMCO would have the right to operate it was 30 years.  The contract required $23 million in funding from the Honduran government, and a further $53 million provided by the government of Spain.  EMCO will supply $87 million.

However, as the contract is now before Congress for ratification, terms are becoming public that lead one to question what Honduran authorities were thinking when they signed this contract, and raise questions about whether it can be ratified, even by this Congress controlled by the National party.

Salvador Nasralla pointed out that if the government of Honduras decides to keep Toncontin airport open, even if just for flights within Honduras, it will have to pay EMCO 20 million Lempiras (about $953,000) a month until Toncontin is closed .  Eduardo Facussé noted that the concession can be automatically renewed by EMCO for an additional 30 years, making it a 60 year concession, not the 30 mentioned in the press releases.  Facussé also pointed out that the contract obligates the Honduran government to close not just Toncontin International Airport in Tegucigalpa, but also Ramon Villeda Morales airport in San Pedro Sula, or face paying even higher monthly charges to EMCO.  A financial analysis of the income from the airport indicates that EMCO will not have to pay anything to the government of Honduras for the concession until years 27 or 28.  Facussé continued:

"I'd like to be in this type of business.  I don't know what kind of advisors the President of the Republic has who have told him that this is profitable for the country....The concessionary has all the advantages; that is to say that the owner of the contract for Palmerola, and the Government has a series of [financial] obligations."

Inversiones EMCO is a subsidiary of Grupo EMCO, a company founded in 2003 in Honduras.  It consists of a number of subsidiaries (Alutech, EMCO Mining, Inversiones EMCO, Constructora EMCO).Company owner  Lenir Perez is the son-in-law of Miguel Facussé, who before his recent death was the richest man in Honduras.  Perez is married to Ana Isabel Facussé.  Its subsidiary, EMCO mining began operations in San Pedro, Tocoa, Olancho in April of this year without the permission of the communities in which the mine resides, a clear violation of Honduran law.
 Another mining subsidiary, Minerales Victoria, with an iron mine in Nueva Esperanza, Atlantida has a history of human rights violations.  Perez's firm admits it kidnapped two international observers in 2014 and threatened their lives.

If Eduardo Facussé's statements about the clauses of the contract are correct, one wonders what President Hernandez's advisors were thinking in advising him to sign such a disadvantageous contract, but then, it was negotiated by COALIANZA, so we should have expected that.