Financial Crime World

Transportation Industry Booms in Honduras, Generating Huge Profits

The transportation industry in Honduras has been booming, with criminal organizations and street gangs generating massive profits from illicit activities such as drug trafficking, extortion, kidnapping, and human smuggling.

The Lucrative Nature of the Transportation Industry

According to a recent report, the transportation industry in Honduras is valued at between $600 million and $750 million per year, or around 3-4% of the country’s GDP. The competition for these criminal markets is intense, leading to violent conflicts between rival groups. Gangs have been known to eliminate rivals and deploy corrupt security officials to further their interests.

Illicit Activities

  • Drug trafficking: Estimated price of moving cocaine through the region is around $2,000 to $2,500 per kilo.
  • Extortion: Criminal organizations extort money from businesses and individuals.
  • Kidnapping: Kidnappings are used as a means of extortion or for ransom.
  • Human smuggling: Smuggling people across borders.

Political Connections

The report highlights the close relationships between criminal organizations and political actors in Honduras. Many politicians have been accused of having connections to these groups, including former congressman Félix Cerna Salgado, who admitted to having a close relationship with notorious drug lord Matta Ballesteros.

Key Players

  • Chepe Luna: A notorious drug trafficker who operated his network from San Pedro Sula until he was assassinated in 2014.
  • José Miguel “Chepe” Handal Pérez: A drug trafficker who was captured in March 2015 after being added to the US Treasury’s “Kingpin List”.
  • Francisco Zelaya Fúnez: A construction company owner who had connections to high-level government officials and was captured in Mexico in 2013.
  • The Valle Valle family: A powerful criminal organization that was captured and extradited to the US in 2014.

Timeline

  • 1987: Congressman Félix Cerna Salgado admits to having a close relationship with Matta Ballesteros.
  • Early 2000s: Mexican criminal organizations establish control over drug distribution, using Central America as their primary bridge.
  • 2013: Francisco Zelaya Fúnez is captured in Mexico and José Miguel “Chepe” Handal Pérez is added to the US Treasury’s “Kingpin List”.
  • 2014: The Valle Valle family is captured and extradited to the US, while Chepe Luna is assassinated.
  • 2015: José Miguel “Chepe” Handal Pérez is captured.

Call for Action

The report calls for greater transparency and accountability from government officials and law enforcement agencies to combat this issue and protect the public interest. It also highlights the importance of a vibrant local media in exposing these criminal activities and holding those responsible accountable.

Sources

  • US State Department
  • US Treasury Department
  • Honduran government officials