Honduras is currently one of the most violent countries on the planet that is not at war. The violence is carried out by transnational criminal organizations, local drug trafficking groups, gangs and corrupt security forces, among other actors. Violence is the focal point for the international aid organizations, governments and multilaterals providing Honduras with assistance, and it is the central theme of media coverage inside and outside of of the country.
There are good reasons for this focus. Violence disproportionately impacts people in poor and marginal areas and tends to remain concentrated in those communities, closing the circle on a vicious cycle that impoverished nations find hard to break. In addition, violence impedes economic development and disrupts lives across a wide socio-economic spectrum. It can lead to major demographic shifts and crises as large populations move to urban areas or try to migrate to other nations. It can undermine governance and democracy, and it can serve as a justification for repression and hardline security policies that divert resources away from much-needed social and economic programs, thus perpetuating the problem.
Organized crime plays a role in this violence, but it is more like the gasoline than the engine: it provides an already corrupt system with the fuel it needs to run. That corrupt system is the focus of this study on Honduras. Its most visible manifestation is an inept and criminalized police force that a former security minister once called “air traffic control men” for drug flights coming into the country.1 Parts of this police force also work as custodians and assassins for criminal groups; rob drugs and resell them to the underworld; and, for a price, they can attack client’s rivals and disrupt criminal investigations.
But beneath this most obvious form of criminal connection to state officials is a more insidious brand of corruption. This is further from the headlines and much more difficult to tackle since it is embedded in the country’s political, economic and social systems. It operates in a gray area, mixing legal and illegal entities, paper companies and campaign contributions, and sweeping its illicit acts under the rug using co-opted members of the justice system and security forces.
What we are talking about, of course, is the elite connection to organized crime that this investigation exposes. The elites in Honduras are not like those in the rest of the region. The traditional, agro-export and industrial elites who rule in places like Guatemala, El Salvador and Nicaragua are less prominent in Honduras, mostly because of the country’s long history as an enclave economy dominated by multinational companies: the original Banana Republic. Instead, the country’s most powerful economic elites have emerged from the service, banking, media, and telecommunications sectors. They are called transnational elites since many of them are first or second generation immigrants from the Middle East and Eastern Europe and depend on international business dealings to accumulate capital. Traditional, land-based elites are present in Honduras. But they have long been relegated to a second tier, forced to seek power through control of government posts, rather than using financial leverage.
While the ruling elites in Honduras do not share the same origins or economic base as their counterparts elsewhere in the region, they do share their neighbors’ penchant for employing the state for their own ends and systematically impoverishing it. Both the traditional and transnational elites have for years used the military and police to protect their personal land holdings and businesses. They have benefitted from the sale of public companies and lands, and they have enjoyed tax exonerations for their multitude of businesses. They have also pillaged its resources, and, as the government’s importance to the economy has grown, relied on it to generate more capital. Their dependence on the state has opened the way for a third set of what we are calling bureaucratic elites, who have developed a power base of their own because of the government positions they occupy.
Honduras, meanwhile, has become one of the poorest, most unequal and indebted countries in the world. Any attempts to change this system have been met with stern and often unified opposition from elites of all stripes. And attempts to exert more regulatory control over the activities of the elites are smothered before they begin. It is little surprise then that the country offers criminals, large and small, one of the most propitious environments from which to work. On one side, an ineffective justice system and corrupt security forces, long exploited by these elites, opens the way for large criminal groups to operate with impunity. On the other side, an impoverished populace — which sees and understands exactly how elites abuse a broken system — seeks to get its share by working directly with criminals in the illegal and legal enterprises these criminals operate. Crime, as it turns out, is one of the few forms of social mobility.
It is within this gray area that the elites themselves also interact with organized crime. Far from being distant from illegal activities, the elites have long operated in this realm. From dealing in contraband goods and services to buying permission for their illegal dealings and “get-out-of-jail-free cards,” those who do politics or business in Honduras understand that the laws governing the nation of eight million people are but a means to make money. Their connection to the underworld therefore is about societal, commercial and political interactions in the multiple spaces where business and politics happen in Honduras. The result is an organic relationship with organized crime that helps some elites reach the top and others stay there.
Elites in Honduras
Honduran elites have a peculiar history compared to other elites in the region.2 The country’s economy was built on exports, like its neighbors. Unlike them, however, Honduras’ principal export industries — first mining and then bananas — were almost wholly foreign owned. Local economic elites were enmeshed in cattle and other agro-industrial projects and formed the backbone of the traditional political groupings, the National and Liberal Parties. But a strong, local elite based on the control of land and agro-exports, of the type found in the other countries in the region, did not materialize.
“The root … of Honduran exception was the country’s insertion into the world market and the development of its domestic political apparatus under the aegis not of a national agro-exporting oligarchy, but of US monopoly capital,” writes Rachel Sieder.3
The most famous of these monopolies was United Fruit Company, which Sieder argues “consolidated its hegemony” over local politics in the 1930s and 1940s during a military dictatorship.4 Meanwhile, a smaller more traditional, landed elite shared power — first with these foreign companies and later with foreign settlers who concentrated their efforts on facilitating foreign-owned businesses and controlling the influx of foreign capital.5 These immigrant communities arrived from Europe and the Middle East throughout the 20th century. They have since been dubbed the “transplant” or “transnational” elites (or “Turcos,” a broad-sweeping and quasi-racist reference to their Middle Eastern origins).
These transnational communities established control over what have become the dominant industries in Honduras: the financial and service sectors, telecommunications and media. They also acquired land, competing with and eventually overtaking the traditional elite’s hold on the agrarian economy as it shifted towards non-traditional exports. This traditional elite was largely land-based, depending on activities such as cattle, coffee and cacao to exert its influence. But it never coalesced the way landed elites did in neighboring Guatemala, leaving it largely sidelined, even as US capital slowly exited the country when commodity prices slipped because of increased, worldwide competition. Today, it can be difficult to differentiate between the traditional elites and the transnational elites. Although crossover is more commonly associated with the transnational than the traditional elites, both have diversified their economic portfolios, and both are deeply involved in politics.
What is clear, however, is that Honduras’ top economic groups are run by relatively recent transplants that accumulated capital over the past half-century. The biggest business conglomerates in Honduras carry distinctly foreign names like Facussé, Maalouf and Rosenthal.6 Meanwhile, traditional, landed elites have shifted their focus to controlling government posts and elected offices. Two of the last three presidents come from cattle ranching families, and current President Juan Orlando Hernández is from a coffee family. For both the traditional and transnational elites, their business and political prospects are intertwined with a government that was, for most of its existence, less of an enforcer than an enabler.
Throughout Honduras’ history, the state has been a source of both legal and physical protection for this export economy, the traditional landholding and transnational commercial classes. The public sector was seen, as Hugo Noé Pino notes, as a “concessionary state,” one that “stimulates investment but does not collect taxes.” The government was also a means through which the elites could expand their interests. The political parties represented, for many years, a manifestation of these elite interests.
What came first for the transnational elite — economic or political power — is a matter of some debate. As Noé Pino says, there are two visions of the political-economic nexus at the apex of power in Honduras: 1) that the accumulation of capital was intimately related to the political connections throughout; 2) that the accumulation of capital was what led to these close political connections. Certainly elements of both were at play. And as the country’s traditional exports declined, particularly in the 1970s, and therefore the power of the traditional elites waned, the transnational elites surged to take more direct control of the traditional political parties.
Indeed, the state’s evolution during this period was intimately related to the development of the transnational economic elites. This class tied themselves to the traditional political parties, often making contributions to both parties during elections, ensuring their influence would remain intact whoever won. Noé Pino argues this group created business associations to channel their needs and influence, and that many of its members have been part of the revolving door between government ministries and the private sector that has characterized Honduras for at least the last half century.
For the transnational elites, the state’s role was simple: to create and enforce rules that favor their continued power over key industries and the capital accumulation that accompanies it. Along the way, they managed public discourse as well: they bought newspapers, radio and television stations, and have steered popular sentiments and political messages towards their favored candidates and in support of their modus vivendi. Since the 1970s, the media has largely become an instrument of this elite, and a source of its revenue.7
The dependence of the elites on the state security forces to protect their enterprises led to the emergence of the military as a political and an economic player. This growth was aided by the United States, which, fearing the rise of communism in the region, began training Honduran officers en masse and supplying greater amounts of aid,8 a process that would accelerate in the 1980s and help transform the institution forever. Members of the armed forces became what we are calling a “bureaucratic elite,” something we will cover in more detail in the first Honduras case study. Some of their offspring are the political and economic elite of Honduras today and the institution is at the center of the changing dynamics of power in the country.
The influx in US aid came as traditional exports continued a steep decline, and the country tried to diversify its economy. At the behest of its largest donor nation, the United States, Honduras expanded its export portfolio, lowered tariffs, sold state-owned businesses, and gave financial incentives for local and foreign investment, mostly in the form of reduced taxes. In the 1990s, as US aid dropped precipitously, multilateral banks filled the void and pushed for further liberalization policies.
The efforts to diversify the economy, however, largely failed. Lacking a solid revenue base, and with a state that was unwilling or unable to extract tax revenue from the traditional and transnational elites, the government relied on outside sources to motor the economy. Loans from multilateral banks and others have since made Honduras a perennial pariah in the global banking community, further hampering economic growth. (In March 2014, Honduras had a $7 billion debt, up from $2.7 billion in 2007.9) And while the central idea was to reduce government’s role in the economy, as GDP sputtered, the state assumed an increasing burden to keep the economy afloat. Since 1980, the percentage of GDP that public administration, defense and other state services represent have gone from 16 percent to 22 percent.10
Despite these broad failures, both the traditional and the transnational elites have found ways to keep making money at the expense of the vast majority of Hondurans. For their part, the transnational elites took advantage of the market liberalization policies that began in the 1980s, and dominate the textile industry as well as tourism and telecommunications. They have become particularly powerful in the service sector, financing and constructing malls, buying into international food franchises and profiting from one of the country’s largest sources of revenue: remittances. Remittances represent some 18-20 percent of the country’s current GDP, powering the internal consumption that drives the service sector’s growth.
Source: ICEFI 2012
There were other new sources of licit and illicit revenue besides remittances, foremost among them are non-traditional agriculture projects such as African palm plantations and proceeds from the trafficking of drugs through the country. Drug trafficking money can itself be considered as a form of remittances, as the illicit capital resulting from this trade enters the Honduran economy, passing through the financial sector and fueling growth in the agro-industrial sector, construction and tourism industries. It is through this financial flow that the elites interact with illicit actors. As we shall discuss in more detail later, all forms of elites can benefit from this illicit economic activity, both directly and indirectly.
Meanwhile, the traditional, landed elite has experienced a resurgence of sorts by re-gaining control of the traditional political parties, capturing the increase in state expenditures and controlling more of the flow of foreign capital via their hold on public offices. Like the transnational elite, this group sees the state as an enabler of business enterprises, although in their case the opportunities frequently come via publicly funded projects. The corruption in this system is endemic, widespread and infused.11 They use these monies to maintain their grip on power, undermining or ignoring the rule of law when it suits them.
The battle for these resources is at the center of many political disputes and, in some ways, shapes the country’s government and political parties. The deal-making around these resources can get messy, as it involves billions of dollars. It is, in the end, seen by the elites as a zero-sum game: those who control the government levers control the spoils in this system; those who are separated from these levers, risk getting marginalized. As the dependence on these government resources increases, so does the need to control the government filters for these resources.
The result of this growing dependence on state resources has been the emergence of the aforementioned bureaucratic elite. As illustrated in our first case study, the beginnings of these elites can be traced to the military rule of the 1960s and 1970s, and the de facto military control that continued through the 1980s. But it is in the last decade that these bureaucratic elites have become a force on their own and in conjunction with members of the traditional elites.
This new hybrid elite’s most prominent representative is President Juan Orlando Hernández himself. Educated in a military school, Hernández has surrounded himself with military officers, including his brother who is a colonel in the army. He has placed military personnel in posts traditionally reserved for civilians, and has centralized control of the security forces and intelligence gathering under the presidency. The hybrid group under Hernández’s control, often referred to as the Colobrí Group, combines military personnel, local politicians and the landed gentry, and works closely with the state at the regional and national levels. Colobrí is Spanish for hummingbird.
The resurgent traditional landed elites and bureaucratic elites have centered their capital growth on the control of government resources, and of key government posts that give access to various income streams. Those who control these posts use them to block other elites’ access to these income streams, and to penalize rivals. Their dependence on these government posts and funds is what drives these elites to create their own political movements or develop factions within larger parties, as well as establish private companies that service the government’s needs.
Obtaining and maintaining these political posts is of the utmost importance, and it is within this context that the darkest alliances occur. The elites must gain public and private backing for their bids for government office. This backing comes via direct financial contributions, media coverage and support, as well as networking, and local political and economic alliances. The candidates constantly jockey for position, and their various suitors are ever-changing. Among them are the powerful actors of the Honduran underworld.
Organized Crime in Honduras
Strong, organized criminal groups in Honduras date back almost 50 years. At their highest levels, they have centered on facilitating the movement of illegal drugs such as marijuana and cocaine from the southern production regions to the northern consumer nations. More recently they have also facilitated the entry of precursor chemicals used to mass-produce synthetic drugs. The money garnered from this trade dwarfs many traditional businesses and has the ability to upset the balance of power on a local, national and even a regional scale.
There are three basic categories of criminal groups present in Honduras. First, there are transnational criminal organizations (TCOs), such as those from Colombia or Mexico, who use the country as a transport bridge and as a storage facility for cocaine that they are moving wholesale to the US or other markets. They tend to operate in small teams. Usually their emissaries seek to ensure that drug loads are secure, that officials are in line and that transactions go as planned. Honduras’ status as a safe haven for TCOs has grown in recent years, making it a good base of operations for increasingly high-level figures in these groups. There have been reports of members of the “board of directors” of the Sinaloa Cartel, for instance, having a base in San Pedro Sula.12
Second, there are local transport groups — or “transportistas” — that operate in Honduras. These are mostly Honduran families or tight business networks from the country that move legal and illegal goods through Honduras. They work closely with wholesale sellers and purchasers, as well as with other transport networks in Central America and elsewhere. They move shipments and can also store them for long periods of time. Neither job is easy. There are numerous rival organizations that steal and resell illegal goods. These include members of the security forces, which very often include the police. The transport groups also have to deal with multiple officials from border to border. However, if done well, transportation can be a highly lucrative venture.
Finally, there are local criminal groups and street gangs operating in Honduras. These groups focus on less lucrative business ventures such as local drug distribution, extortion, kidnapping, and human smuggling. The competition for these criminal markets, in particular for local drug dealing and extortion, is what makes Honduras one of the most violent countries on earth. Gangs routinely eliminate rivals and have internal purges. They also deploy corrupt security officials to attack rival groups. Their territorial control in some areas is absolute, although their interaction with elites is minimal.
The criminal groups that have the most interaction with elites in Honduras are the transportistas and the TCOs. As we shall see in our case studies, these organizations need authorities to help them move illicit goods through a difficult terrain. They interact with security forces to ensure safe passage, and interact with powerful businessmen to launder proceeds and legitimize their illicit capital. Throughout, they establish political contacts, funding candidates for public office in an effort to obtain high-level protection and more business opportunities.
The money garnered from this trade dwarfs that made from many traditional businesses and has the ability to upset the balance of power on a local, national and even a regional scale. This was best illustrated in Latin America during the late 1980s, when Colombia’s infamous trafficking organization, the Medellín Cartel, began kidnapping elites, assassinating judges and policemen, and detonating bombs in public places. However, the roots of this dynamic can be found many years previously when Colombian, and later Central American and Mexican criminal organizations, began to move cocaine and other drugs to the US market.
The pioneer for this transport activity in Honduras was a man named Juan Ramón Matta Ballesteros, the subject of one of our Honduras case studies.13 In the 1970s, when Matta Ballesteros emerged as a prominent trafficker, Honduras already had criminal groups that were involved in this transport business.14 Matta Ballesteros’ distribution network eventually stretched from Colombia through Mexico. His allies in Mexico became known as the Guadalajara Cartel, which would later spawn some of the most important criminal groups in that country: the Sinaloa, Juárez and Tijuana Cartels. His allies in Colombia were members of what would become the Medellín Cartel.
As we shall see, Matta Ballesteros’ Honduran network included members of the military, an institution on the ascent thanks in large part to US aid stemming from the Contra War in neighboring Nicaragua.15 It was during this era that Honduras earned the moniker USS Honduras. A US government document from 1988 described Matta Ballesteros as “a class I DEA violator.”16 His legitimate businesses in Honduras were also growing. By one count, he had coffee, tobacco, spice, dairy and cattle holdings, and founded construction and agro-industrial companies in Honduras.17
In 1985, everything changed when the Guadalajara Cartel, seemingly angered by a US Drug Enforcement Administration (DEA) operation to seize large tracts of its marijuana crops in Mexico, kidnapped and killed Enrique Camarena, a DEA agent. With Camarena’s death, the United States government began a law-bending quest for justice. Over the next several years, numerous Guadalajara operatives and leaders were arrested and convicted in Mexico. Matta Ballesteros was arrested in Colombia, but with the Medellín Cartel’s help, he escaped and made his way back to Honduras, where he felt protected by his vast network and wealth.
In 1988, capitulating to US concerns about Matta Ballesteros’ increasing influence, the military and US Marshals intercepted him following his morning jog, bundled him up and transported him to the Dominican Republic where US marshals officially arrested and charged him with participating in the murder of Camarena, among other criminal acts. From there, he was taken to the US. Up to 2,000 two of Hondurans, mostly students angered by the move, attacked the US embassy, setting fire to several annex buildings and burning vehicles. At least four of the protesters were killed, and US officials said it took two hours for the Honduran authorities to respond their their call for help.18 Matta Ballesteros was later convicted in a Los Angeles court of kidnapping19 and drug trafficking, and remains in a US federal prison.
Following Matta Ballesteros’ dramatic fall, the country continued to be a bridge for traffickers to move illicit goods.20 The list goes beyond drugs: weapons, money, people, and all types of contraband move in and out of Honduras. A group of Salvadoran smugglers, for instance, moved dairy products from Honduras to El Salvador during the civil war in that country. The so-called “Cartel de los Quesos” (Cheese Cartel) would later be dubbed the “Perrones,” and would develop a drug trafficking network that still stretches from Panama to Guatemala. One of their chief operators, José Natividad Luna Pereira, alias “Chepe Luna,” operated his network from San Pedro Sula where he had close contact with elites until he was assassinated in 2014.21
In the early 2000s, Honduras experienced another surge of drug trafficking activity. At the time, Mexican criminal organizations that had emerged after the demise of the Guadalajara Cartel were establishing more control over the distribution chain, and began using Central America as their primary bridge. Several local transport groups emerged. Among them were Chepe Luna’s in El Salvador and Honduras, José Miguel “Chepe” Handal Pérez’s group in San Pedro Sula, the Valle Valle family in Copán, the Zelaya clan in Atlántida, and the Cachiros organization in Colón.22 The Cachiros are the subject of one of our Honduras case studies. These groups’ main function was moving cocaine through the region, but they also had numerous side businesses such as human smuggling and local drug distribution.
The size of this criminal industry is massive when compared to Honduras’ economy. The US State Department estimates that 95 percent of cocaine transported from South America to the United States moves through the Mexican and Central American corridor; 80 percent of this stops in Central America.23 The price charged for moving this cocaine is normally the difference between the wholesale price where the drugs are received and where they are dropped. In the case of Honduras, this difference in price is somewhere in the range of $2,000 to $2,500 per kilo from the time it enters to the time it leaves the country.24 The price of cocaine varies, of course, but this price difference has remained steady for several years. This means the transport market alone is valued at between $600 million and $750 million per year, or somewhere between 3 and 4 percent of the country’s GDP.25 By our estimates, drug proceeds amount to more than half of those generated by the country’s top export, coffee, does.26
All five groups mentioned above had strong political and economic connections that helped them develop close relationships with the authorities, as described above in the case of Matta Ballesteros and the military. One of them, Handal, was an aspiring congressman before the US Treasury Department added him to its “Kingpin List” in April 2013.27 He denied being involved in drug trafficking before going on the run.28 Handal was captured in March 2015.29
Figure 2: Handal Organizational Chart
Source: Taken from US Treasury
For his part, Francisco Zelaya Fúnez had various construction companies and had signed a number of public works contracts with the municipality of La Ceiba before he was captured in Mexico in 2013. A newspaper described him as being connected to a “high level official in the previous administration.”30 For their part, the Valle Valle family had strong connections to Alexander Ardón, mayor of a town on the Guatemalan border named El Paraíso. Ardón’s brother, Hugo, ran the central government’s road construction and maintenance fund known as Fondo Vial. The core of the Valle Valle family was captured and extradited to the US in 2014.31
This type of connection between criminals and political actors has become commonplace over the years. In 1987, congressman Félix Cerna Salgado admitted having a close relationship with Matta Ballesteros. In the early 2000s, three congressmen were captured for transporting drugs. In July 2014, Honduran authorities arrested Arnaldo Urbina, the mayor of Yoro, and charged him and numerous others of running a drug trafficking and assassination ring that was responsible for the murder of 137 people and the disappearance of 45 others.32
The criminal organizations’ ability to accumulate capital and wield this economic power to their advantage is largely hidden from view, since Honduran authorities have developed few strong judicial cases against them and there is not a vibrant local media. What’s more, public officials threaten these interests at their own peril. In December 2009, police assassins killed Honduran drug czar Julián Arístides González, and two years later his outspoken one-time advisor, Alfredo Landaverde was gunned down. Investigating detectives quickly determined that the triggermen were police officers operating under orders of top police brass. But the detectives just as quickly buried those investigative reports, and they did not come to light until years later. In April 2013, gunmen assassinated Orlán Chávez, the country’s top money laundering prosecutor.33 The day before his death, Chávez had led a raid on several of aforementioned Chepe Handal’s suspected properties and seized them. Suspicion fell on Handal, but the case remains unresolved.
The economic might of these groups only began to come into view when the United States deemed Handal, and then the Cachiros, as specially designated narcotics traffickers, and placed them on the so-called “Kingpin List.”34 Handal’s business holdings included various auto parts stores, a motorcycle distributor, and a clothing store. A US indictment, issued in the Southern District of Florida, called for him to forfeit $38 million in proceeds from his illicit business dealings.
After authorities began raiding the Cachiros’ properties in September 2013, however, it was clear that Handal was small by comparison. The US Treasury, in its “Kingpin” designation, named five businesses that it said belonged to the organization,35 and officials from both countries estimated the group’s assets were in the hundreds of millions of dollars.
In later part of 2014, US and Honduran authorities also targeted the Valle Valle family organization. That family’s assets, the US Treasury said in an August 2014 “Kingpin” designation, included several coffee plantations and a cattle ranch. The group, the US Treasury declared, was moving upwards of 10 tons of cocaine through Honduras per month. Rough calculations by InSight Crime put the group’s annual earnings near $300 million or about 1.6 percent of Honduras’ GDP.
Figure 3: Valle Family Organizational Chart
Source: Taken from US Treasury
Perhaps more important than their coffee and cattle holdings was the group’s direct link to Ardón, the mayor of El Paraíso, and to his brother, Hugo.36 Between the two of them, the Ardóns managed dozens of state contracts which facilitated the movement of money between themselves and their legitimate and illegitimate partners. The merry-go-round created by this type of money flow is a critical part of understanding how corruption and crime work in places like Honduras. Money moves from state coffers into licit and illicit businesses whose owners then bankroll the candidates who are financing their projects or facilitating their money laundering activities. In the process, the Honduran public is left out of the loop. The Ardón brothers had the perfect machine to keep this merry-go-round spinning.
But by late 2014, the Honduran government appeared to have them in its sights, making veiled references to the network in the press (calling it the “Cartel de Alex”). The network had created a powerful group that reached the highest echelons of power in Honduras. This, as our case studies illustrate, is the norm in the country rather than the exception, and it is changing the entire complexion of Honduras’ ruling elite.
*This report was written by Steven Dudley. Dudley, Javier Meléndez — who acted as coordinator for research for this project — along with researchers from the Centro de Investigación y Promoción de los Derechos Humanos (CIPRODEH) and the Asociación para una Sociedad más Justa (ASJ), assisted in the investigation and production of this report. Map by Jorge Mejía Galindo. Graphics by Andrew J Higgens.
 Geoffrey Ramsey, “Departure of Honduras security minister a victory for corrupt cops,” InSight Crime, 12 September 2011. Available at: /news/analysis/departure-of-honduras-security-minister-a-victory-for-corrupt-cops
 This is section is based mostly on the research done by Honduran historian Jorge Amaya. It also draws heavily from Hugo Noé Pino, “Elites, Estado y la reconfiguración del poder en Honduras, 1990-2011: El ámbito de la política fiscal,” and Manuel Torres Calderón, “La élite, su orientación y fundamentos geográficos en Honduras,” both of which will be published in a forthcoming FLACSO-Costa Rica book edited by Eric Hershberg entitled, “Elites y la configuración del poder en Centroamérica: Dinámicas de acumulación y sus consecuencias, Vol. 2.”
 Rachel Sieder, “Honduras: The Politics of Exception and Military Reformism (1972-1978),” Journal of Latin American Studies, vol. 27, no. 1 (1995), p. 106.
 José Edgardo Cal Montoya, “Estado y elites en la historia de Honduras: reflexiones sobre su situacion actual (1980 – 2009),” in “Memorias del III Congreso de Investigacion Cientifica,” Instituto Universitario en Democracia, Paz y Seguridad (IUDPAS), National Autonomous University of Honduras (UNAH), 2009.
 Manuel Torres Calderón, “La élite, su orientación y fundamentos geográficos en Honduras,” to be published in forthcoming FLACSO-Costa Rica book edited by Eric Hershberg entitled, “Elites y la configuración del poder en Centroamérica: Dinámicas de acumulación y sus consecuencias, Vol. 2.”
 Rockwell, Rick. “La concentración de los medios de comunicación y la perpetuación de los sistemas elitistas en Centroamérica,” to be published in a forthcoming FLACSO-Costa Rica book edited by Eric Hershberg entitled, “Elites y la configuración del poder en Centroamérica: Dinámicas de acumulación y sus consecuencias, Vol. 2.”
 Rachel Sieder, “Honduras: The Politics of Exception and Military Reformism (1972-1978),” Journal of Latin American Studies, vol. 27, no. 1 (1995), p. 107.
 World Bank data. Available at: https://www.worldbank.org/en/publication/global-economic-prospects/data?variable=BNCABFUNDCD_®ion=LAC
 Hugo Noé Pino, “Elites, Estado y la reconfiguración del poder en Honduras, 1990-2011: El ámbito de la política fiscal,” to be published in a forthcoming FLACSO-Costa Rica book edited by Eric Hershberg entitled, “Elites y la configuración del poder en Centroamérica: Dinámicas de acumulación y sus consecuencias, Vol. 2.”
 In 2014, Transparency International ranked Honduras 140 of 177 countries in its corruption perceptions index, noting that it has “scarce” or no budget openness. Available at: https://transparency.org/country#HND_DataResearch
 Steven Dudley, “US ‘Kingpin’ Designation Exposes Sinaloa Cartel Head in Central America,” InSight Crime, 7 January 2015. Available at: /news/analysis/us-kingpin-designation-exposes-sinaloa-cartel-head-central-america
 Matta is also frequently written as “Mata.” See: Proceso Digital, “A 12 ascienden los bienes asegurados a Ramon Mata Ballesteros,” 31 July 2014. Available at: https://www.proceso.hn/component/k2/item/85914.html
 Julie Marie Bunk and Michael Ross Fowler, “Bribes, Bullets, and Intimidation: Drug Trafficking and the Law in Central America” (University Park, PA, 2012).
 James LeMoyne, “Military Officers in Honduras Are Linked to the Drug Trade,” New York Times, 12 February 1988. Available at: https://www.nytimes.com/1988/02/12/world/military-officers-in-honduras-are-linked-to-the-drug-trade.html.
 US Senate, “Drugs, Law Enforcement and Foreign Policy: A Report Prepared by the Subcommittee on Terrorism, Narcotics and International Operations of the Committee on Foreign Relations” (aka the Kerry Committee Report), December 1988, p. 77.
 Julie Marie Bunck and Michael Ross Fowler, “Bribes, Bullets, and Intimidation: Drug Trafficking and the Law in Central America” (University Park, PA, 2012), p. 276.
 Associated Press, “Honduran leader acts to put down anti-U.S. protests,” 8 April 1988. Available at: https://www.nytimes.com/1988/04/09/world/honduran-leader-acts-to-put-down-anti-us-protests.html
 John H. Lee, “Camarena Figure Gets 3 Life Terms,” 9 May 1991. Available at: https://articles.latimes.com/1991-05-09/local/me-1914_1_honduran-juan-matta-ballesteros
 This section and the following is based on numerous interviews by InSight Crime investigators with Honduran, Guatemalan, Salvadoran and US intelligence and anti-drug agents between 2010 and the present. The agents spoke to InSight Crime on the condition their names do not appear in print. It is a condition that is limiting but necessary in order to obtain at least a broad sketch of the organizations and activities in question.
 InSight Crime interviews, Honduran and US anti-drug agents who requested anonymity, 2013.
 Bureau of International Narcotics and Law Enforcement Affairs, “2012 International Narcotics Control Strategy Report (INCSR),” 7 March 2012.
 InSight Crime interview with a member of a drug trafficking organization who requested anonymity, Tegucigalpa, Honduras, 3 May 2013.
 The World Bank estimates Honduras’ GDP at $18.5 billion. Available at: https://data.worldbank.org/country/honduras
 Coffee, according to the MIT Observatory of Economic Complexity, is worth $1.38 billion. See: https://atlas.media.mit.edu/profile/country/hnd/
 US Treasury, “Treasury Designates Honduran Drug Traffickers,” press release, 9 April 2013. Available at: https://www.treasury.gov/press-center/press-releases/Pages/jl1888.aspx
 AFP, “‘Chepe’ Handal niega que sea narcotraficante,” 10 April 2013. Available at: https://www.elheraldo.hn/sucesos/622110-219/chepe-handal-niega-que-sea-narcotraficante
 David Gagne and Kyra Gurney, “What’s Behind Honduras’ Arrest of ‘Narco’ Politician,” InSight Crime, 13 March 2015. Available at: /news/analysis/whats-behind-honduras-arrest-of-narco-politician
 La Tribuna, “Cae supuesto narco hondureño y es extraditado hacia los EE UU,” 6 July 2013. Available at: https://www.latribuna.hn/2013/07/06/cae-supuesto-narco-hondureno-y-es-extraditado-hacia-los-ee-uu/
 David Gagne, “Completing Chapter, Honduras Extradites Valle Brothers to US,” InSight Crime, 19 December 2014. Available at: /news/briefs/honduras-extradites-valle-drug-clan-brothers-to-us
 Marguerite Cawley, “Honduras mayor accused of running murderous drug running gang,” InSight Crime, 29 July 2014. Available at: /news/briefs/honduras-mayor-accused-of-leading-murderous-drug-running-gang
 El Heraldo, “Asesinan a fiscal y coordinador de la unidad Contra el Lavado de Activos,” 19 April 2013. Available at: https://www.elheraldo.hn/csp/mediapool/sites/ElHeraldo/Sucesos/story.csp?cid=622187&sid=293&fid=219
 US Treasury, “Treasury Targets ‘Los Cachiros’ Drug Trafficking Organization in Honduras,” 19 September 2013. Available at: https://www.treasury.gov/press-center/press-releases/Pages/jl2168.aspx
 For more on Alexander Ardón, see: Douglas Farah and Carl Meacham, “Alternative Governance in the Northern Triangle: Finding Logic within Chaos,” Center for Strategic and International Studies, September 2015. Available at: https://csis.org/files/publication/150911_Farah_AlternativeGovernance_Web.pdf
The research presented in this investigation is the result of a project funded by Canada’s International Development Research Centre (IDRC). Its content is not necessarily a reflection of the positions of the IDRC. The ideas, thoughts and opinions contained in this document are those of the author or authors.