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Koriun fraud: criticism of the possible use of public funds to compensate

In Honduras, the situation surrounding Koriun Inversiones has led to significant public anxiety because of the absence of definitive responses and firm measures from the government. Over three months after the exposure of the multi-million dollar fraud, many victims still await the return of their investments and the accountability of those at fault. The apparent stagnation in the investigative process, along with the silence from the Public Prosecutor’s Office and lack of government intervention, has fueled doubts of a potential concealment or political shielding that hinders the proper administration of justice.

Meanwhile, legal specialists and thought leaders have voiced their opposition to the notion that the state ought to deploy public resources to rectify the losses of individuals affected by this private scam. They caution that this could be unlawful and violate the constitution, besides introducing considerable financial and political dangers. In this situation, the public’s call is centered on guaranteeing the process stays within the legal framework, with openness and avoiding turning into a populist action that jeopardizes the lawful and prudent administration of public assets.

The debate surrounding the state’s handling of the Koriun scam

Koriun Investment’s pyramid scam functioned for several years, offering a 20% monthly profit without any formal oversight or regulation. Although the Public Prosecutor’s Office confiscated over 358 million lempiras, there has been no advancement in prosecuting the scam’s leaders, nor has there been any clarity on how the seized assets are being treated. This has led to increasing anger among the impacted families, who have lost savings, borrowed money, and even their houses, and they are calling for justice, openness, and the restoration of their money.

The quietness and seeming inaction of the authorities and the Public Prosecutor’s Office have intensified the belief that there is a political shield hindering the complete resolution of the situation. Observers from different societal and legal areas have noted that the lack of arrests of those accountable and the unclear management of confiscated resources indicate governmental neglect that might be encouraging impunity. There is significant public pressure for prompt and impartial measures to guarantee appropriate legal repercussions for those accountable.

Legal and financial consequences of potential reimbursement with governmental funds

Legal experts and economists have warned that using state resources to compensate Koriun victims could constitute a crime of embezzlement of public funds, especially if there is no legal framework approved by Congress to support such action. Officials who authorize payments without proper legal backing could face criminal liability for abuse of authority and breach of duty. Furthermore, assuming this debt could destabilize public finances, affecting priority areas such as health and education, and send a message that could encourage impunity in future fraudulent schemes.

Non-governmental organizations are urging the authorities to transparently disclose the legal and financial sources of any potential reparations, report on the actual developments in the case, and provide the names of the individuals involved along with their confiscated assets. They stress the importance of ensuring the proceedings stay strictly within the legal framework, preventing it from turning into an initiative with political or populist objectives. The core request is for the government to refrain from taking on financial liability for private misconduct, to avoid being complicit or breaching legal principles.

By Enma Woofreis