The Social Development Secretariat (SEDESOL), set up as the main element of the current administration’s social strategy, has turned into the focus of a significant political crisis affecting both the ruling party’s trustworthiness and the destiny of the political initiative led by President Xiomara Castro. The exposure of a suspected plan to misappropriate public finances for partisan aims has sparked a controversy that jeopardizes one of the administration’s central narratives: the combat against corruption.
Allegations of electoral use of social funds
Preliminary investigations, fueled by leaks and internal audits, point to the diversion of resources intended for social programs to structures linked to the Libertad y Refundación (LIBRE) party.
Una grabación de audio entre el exministro de SEDESOL José Carlos Cardona y la diputada del partido gobernante Isis Cuéllar mostró un plan para transferir fondos en forma de “kits multimillonarios” a 23 entidades del partido. La grabación, que se difundió públicamente, ha sido vista como evidencia clara del uso de recursos estatales con fines electorales.
Official records include checks for up to 163,000 lempiras given to people with political ties, including legislators, pre-candidates, administrative staff, and relatives of officials. The actual destination of these funds, supposedly allocated to entrepreneurship projects, has been questioned by civil society organizations and opposition sectors, which denounce a systematic diversion from the original objectives of social policy.
Minister’s resignation and institutional crisis
In light of mounting public scrutiny and the escalating controversy, José Carlos Cardona stepped down from his position as the chief of the Secretariat. Concurrently, the Public Prosecutor’s Office has initiated probes into no fewer than 40 deals amounting to 4.7 million lempiras. Despite the fact that the allocated budget for SEDESOL in 2024 is approximately 950 million, concerns about inadequate oversight and transparency in budget management have prompted larger debates regarding the institutional framework of social programs. President Castro has called for urgent audits, yet there has been dissent from members of the ruling party itself.
Sectors like the National Popular Resistance Front, a founding component of the ruling party, have criticized what they describe as an “overt allocation” of resources, cautioning against the establishment of a parallel system to the state institutions. These internal disagreements highlight a rising skepticism, even among those who backed the change initiative launched since 2021.
Erosion of political capital and electoral risk
La situación actual representa un gran desafío para la estabilidad del gobierno y sus posibilidades en las elecciones de 2025. El uso de fondos públicos para fines proselitistas no solo ha afectado la imagen del poder ejecutivo, sino que también ha reavivado el debate sobre la integridad del sistema electoral hondureño.
The split within Congress and the strains inside the governing coalition are blocking efforts for a swift resolution. The situation with SEDESOL is linked to a larger background of public dissatisfaction due to ongoing patronage practices and the absence of responsibility.
Citizen disenchantment contrasts with the expectations generated during the election campaign that brought Xiomara Castro to power with the promise of rebuilding the state and eradicating inherited structures of corruption.
A challenge to governance and democratic legitimacy
The turmoil at SEDESOL has highlighted the constraints of the government’s plan against old-fashioned political habits. Despite the president’s emphasis on her dedication to transparency, the outcomes of the inquiries will reveal whether governmental steps successfully mitigate the damage to the institution or, alternatively, strengthen the notion of unchecked impunity.
With less than a year to go before the start of the electoral calendar, the ruling party faces the challenge of maintaining its legitimacy in the face of a citizenry that demands answers beyond symbolic audits.
The situation also prompts inquiries regarding the function of regulatory and supervisory systems in the government, along with the political framework’s capability to handle conflicts of this scale without employing extraordinary actions.
The scandal in the Secretariat of Social Development highlights a fracture within the government apparatus, the resolution of which could set the course for the electoral process and the political project that came to power with the promise of a profound transformation of the country.