US Govt Investigating Carriers for Alleged Corruption

The US government is investigating American telecoms carriers for allegedly paying bribes to Honduran officials to engage in "gray traffic," or the illicit bypassing of legal telecommunications channels, newspaper La Tribuna quoted Charles Ford, US ambassador to Honduras, as saying.

Without naming the companies under investigation, Ford said the best way to combat gray traffic was through greater competition, which would help drive down long distance calling rates, which are monopolized by state-owned incumbent Hondutel and are, according to Ford, amongst the highest in the world.

Greater competition can be facilitated by the approval of a telecoms reform bill, which has been stuck in congress for more than two years, Ford said.

Honduras' long distance telephony market was partially liberalized in December 2005. However, private companies can only set up as sub-operators and buy franchises to resell Hondutel services.

Ford spoke after a meeting with Honduras' congressional president Roberto Micheletti and two US trade officials that are visiting the Central American nation to see the progress being made regarding the free trade agreement signed with the US.

The telecoms law reform bill is due to be sent to the executive branch for review. However, lawmakers from Honduras' conservative part PN have backed calls for discussion of the bill to be suspended pending resolution of corruption allegations at Hondutel.

Controversy regarding Hondutel and gray traffic exploded in August when US NGO the Arcadia Foundation accused Hondutel's general manager Marcelo Chimirri and the country's presidential minister Yani Rosenthal of personally benefiting from the gray traffic.

Posted to the site on 1st October 2007