CNN
January 11, 1999

Former Honduras leader to testify in fraud probe

 
                  TEGUCIGALPA, Honduras (Reuters) -- Former Honduran President
                  Carlos Reina said on Monday he will testify before prosecutors investigating
                  a multimillion dollar fraud scandal during his 1994-1998 term.

                  The Comptroller General's office is probing whether officials in Reina's
                  administration benefited from millions spent in preparing for the 1996 Central
                  American games hosted by the northern city of San Pedro Sula.

                  "I have received an invitation from the comptroller's office to appear
                  tomorrow (Tuesday)," Reina told reporters. "I have very little to say in the
                  matter, except that I have no administrative responsibility."

                  Authorities said numerous "irregularities" were found in the concessions
                  handed out to companies to build roads and a stadium for the games.

                  In some cases, investigators said, there was no public bidding for the
                  projects. In other cases, investigators said officials handed out all-expenses
                  paid trips to judges who never showed up for the games or claimed other
                  expenses with no receipts.

                  The mayor of San Pedro Sula, Oscar Kilgore, said his city has been saddled
                  with $27 million in debt from the games and demands for $8 million more
                  from companies who were not paid for their work.

                  Reina, who organised an unprecedented crusade against corruption during
                  his term, has steadfastly denied any wrongdoing and said he was not
                  involved in the details of planning for the games.

                    Copyright 1999 Reuters.