The Honduras-based development bank’s claims against former Executive President Dante Mossi, who led CABEI between 2018 and 2023, include violations of racketeering laws, breach of fiduciary duty, market manipulation and breach of contract, it said in a statement.
The bank did not renew Mossi’s tenure last year, a decision that CABEI said in its lawsuit reflected concerns about his leadership and character.
In response, Mossi, a Honduran national, told Reuters he was surprised by the lawsuit and it lacked merit. “My management at the bank was completely audited,” he said, “I’m not afraid.”
A 2023 investigation by the Organized Crime and Corruption Reporting Project, a consortium of journalists, found that CABEI under Mossi funded infrastructure projects that were dogged by corruption allegations and its loans were used to pay bribes.
Founded in 1960, CABEI’s members include eight countries in Central America as well as seven countries outside the region.
Mossi contended CABEI’s case was a response to his lawsuit claiming the bank owes him $6,000. He has demanded more than $3 million in damages and legal fees over the issue.
In the CABEI complaint, it said it refused to pay the $6,000 because he had used bank funds to hire a lawyer to assess the decision not to retain him.
It described Mossi’s lawsuit as part of “an unrelenting campaign of extortion” against the bank.
Source: Economy - investing.com
