Honduran Critics Call Próspera’s New Officials a ‘Modern Coup’
Key Facts
Próspera, a libertarian-backed private city on a Honduran island, keeps operating two years after its legal basis was struck down. Critics now say its latest appointments amount to a “modern coup” against the state.
On 15 September 2026, Próspera named lawyer Alberto Hernández Franks as “fiscal civil”, a civil prosecutor enforcing its own rules. Honduran outlet Criterio.hn reported on 18 September that civil-society leaders called the move a coup against Honduran sovereignty.
Why This Matters
Próspera is a ZEDE, or Zone for Employment and Economic Development, on Roatán in the Bay Islands. A 2013 law let such zones write their own rules, courts and taxes, with long guarantees of legal stability.
Congress repealed that law unanimously in April 2022, and the Supreme Court declared the zones unconstitutional on 20 September 2024. Criterio reported that eight of 15 justices backed voiding the framework from its origin.
Próspera answered the repeal with an international arbitration claim against the Honduran state. The dispute now falls to the government of President Nasry Asfura, whose National Party created the zones.
What the Critics Say
The appointment was announced on Honduras’s independence day, Criterio reported on 17 September. According to the zone, Hernández Franks will enforce its civil, tax and administrative rules.
Constitutional lawyer Joaquín Mejía wrote on X that Próspera keeps operating and has named a “fiscal civil”. A delegation from the Unidad Popular Hondureña, a civil-society coalition, asked the Supreme Court to enforce its 2024 ruling.
Fernando García, former presidential commissioner against the ZEDEs, described “a type of coup” carried out through international arbitration. Pedro Rafael Alegría of the peasant movement Vía Campesina said the zone acts as a parallel state.
The Arbitration and Próspera’s Position
Próspera filed a US$10.775 billion claim under CAFTA-DR, the US-Central America trade pact, in December 2022. Its October 2025 memorial at ICSID, the World Bank’s arbitration body, seeks restoration of its rights first.
As an alternative, it asks for US$1.63 billion in damages plus US$1 million for moral harm. The company wrote that it “would much prefer a constructive dialogue with Honduras to arbitration”.
After the 2024 ruling, Próspera warned of “a climate of insecurity and uncertainty for investors and employees”, Reuters reported. Honduras’s exit from ICSID took effect on 25 August 2024, and it rejoined from 16 August 2026.
What Is Not Yet Known
Criterio’s report carried no response from Próspera to the coup accusation. It is unclear whether the Supreme Court, prosecutors or the Asfura government will act on the activists’ demands.
Frequently Asked Questions
What is Próspera?
Próspera is a privately run charter zone on Roatán, created under Honduras’s ZEDE law. It says its rights are protected by legal stability guarantees and CAFTA-DR.
Is Próspera legal in Honduras?
The Supreme Court declared the ZEDE framework unconstitutional in 2024. Próspera disputes the consequences and is pursuing international arbitration.
Sources: Criterio.hn, activists call Próspera appointments a modern coup, Criterio.hn, Próspera names a civil prosecutor despite ruling, Claimants’ Memorial on the Merits, ICSID Case ARB/23/2 (italaw), ICSID, Honduras ratifies the ICSID Convention (2026), Stabroek News (Reuters), Supreme Court ruling and Próspera reaction, TDM, Próspera’s December 2022 claim announcement
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