07/14/20 (written by kheinle) – In the first week of July, the López Obrador administration netted two high-profile cases of corruption. One case includes the former governor of Chihuahua, César Duarte. The other involves the former CEO of Petróleos Mexicanos (Pemex). Both suspects will be extradited back to Mexico where they face charges of corruption, among other counts.
Former Governor Duarte was arrested in Miami, Florida on Wednesday, July 8. The Mexican government sought his extradition on corruption charges stemming from an audit of the Duarte administration’s finances. The audit led officials to question “the possible diversion of the equivalent of about $320 million [USD] in government funds in 2016, when Duarte was governor,” writes The Associated Press. According to official documents, there was “significant irregularities” in the administration’s spending. Along with the help of some of his staff, Duarte “embezzled state funds for the benefit of himself and his associates,” the court filings read. He also faces charges of illegal campaign financing. He served as governor of Chihuahua from 2010 to 2016.
Chihuahua Judge María Alejandra Ramos Durán ordered Duarte’s arrest in October 2019 to face said charges. Previous requests had also been made, the first one coming in March 2017 from Chihuahua’s District Attorney. Animal Político writes that since the initial request, Duarte was considered a fugitive and placed on Interpol’s radar. At that time, Duarte was already residing in the United States, where he had swiftly relocated in November 2016 following his time in office. He then proceeded to overstay his temporary six-month visa in the United States. According to Chihuahua Governor Javier Corral Jurado, in the past five years, Duarte amassed more than 50 properties in Florida, New Mexico, and Texas, among others.
The U.S. Justice Department and U.S. Marshals led the effort to capture Duarte. Following the arrest, Santiago Nieto, the director of Mexico’s Treasury’s Financial Intelligence Unit (Unidad de Inteligencia Financiera, UFI), commented, “No one is above the law.” Duarte was arraigned in U.S. court on July 10.
Former Head of PEMEX
One week prior to Governor Duarte’s arrest, Spain approved the extradition of Emilio Lozoya. the former CEO of Petróleos Mexicanos (PEMEX). Lozoya ran Pemez – Mexico’s state-owned petroleum company – from 2012 to 2016. The suit against Lozoya, which was opened in May 2019, was the first high-profile case of corruption that President Andrés Manuel López Obrador launched after taking office six-months prior. Spanish officials arrested Lozoya in southern Spain in February 2020.
The former CEO faces charges of corruption, tax fraud, bribery, and money laundering. Some of his alleged crimes tie in with the corruption scandal that unfolded with Brazilian construction company Odebrecht. According to the Associated Press, “The court documents say Oderbrecht allegedly offered [Lozoya] $6 million [USD] in bribes to get a contract for renovating an old oil refinery. The Brazilian firm allegedly wound up paying him $5 million.” However, the amount received may be significantly higher, according to conflicting media reports. Some sources say that Lozoya “allegedly took more than $10 [million] in bribes from Odebrecht starting in March 2012.” There are also allegations that Lozoya participated in bribery and money laundering with a Mexican fertilizer plant that Pemex purchased at a rate higher than market value.
Although he continues to deny wrongdoing, Lozoya did agree to cooperate with Mexican officials in the investigation. This does not come as a surprise to some, notesThe Associated Press. “…Many in Mexico had expected Lozoya might implicate others in the former ruling Institutional Revolutionary Party, the PRI, perhaps including former [P]resident Enrique Peña Nieto…” Lozoya had a close working relationship with President Peña Nieto (2012-2018), who himself had faced serious criticism for his administration’s fledgling efforts to curtail corruption.
Capacity to Combat Corruption (CCC) Index 2020
Duarte’s and Lozoya’s arrests come on the heels of a report co-published in June by the Americas Society / Council of the Americas and the consultancy firm, Control Risks. The report, “The Capacity to Combat Corruption (CCC) Index 2020,” looks at Latin American countries’ capacity and capability to ‘detect, punish, and prevent corruption.’” The authors criticize President López Obrador for failing combat corruption despite campaign promises to do so. Read more about that report and its critical findings here.
Still, the recent arrests and agreed upon extraditions in July 2020 are two important victories for the López Obrador administration.
Harrup, Anthony and Juan Montes. “Mexican Investigators File Corruption Charges Against Pemex Ex-CEO.” The Wall Street Journal. May 27, 2019.
“Efforts to Combat Corruption in Mexico Exemplify the Depth of the Problem.” Justice in Mexico. June 11, 2019.
Simon, Roberto and Geert Aalbers. “The Capacity to Combat Corruption (CCC) Index 2020.” Americas Socity / Council of the Americas and Control Risks. June 8, 2020.
“Corruption in Mexico Persists Despite Campaign Promises.” Justice in Mexico. June 24, 2020.
“Extreme corruption on charge sheet of Mexico’s ex-oil chief.” The Associated Press. July 6, 2020.
“Spain court approves extradition of Mexico’s former oil chief.” Al Jazeera. July 6, 2020.
“Ex-Mexico governor arrested in Miami on extradition request.” The Associated Press. July 8, 2020.
“César Duarte acumuló 50 propiedades en tres estados de EU, indica Corral.” Animal Político. July 9, 2020.
“César Duarte comparece mañana a través de video en Miami.” El Universal. July 9, 2020.