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| Caribbean-Latin America |
| Amidst a growing Mexican political scandal, a warning for states |
| 2011-08-25 |
| By Chris Covert To read the previous Rantburg story on the Moreira political crisis, click here Supporters of the leader of Mexico's Partido Revolucionario Institucional (PRI) Humberto Moreira voiced their support Wednesday in an attempt to deflect blame for the huge increase of debt in Coahuila state Moreira amassed while governor. But in the background opposition party leaders with a tinge of partisanship are now warning that Mexican states may be taking on too much debt. Tuesday Moreira himself attempted to deflect criticism of his financial dealings by accusing the federal government, currently in the hands of rival Partido Accion Nacional (PAN) of pursuing a "personal" vendetta against him as newly installed leader of PRI. Wednesday day the PRI coordinator for the Chamber of Deputies, Francisco Rojas said in a new article in El Universal daily that the charges against Moreira were a "barrage of half truths", and said the issue should be how the monies were used. Also Wednesday, Enrique Pena Nieto in a Notimex wire service interview dismissed that charges as fodder for next year's elections. Pena Nieto reiterated his confidence in Moreira as national leader of the PRI. The issue is the massive amount of debt Coahuila state has acquired during Moreira's tenure as governor,which ended last March when he ascended to take the reins of the PRI. The total debt for the state went from MP $323 million (USD $26,177,373.50) to MP $32 billion (USD $259,342,400.00) with interest outlays going from MP $1,300,000.00 (USD $105,357.85) a year to as much as MP $601 million (USD $48,707,744.50) a year. The increase is because Coahuila's bond ratings were decreased five levels by Moody's Investor Service and Fitchs. The increase in interest outlays forced the Coahuila Chamber of Deputies to vote to refinance the current debt. Moreira's political scandal has gained the attention of other sectors of the Mexican government such as the chairman of the Mexican national auditor, Comision de Vigilancia de la Auditor�a Superior de la Federacion (ASF), Esthela Damian Peralta. Senora Damian Peralta announced today her agency would request to see Coahuila state books to determine if management of the new resources were according to law. The issue with such an audit, according to an article in El Universal daily are reports that an aide to Moreira while he was governor, Javier Villarreal may have falsified documents as they related to the transfer of monies from the state to municipalities. Damian Peralta told El Universal that documents relating to the transfer were submitted later than usual. When such an event takes place the ASF is charged with looking into why. Laura Angelica Rojas, natioanal coordinator for local deputies for PAN's Comite Ejecutivo Nacional warned that more Mexican states were taking on too much debt without providing publication on websites and transparency as required by law. As an example, Angelica Rojas cited Javier Durate, PRI governor of Veracruz who has contracted new debt in the amount of MP $30 billion (USD $240,615,900.00). The Veracruz Chamber of Deputies is currently discussing asking for another MP $700,004,00 or borrowing authority. Angelica Roja said in 2010 Veracruz borrowed MP $10 billion (USD $80,205,300.00). She also mentioned PRI occupied Tamaulipas, which has requested to borrowed MP $730 million (USD $58,549,869.00). "(PAN) is not willing to give a blank check to the PRI governors," Angelica Rojas is quoted as saying. Another PAN politician, Guillermo Anaya, who is associate CEN said that countercharges by PRI politicians that PAN is playing politics with public debt "insults the intelligence of the average Mexican, as politicians seek to hide their vices." Anaya also said the issue will not end until Moreira has explained his actions. |
| Posted by:badanov |