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By Chris Covert
The petition voted Wednesday to call on the national attorney general for an investigation into the massive amount of debt contracted by Coahuila state while Humbero Moreira Valdes was governor, was fairly straightforward, according to Mexican press sources.
But the debate was anything thing but.
The petition asked the Procuradora General de la Republica (PGR) to investigate into possible wrongdoing by Coahuila state officials in the run up to its current debt of MP $33.867 billion (USD $257,861,305.98), the fourth largest of Mexican states in terms of the absolute amount and the largest per capita terms. The debt expansion commenced around 2005, two years before Moreira assumed office, until the end of 2010.
The petition also asked the Mexican national auditor's office, Auditoria de Fiscalizacion Superior de la Federacion (ASF) to audit Coahuila state for its accounting and management practices.
The petition also demanded that the Coahuila state legislature conduct its own review of the debt and the accounting and management practices that allowed it to balloon by a factor of 100.
Judging by statements from several senators prior to the vote, the debate must have been rancorous.
| The debt issue with Moreira is especially poignant because of how the proceeds were used: in operations rather than capital improvements, which in every public or private entity that contracts debt is a huge red flag for potential malfeasance. Moreira possibly used his bulging treasury to fund income support programs, which fueled his political popularity and brought with it friends and supporters who expected to benefit from the largesse Moreira was amassing. |
Partido Revolucionario Institucional (PRI) senator Francisco Arroyo countered the request for endorsement of the debt by the local congress that the Coahuila state Chamber of Deputies had already endorsed the debt, even the renegotiation of the coupon completed late last month. The Coahuila state legislature not only endorsed the debt, it is already planning for deep cuts in the programs partially funded by the debt, many of which are income support programs.
"We will not discuss this as part of a political vendetta," Arroyo is quoted as saying.
The Maoist Partido Trabajo (PT) senator Ricardo Monreal helpfully pointed out the obvious: "If there were justice, Moreira and his cronies would already be in prison, but I assure you nothing will happen even if this is a federal criminal matter."
In the end, the resolution passed by votes including all three major parties, PAN, PRI and Partido Revolucion Democratica (PRD) and PT senators.
Several official requests for an investigation into Coahuila's management practices during Moreira's term have already been made by top officials within the President Felipe Calderon Hinojosa's national administration. One was a request to the Secretaria de Gobernacion (SEGOB) or Internor Ministry, by Finance minister Ernesto Cordero just before he resigned to begin his campaign as a candidate for president of the republic under the PAN banner, and once by his appointed successor, Jose Antonio Meade at the end of September, addressed to the ProcuradurÃÂa Fiscal de la Federación or federal tax attorney.
This latest request for investigation is the most serious to date.
| To read the Rantburg report on the two requests for criminal investigation into management practices in Coahuila state and to follow relevant links, click here |
Even the head of the ASP, Esthela Damian Peralta last August said she was charged as part of her duties into looking into irregularities in the run up of Coahuila's debt, and would be doing so.
With the requests for criminal investigations already submitted by federal government officials, an audit probably planned or underway, and a local legislature fully aware of the huge debt overhanging the state, except for the seriousness of the matter, the resolution would seem to be wasted effort.
But PAN Senator Anaya told the press last August he would not stop placing pressure on Moreira until he "explained his actions."
Moreira has been under considerable pressure to deal with the political crisis, with some in his party suggesting he step down temporarily until the issue is put to rest, something Moreira has fiercely resisted.
The debt issue with Moreira is especially poignant because of how the proceeds were used: in operations rather than capital improvements, which in every public or private entity that does contract debt is a huge red flag for potential malfeasance. Moreira possibly used his bulging treasury to fund income support programs, which fueled his political popularity and brought with it friends and supporters who expected to benefit from the largesse Moreira was amassing.
Indeed, uncredited reports are that some of Moreira's friends had benefited in such a way it was impossible for the PRI not to allow a politician like Moreira to lead them And he may have brought those supporters along as he took over to prepare the PRI to retake Los Pinos in 2012 after an absence of 12 years.
Reports during Moreira's campaign to take the reins of the PRI included him appealing to the various labor unions and organizations,which are core to PRI's political power. If Moreira's friends and supporters had enriched themselves during his tenure as governor of Coahuila, it is hard to imagine how anyone could have stopped them from acquiring support from the unions for his drive to become leader of the PRI.