MEXICO-CORRUPTION Mexican ethics probe clears Pena Nieto, finance minister

Record ID: 143121

  • Title: MEXICO-CORRUPTION Mexican ethics probe clears Pena Nieto, finance minister
  • Date: 22nd August 2015
  • Summary: MEXICO CITY, MEXICO (AUGUST 21, 2015) (REUTERS) EXTERIOR OF MINISTRY OF PUBLIC ADMINISTRATION HEADQUARTERS ENTRANCE TO MINISTRY OF PUBLIC ADMINISTRATION HEADQUARTERS SIGN AT MINISTRY OFFICIALS AT NEWS CONFERENCE MEDIA AT NEWS CONFERENCE GENERAL VIEW OF NEWS CONFERENCE (SOUNDBITE) (Spanish) HEAD OF THE PUBLIC ADMINISTRATION MINISTRY, VIRGILIO ANDRADE, SAYING: "It can be con
  • Embargoed: 6th September 2015 13:00
  • Keywords:
  • Location: Mexico
  • Country: Mexico
  • Topics: General
  • Reuters ID: LVAA7N3GTVXKG48FJPSQ9DB3993M
  • Aspect Ratio: 16:9
  • Story Text: A Mexican government auditor on Friday (August 21) exonerated President Enrique Pena Nieto and his finance minister of any wrongdoing over purchases of homes from public contractors, but opposition lawmakers poured scorn over the bid to lay the scandal to rest.
    In a news conference to announce the probe's findings, it was reported Pena Nieto and his Finance Minister Luis Videgaray had not broken any laws and argued that the two politicians had not held public office at relevant moments in the chronology of the purchases.
    Speaking in the Mexican capital, the Mexican leader welcomed the findings but acknowledged allegations of corruption and conflict of interest had hurt his family.
    "The investigation shows that my spouse's conduct and my own were in accordance with the law. However, I am aware of and recognise that these events were left open to interpretation that hurt and angered Mexicans. To all of them, I want to offer a sincere apology. These months have been difficult for my family," he said.
    Pena Nieto also recognised the case had spurred public outcry over allegations of corruption and political cronyism in Mexico.
    "We should understand that our public responsibility is guided by the law but also we are obliged to act in a way that our actions do not provoke suspicions nor misinterpretations. I am also aware that these events have generated necessary and profound debate regarding transparency, of accounts and combating corruption," added the president.
    Appointed by Pena Nieto to run the public administration ministry after an outcry over the homes, Virgilio Andrade, head of the Public Administration Ministry, concluded that the investigation showed that neither Pena Nieto nor Finance Minister Luis Videgaray had gained benefits or tried to influence officials responsible for awarding contracts to companies that sold homes to them and the president's wife.
    "It can be concluded that the president did not violate obligations under the previously mentioned article as the legal existence of the sale contract with reservation of ownership of the house Sierra Gorda 150, which was held before Mr Enrique Pena Nieto was a public servant," he said.
    Andrade reported investigators had questioned 111 officials involved in awarding 33 contracts to the companies linked to the homes.
    "It was also determined that there was no conflict of interest. Enrique Pena Nieto nor Dr Luis Videgaray Caso (Finance Minister) incurred any partial action related to the legal powers which correspond to them. Nor did they participate in any way in the contracts awarded by the Federal Government which was previously referred to," he added.
    Videgaray bought his home in October 2012 when he was head of the transition team formed after Pena Nieto won the July 2012 presidential election, and had been expected to hold a top cabinet post once they took office that December.
    Also, by the time first lady Angelica Rivera agreed to buy her multi-million dollar house in January 2012, Pena Nieto was the clear favourite to win the presidency.
    Rivera went on the defensive over the allegations in a Youtube video.
    "I am not a public servant but I cannot allow this issue to question my honourability and above all else that it damage my family," she said.
    The controversy erupted last November when it emerged Rivera was acquiring her home from a company that was part of a Chinese-led consortium to build a $3.75 billion rail link.
    The government cancelled the rail contract just before a major media investigation on the home purchase was published.
    Andrade's arguments were in line with the position taken by the Mexican presidency, whose chief spokesman in January said there would be no mea culpa over the purchases.
    Out on the street, locals were divided over the findings of the probe.
    "Because he is the president what's going to happen? There's no chance they'll put him in jail or before a judge while he is in power. This is Mexico, what are we going to do?," said Mexico City resident, Argel Robles.
    "I think that if it was bought before, as the investigation found, if it was bought before assuming this role, it's because they (Pena Nieto and Rivera) earned money doing some type of business, something completely legal as established in the investigation," added local resident, Eduardo.
    The housing revelations were deeply embarrassing to Pena Nieto because the lucrative rail contract was cancelled just as he was about to set off to China for a state visit.
    It subsequently emerged that Videgaray had purchased a home from Hinojosa and that Pena Nieto enjoyed rent-free use of another Hinojosa property during the 2012 election campaign.
    Further media investigations showed Pena Nieto had bought a property a decade ago from a different company that subsequently went on to acquire substantial government business.
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