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Bello The Mexican morass A president who doesn’t get that he doesn’t get it Jan 24th 2015 | From the print edition IN A new year message Mexico’s president, Enrique Peña Nieto, promised to work to “liberate” his country from crime, corruption and impunity. His cabinet has duly set these as its priorities. The message is the right one. But unfortunately for Mr Peña, Mexicans are increasingly cynical about the messenger. Mexico is still seething over the government’s leaden response to the kidnap in September of 43 students by municipal police in the southwestern state of Guerrero and their apparent murder by drug traffickers. The investigation of the case seems to have stalled. Mr Peña’s main policy response to the massacre is a proposed constitutional amendment to abolish municipal police forces. But Congress may not approve it, not least because some are less rotten than the state forces, which would take their place. In the government’s defence, the rule of law cannot be created in Mexico overnight. It will take years, perhaps decades, to clean up and strengthen the country’s police. But his critics believe Mr Peña is dodging the most important task: to punish corrupt political bosses who are complicit in organised crime. And the government itself is now stained by scandal. The latest embarrassment, reported this week in the Wall Street Journal, is that in 2005 Mr Peña bought a house from a small builder who has won a slew of contracts from his administration. This follows the revelation that Luis Videgaray, his finance minister, bought a $500,000 house at a fashionable golf club with a mortgage from the vendor, a company owned by Juan Armando Hinojosa. The businessman has received much work from the federal government and previously from the state of Mexico when Mr Peña was its governor and Mr Videgaray was finance secretary. This confirmed the close links between the administration and Grupo Higa, Mr Hinojosa’s

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  • Bello

    TheMexicanmorassApresidentwhodoesntgetthathedoesntgetit

    Jan24th2015| Fromtheprintedition

    INAnewyearmessageMexicospresident,

    EnriquePeaNieto,promisedtoworkto

    liberatehiscountryfromcrime,corruptionand

    impunity.Hiscabinethasdulysettheseasits

    priorities.Themessageistherightone.But

    unfortunatelyforMrPea,Mexicansare

    increasinglycynicalaboutthemessenger.

    MexicoisstillseethingoverthegovernmentsleadenresponsetothekidnapinSeptemberof43

    studentsbymunicipalpoliceinthesouthwesternstateofGuerreroandtheirapparentmurder

    bydrugtraffickers.Theinvestigationofthecaseseemstohavestalled.MrPeasmainpolicy

    responsetothemassacreisaproposedconstitutionalamendmenttoabolishmunicipalpolice

    forces.ButCongressmaynotapproveit,notleastbecausesomearelessrottenthanthestate

    forces,whichwouldtaketheirplace.

    Inthegovernmentsdefence,theruleoflawcannotbecreatedinMexicoovernight.Itwilltake

    years,perhapsdecades,tocleanupandstrengthenthecountryspolice.Buthiscriticsbelieve

    MrPeaisdodgingthemostimportanttask:topunishcorruptpoliticalbosseswhoare

    complicitinorganisedcrime.Andthegovernmentitselfisnowstainedbyscandal.

    Thelatestembarrassment,reportedthisweekintheWallStreetJournal,isthatin2005Mr

    Peaboughtahousefromasmallbuilderwhohaswonaslewofcontractsfromhis

    administration.ThisfollowstherevelationthatLuisVidegaray,hisfinanceminister,boughta

    $500,000houseatafashionablegolfclubwithamortgagefromthevendor,acompanyowned

    byJuanArmandoHinojosa.Thebusinessmanhasreceivedmuchworkfromthefederal

    governmentandpreviouslyfromthestateofMexicowhenMrPeawasitsgovernorandMr

    Videgaraywasfinancesecretary.

    ThisconfirmedthecloselinksbetweentheadministrationandGrupoHiga,MrHinojosas

  • businessempire.InNovemberthegovernmentabruptlycancelleda$3.7billioncontractfora

    highspeedtrainawardedtoaconsortiumincludingGrupoHiga.Dayslateritemergedthatthe

    presidentspalatialprivatehomehadbeenboughtwithalargemortgagegrantedtotheFirst

    Ladybythegroup.

    BothMrPeaandMrVidegarayinsistthattheyhavedonenothingillegal.Theyaremissingthe

    point.Inmoderndemocracies,whoseranksMexicoaspirestojoin,thekindofmutualback

    scratchingtheyappeartohaveengagedinwithGrupoHigaisseenasunacceptablebehaviour.

    Iftheyareseriousabouttacklingcorruptionandconflictsofinterest,Mexicospoliticalleaders

    couldlooktoBrazil.Petrobras,Brazilsstatecontrolledoilcompany,isembroiledinamuch

    biggerscandalinvolvingkickbacksofperhaps$4billionoverthepastdecade.Prosecutors

    believemuchofthemoneywenttotherulingWorkersPartyanditsgoverningallies.The

    president,DilmaRousseff,chairedthePetrobrasboardformuchofthisperiod.

    Thankstofiercelyindependentprosecutorsandcourts,andatoughnewantibriberylaw,

    BrazilianscanbeconfidentthatthewrongdoingatPetrobraswillbeinvestigatedandpunished

    evenwerethetrailtoleadtoMsRousseffherself.In1992aBrazilianpresidentwas

    impeachedforcorruptionmorerecently,severalministershavebeenforcedtoresignover

    dodgycontractsorunethicallinkstoprivatebusinesses.Dozensofmanagersofconstruction

    firmsundercontracttoPetrobrasfacecriminalcharges.

    ForsuchthingstobecomethinkableinMexico,severalchangesareneeded.Proposalsforan

    independentprosecutorsofficeandanticorruptionagencyshouldbefasttracked

    (depressingly,MrPeassupporterswantthelatterundergovernmentcontrol).Thesecond

    missingelementispoliticalaccountability.Nobodyhastakenresponsibilityandresignedover

    thesecurityfailings,thedodgytraincontractortheconflictsofinterest.Nobodyhasbarred

    GrupoHigafromgovernmentcontractswhileitisindependentlyinvestigated,ifonlyto

    establishthatitisblameless.

    Theydontgetthattheydontgetit,saysaformerseniorofficial.ButMexicansdogetit.Mr

    Peasapprovalratinghasfallento40%,closetothelowesteverforaMexicanpresident.

    Hisboldeconomicreformsmayyetbringpoliticalreward.Theoppositionssplitsmayhelphim

    winacongressionalelectioninJune.Butthepastfewmonthshaveunderminedtheauthority

    heusedtosecurethereforms.Andwithpollssuggestingthatturnoutintheelectionwillbe

    dismal,themainbeneficiaryofthecynicismthepresidentisengenderingmaybeAndrs

    ManuelLpezObrador,amessianicpopulistwhohastwicealmostwonthepresidency.Mexico

    deservesbetter.

    Fromtheprintedition:TheAmericas