Loan scandal topples head of Mexico’s PRI party

Humberto Moreira steps down as the scandal over borrowing in Coahuila state threatened to derail the PRI’s bid to retake power in elections next year.

  • An activist holds a photo of former Coahuila state Gov. Humberto Moreira behind bars during a protest in Saltillo, Mexico, on Thursday.
An activist holds a photo of former Coahuila state Gov. Humberto Moreira… (Reuters)
December 03, 2011|By Ken Ellingwood, Los Angeles Times

Humberto Moreira, president of Mexico’s former ruling party, quit his post Friday amid a swelling financial scandal that threatened to throw off the party’s bid to retake power in next year’s elections.

Moreira has been hammered for months by charges that in his previous job as governor of the northern state of Coahuila, he left it saddled with $3 billion in debts, at least partly due to loans allegedly sought using falsified documents.

Moreira, who was named head of the Institutional Revolutionary Party, or PRI, early this year, has denied wrongdoing, saying the heavy borrowing took place after he left the governorship in January to run for the national party post.

The state was run by a stand-in governor, Javier Torres, until Thursday, when Moreira’s brother, Ruben, took over. Both are members of PRI. Ruben Moreira was elected governor in July.

Humberto Moreira announced his resignation before a televised gathering of the PRI’s political council, saying he would not allow a “war in the media” to hurt his party.

The debt controversy was becoming a drag on the PRI even as early polls show it poised to retake power in Mexico 12 years after being unseated. The scandal threatened to remind voters of the sort of graft that characterized the PRI’s 70-year reign just when it is seeking to promote a fresh, cleaned-up image.

The federal attorney general’s office said it has opened an investigation of possible wrongdoing over the Coahuila debt.

Moreira’s departure appeared to become inevitable when the PRI’s lone presidential candidate, former Gov. Enrique Pena Nieto of the state of Mexico, acknowledged this week that the scandal was taking a toll.

Many analysts predicted that Moreira would step down after gubernatorial elections were held Nov. 13 in the western state of Michoacan. The PRI won, defeating the sister of Mexico’s conservative president, Felipe Calderon.

That victory continued the winning streak the PRI has been on since it regained control of Congress’ lower house in 2009.

The PRI’s top post will for now be held by its secretary-general, Cristina Diaz. But reports say the post could soon go to Manlio Fabio Beltrones, an old-guard senator who mounted a halfhearted campaign for the party’s presidential nomination before yielding to Pena Nieto last week.

During nine months as party president, Moreira was known for a combative style. He hit back at charges that the party coddled drug lords, noting acerbically that when the PRI was in control, the country’s top suspect, Joaquin “Chapo” Guzman, was in custody. Guzman escaped from a Mexican prison in 2001, after the right-wing National Action Party, or PAN, took over.

But the months-long borrowing scandal proved difficult to shake. The staggering debt burden has created a financial crisis in Coahuila.

The loan requests allegedly carried false declarations that the Coahuila Legislature had approved the borrowing, from private banks. Coahuila officials have said the funds were used for public works, but have yet to account for the money.

Source: Los Angeles Times

About northernbarbarians

I'm an activist and advocate for human rights and the establishment of penalties to the simulators and inconsistent. My fight is for respect for universal rights and freedoms. Journalist various print and electronic media in several countries. Independent research analyst of social risks in unions, political, corporate and institutional image. Four books published and three in electronic version. Live one day at a time, even on payments, sometimes alive yesterday. Modest income is the price of freedom.
This entry was posted in Uncategorized and tagged , , , , . Bookmark the permalink.

3 Responses to Loan scandal topples head of Mexico’s PRI party

  1. Pingback: EL PRI, ¿AL DESPEÑADERO?; QUEMAZÓN POLÍTICA; PEÑA SE SACUDIÓ A MOREIRA. Salvador Flores LLamas « Silviano’s Weblog

  2. Pingback: EL PRI, ¿AL DESPEÑADERO?; QUEMAZÓN POLÍTICA; PEÑA SE SACUDIÓ A MOREIRA. Salvador Flores LLamas « Mi ombligo del mundo

  3. Pingback: De los impuestos que lastiman | Northern Barbarians's Blog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s