Monthly Mexico - Xplored

Monthly Mexico
January 30 - March 5, 2015
Successful counter cartel operations are overshadowed by large scale
protests
Significant Events
Monthly Mexico
January 30 - March 5, 2015
Flashpoint & Outlook Summaries
January 29
The decapitated body of Journalist José Moisés Sánchez Cerezo was discovered in Veracruz.
February 6
Three gunman abducted and beat journalist Enrique Juárez Torres from his home in Matamoros.
February 7
Twelve employees of a Canadian-owned Media Luna mine project in Cocula, Guerrero were abducted leaving work.
February 19
Ten people injured during the teacher union’s attack on Coca-Cola facilities in Chilpancingo.
February 20
PRI local chairwoman Cecilia Izaguirre Camargo was murdered in Pinihuan, San Luis Potosi.
February 24
Protestors disrupted access to the Acapulco Airport; approximately 100 demonstrators were reportedly detained.
Evolution of the 43 missing students protests
Students, Teachers unions, and local militia
members have become increasingly distrustful of
the government and violent as more information
becomes available.
Oaxaca State Police Protests End
Frustrated with recent firings Oaxaca state police
occupied the state armory, repulsed a raid b6y
the federal police and came to terms with the
Governor about labor concerns.
Success of Counter Cartel Operations
Knights Templar and Gulf Cartel leadership were
captured and 17 tons of marijuana was
interdicted.
February 25
Civil unrest in Acapulco caused death of union activist Caludio Castillo Pena and the injury of 22 police and protestors.
March 1
PRD, councilman Ruben Magaña’s body was found at a trash dump in Penjamillo, Michoacan.
Threat table
Key dates
Region
North
Central
South
Threat Average
Moderate
High
Moderate
Political
Moderate
Moderate
Moderate
K&R
High
High
High
Violent Crime
High
High
Moderate
Petty Crime
Moderate
High
Moderate
Civil Unrest
Moderate
High
High
Threat scale:
Minimal
Low
Moderate
High
March 16 — Benito Juárez birthday observed
March 18 — Oil Expropriation Day
March 20 - April 5 — Holy Week
Extreme
*Reviewed and re-graded accordingy as of January 30 - March 5, 2015
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Monthly Mexico
January 30 - March 5, 2015
Incident Mapping
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January 30 - March 5, 2015
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Monthly Mexico
January 30 - March 5, 2015
Current Assessment
Economic Activity
Labor, security, and environmental concerns, have negatively impacted international investment in Mexican
businesses and infrastructure. The Mexican government released an annual report indicating that foreign direct
investment (FDI) in Mexico has fallen nearly 36% since 2013, resulting in losses of nearly 22.5 billion USD.
Additionally Mexican oil revenues have declined drastically, including a 43.5 % drop in revenues from January to
February. The weak investment climate and disappointing oil prices made the projects going forward as
increasingly important.
On February 17, Nestlé finalized construction of a pet food plant in Silao, Guanajauto. The project is valued at
220 million USD, and will provide 500 local jobs. Nestlé became the first consumer products company to achieve
federal labor equality certification, which is in stark contrast with companies such as the Jalisco garment factory,
which was shut down on February 5 due to claims of worker exploitation, physical, and sexual abuse. However,
economic opportunity in Zapopan is so scarce, that on February 14, 30 former Jalisco employees began
protesting the shut down in an effort to return to work at the allegedly abusive garment factory.
On February 11, China and Mexico resumed collaboration on the export of iron ore. Before reissuing export
licenses to China, Mexico had to wrestle control of the mines and trucking routes from the criminal enterprise
Knights Templar, who at one point illegally controlled up to 25% of Mexico’s nearly 10 million annual tons iron
ore exports. On February 18, the state owned petroleum company Petrolos Mexicanos (PEMEX) announced that
due to illegal tapping, it will send only unfinished petroleum products through its 9,000 miles of Mexican
pipelines. During 2014, PEMEX experienced 3,674 illegal taps, which represents a 70% increase over 2013, and
caused the loss of approximately 1.15 billion USD. The government’s inability to secure its national oil
infrastructure is dangerous as taxes on oil exports generate one third the Mexican budget and 80% of Mexican
oil is transported via pipeline. While this solution may make illicit profiteering more difficult, some analysts fear
criminal enterprises may refine the oil themselves, directly steal from refineries and storage centers, or gain
access through corrupting or intimidating vulnerable PEMEX employees.
On February 17, Canadian company Timmins Gold purchased Canadian company Newstrike Capital for 113
million USD. The purchase will give Timmins Gold access to Veracruz State gold mines Ana Paula and Caballo
Blanco; a move sources indicate could provide and additional production potential of 326,000 ounces of gold;
which is valued at an estimated 400 million USD. On February 7, 12 employees of a Canadian-owned Media
Luna mine project in the town of Cocula, Guerrero were abducted leaving work. Additionally, the Ana Paula
mine is located near Torex Gold Resources’ Limón-Guajes project, which was shut down for six days last week
after a criminal gang kidnapped 15 area residents, including a Torex employee and three sub-contractors. In
addition to security concerns, several groups including Veracruz Governor Javier Duarte de Ochoa have voiced
environmental concerns about large scale gold mining operations.
On February 25, the Mexican government shut-down 11 textiles businesses in Puebla and Tlaxcala states based
on the NGO Face Up to the Atoyac’s November report indicating the pollution from these sites was causing
leukemia. The presence of methylene, toluene and chloroform in river water raised concerns at the Federal
Commission for Protection Against Sanitary Risk. Greenpeace issued a report stating the river was highly toxic, a
risk to the 1.2 million inhabitants, and identified that 78% of the 675 industrial operations do not comply with
environmental regulations. Municipalities have also been faulted for discharging untreated wastewater into the
river, making the Atoyac one of the most polluted rivers in Mexico. There is no additional information about future
industrial shut-downs, the potential economic impact of these shut-downs, or governmental actions to impose
and enforce environmental regulations.
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Monthly Mexico
January 30 - March 5, 2015
Journalism
Journalist José Moisés Sánchez Cerezo was abducted and his decapitated body was discovered on January 29
in Veracruz. Cerezo’s paper La Unión criticized the mayor Omar Cruz Reyes, criminal activity, and quality of
municipal services. Confessed killer Noé Rodríguez indicated that the mayor contracted the killing of Cerezo in
exchange for his gang’s impunity in the local drug market. Mexican law offers immunity to politicians, which
means Reyes will not be charged with Cerezo’s murder. Veracruz Governor Javier Duarte de Ochoa downplayed
Cerezo’s credibility and profession as a journalist and dismissed the possible connection between the mayor
and the murder.
On February 6, Enrique Juárez Torres, editor of the privately owned daily El Mañana in Matamoros, was
abducted. Three gunmen stormed the building and forced Juárez into a van, assaulted him, made death
threats, and dumped him outside the newspaper office. The paper’s delivery truck was hijacked before it could
deliver the paper criticizing the government. According to the general director of the El Mañana publishing group
Hildebrando Deandar, “the newspaper in Matamoros will stop publishing news on violence, according to press
reports.” The attack at the office and the hijacking of the newspaper delivery truck have caused four employees
to resign and reinforced the practice among journalists to self-censor to avoid confrontation from criminal
organizations and vindictive political officials.
A report released on February 13 indicated at least 81 journalists in Mexico were murdered between January
2000 and September 2014. In an effort to disseminate accurate and timely information about dangerous current
events anonymously, locals have taken to twitter hashtags. Unfortunately, some locals went as far as including
incriminating information about cartel dealings and personnel online. These organizations have also demanded
the removal of specific news accounts and offered ransoms upwards of 45,000 USD for their administrative login information.
In addition to targeting the journalists, their paper delivery routes, and their different forms of media, criminal
organizations have attempted to influence or even create their own media and propaganda arm. On February
21, the Secretary of Government of Coahuila, Victor Zamora Rodríguez indicated some reporters and media
outlets are being paid by criminal organizations such as Los Zetas to broadcast videos designed to discredit the
efforts of a tactical police unit Group of Special Weapons and Tactics (GATE). While GATE has been accused of
human rights violations during the current war on drugs, the GATE officers in the recently disseminated videos
have been analyzed and found to be fraudulent/
Judicial
On March 3, Oaxaca Legal Director Adán Córdova and 10 internal auditors were relieved for accepting bribes
from mayors. The group allegedly ignored the diversion of public funds into private accounts, delaying inquiries,
withholding or filtering confidential information from investigators and altering the results of audits.
San Blas Mayor Hilario “Layin” Ramírez Villanueva admitted to stealing from the public treasury during his first
term between 2008-2011. Despite this admission, went on to win re-election, and on March 3, decided to throw a
birthday party for the towns 40,000 residents. Political opponents accused of Villanueva of embezzling nearly 9
million USD during his first term as mayor, however Villanueva was named Mayor of the Year by the Global
Quality Foundation, in December, which based the selection on Ramírez’ charisma and achievements while in
office.
Human Trafficking
Mexican authorities have made several high profile raids against organizations engaged in human trafficking. On
February 21, the National Immigration Institute (INM) rescued 85 migrants in operations that took place in three
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Monthly Mexico
January 30 - March 5, 2015
February 21, the National Immigration Institute (INM) rescued 85 migrants in operations that took place in three
different states. The migrants are primarily working aged men from Guatemala and El Salvador who were
reportedly kidnapped by human traffickers and were being held in Tapachula, Chiapas. The authorities question
whether these men were abductees or economic migrants; however recognize the migrants were treated poorly
and suffering from dehydration and malnutrition. On February 25, Mexican police intercepted three buses
containing 128 migrants from Central America in Nuevo Leon State. On February 26, the Mexican Attorney
General’s Office broke up a human trafficking ring. Authorities arrested 42 people who were reportedly charged
with human trafficking, rape of an unaccompanied minor, sexually abusing migrants, illegal deprivation of
freedom and other crimes. On March 2, four suspected kidnappers were arrested and one captive was rescued
in Juitepec, Morelos. While many of these people begin as economic migrants, others are abducted and
eventually many become victims of human trafficking; regardless of their origin, migrants are treated poorly,
suffer from dehydration, and malnutrition.
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Monthly Mexico
January 30 - March 5, 2015
Flashpoints
Oaxaca State Police Protest End :
On February 1, Oaxaca state police began protesting over large lay-offs, pay discrepancies, and lack of
advancement opportunities. The state police barricaded themselves inside an armory containing thousand of
firearms, ammunition, tactical equipment and police vehicles. On February 13, approximately 500 Federal Police
(FP) attempted to assault the approximately 300 protesting state police in Coyotoepc, Oaxaca. The FP raid was
repulsed by gunfire from state police, with five FP wounded, four FP taken hostage, and 21 state police injured.
Later, a swap was negotiated and hostages were returned to their respective police forces. According to
government officials, when the state police went on strike in September, their demands were met. The State’s
Public Security Secretary allegedly announced in January that there would be salary increases of as much as
66% and improved benefits and equipment. If these statements were correct, it seems unlikey the police would
be striking.
On February 17, Oaxaca Governor Gabino Cué issued a deadline to report to Benito Juárez soccer stadium or
lose their jobs. An estimated 200 policemen abandoned their demonstrations and complied with the Governors
orders. Prior to the strike, Governor Cué fired an estimated 2,000 police officers stating that, “the majority of the
officers on strike failed to pass the performance and trustworthiness exams and are afraid of losing their jobs.”
By February 18, the remaining protestors ended their strike and agreed to return to work. The government and
police reportedly agreed to a 10% pay increase and no reprisals for the strike. Oaxaca State has recently
witnessed wide spread strikes for various reasons from public servants including teachers and the police; it is
unclear if the government will reach a deal with the teachers unions who do not have the same leverage as a
well-armed police force barricaded in the States armory.
Counter Cartel Operations :
The return of certain cartel factions, capture of other key cartel leaders, and successful major drug interdiction
are events that occurred in recent weeks. On February 13, security forces indicate that several members of the
Tijuana Cartel leadership have left prison and are re-establishing operations. Officials indicate that
confrontations between the Sinaloa Cartel and Tijuana Cartel over control of the city are common place. On
February 16, police arrested eight members of Knights Templar and seized 62 properties in Aquila and
Coahuayan suspected of belonging to the organization. According to authorities the seized property included
diverse group of legitimate businesses, properties, and assets. The raid provided valuable intelligence because
on February 27, Mexican federal police arrested leader Servando "La Tuta" Gomez at his home in Morelia,
Michoacán. Despite a major weapons cache found within the home, Gomez and seven other members of the
Knights Templar surrendered without incident. Gomez was allegedly living in isolation and suicidal as authorities
arrested nearly 1,500 members of his cartel, including his brother.
President Enrique Peña Nieto has been aggressive in capturing drug lords; ten top leaders of various cartels
have been captured or killed in the last six years. On February 17, police arrested presumed Gulf Cartel
operations leader Jorge Omar Aguilar Gallardo in Matamoros. Aguilar and two body guards, who were carrying 1
million USD, cocaine, weapons, ultimately surrendered without incident. Governmental officials argue that the
effortless surrender might indicate the Knights Templar and Gulf Cartel have been seriously damaged by Peña
Nieto’s counter cartel offensive. Despite the visible success in capturing senior cartel leadership, security
officials feel these successes will have minimal impact on curbing regional violence and drug trafficking
operations because the organizations have become less centralized, more regional, and diversified in criminal
activity.
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Monthly Mexico
January 30 - March 5, 2015
Regional Civil Unrest in Oaxaca and Guerrero States :
While the diverse protests groups have increasingly divergent interests, they have been relying on one another
to boost numbers and awarenress during protests throughout the region. The student’s families have not been
satisfied with official explanations of the missing students. On February 6, an estimated 20,000 people protested
in Chilpancingo, demanding that authorities continue searching for the missing children. The Mexican
government brought Argentinian forensic specialists to examine the remains. On February 9, the Argentinian
experts raised concerns over the Mexican chain of custody, indicated the remains were badly damaged, and
recommended sending to Austria for further examination. Demonstrating the growing distrust between the
population and the state government, many locals believe the conspiracy that Mexican Army is secretly holding
the missing students prisoners. On 3 March, the Mexican government requested US Justice Department and
Mexican civil rights consulting group MCRAG for support in reaching justice.
The rising distrust of security forces, political officials, and criminal activity have contributed to the formation of
self-defense militias. These militias’ staff road checkpoints, stood guard of local schools, and listen to local
concerns, essentially filled the vacuum of power created by mistrust of official law enforcement. The creation of
the self-defense militias in conjunction with increasingly powerful teachers unions have evicted of mayors from
their respective town halls, blockaded major highways, robbed tollbooths, and expressed their intent to disrupt
the July elections.
Frustrations over the missing students combined with the Mexican government’s inability to pay teachers
erupted into protests on local companies and government facilities. On February 19, ten people were injured in
an attack on the Coca-Cola offices in Chilpancingo. College students and unionized teachers hurled gas bombs
at the facility, hijacked vehicles, looted products, and took two employees hostage for several hours. Safety
concerns for drivers and vehicles caused Coca-Cola to suspend deliveries to the surrounding community until
the company feels the security environment becomes more favorable. On February 24, approximately 2,000
protestors attempted to blockade the Acapulco Airport, chanting about the missing students and unresolved pay
issues, and approximately 100 protestors were detained.
On February 25, clashes between 4,500 protestors and police in Acapulco turned violent when protestors
commandeered a bus and proceeded to drive it into the police line, kill one man and injuring seven officers.
Retired school teacher and protestor Claudio Castillo Pena was killed and 15 other demonstrators were injured.
Pena was a founding member of a teachers union known as the State Coordinator of Teachers of Guerrero
(CETEG). Approximately 94,000 CETEG employees have allegedly not received their salaries this year. On
February 27, fall-out from the handling of the case and the continued violent protests caused Mexico's attorney
general Jesus Murillo to resign. On March 3, the Mexican government confirmed the appointment of Arely
Gomez as new Attorney General. While the teacher’s unions have temporarily hi-jacked the momentum of the
missing students protestors, the union is focused on making promotion within Oaxaca based upon protest
involvement, which the federal government rejected on February 28 in preference of their current policy of
advancement through competitive examinations.
While the involvement of the US Department of Justice in the case of the 43 missing students will add an
additonal level of credibiltiy and is a vital step in the conflict resultion, the Mexican government will need to
increase transparency and allow family members of victims to tour facilities where the students are allegedly
being held. This will allow the Mexican government to separate the families from the union protestors, who are
using the tragedy and its supporters for political leverage. It is likely that under increased human rights scrutiny,
the Mexican government will capitulate to some of the teachers demands, to de-escalate the conflict and lower
the public profile within the region.
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Contact Information
For more information on how our services can support your
business in Mexico contact:
Email John Kewell
John Kewell
Regional Director, Latin America
GardaWorld Information Services
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