Federal Authorities Investigate Pemex Officials, Employees for Involvement in Fuel-Theft

SourceMex Economic News & Analysis on Mexico, August 5, 2009 | Go to article overview

Federal Authorities Investigate Pemex Officials, Employees for Involvement in Fuel-Theft


In late July, federal law-enforcement authorities seized key documents from the headquarters of the state-run oil company PEMEX that could implicate some officials in an elaborate scheme in which millions of dollars worth of fuel were siphoned off from pipelines. The raid by law-enforcement personnel from the Procuraduria General de la Republica (PGR) and other agencies suggested that a high level of corruption still exists in the company. Fuel theft costs PEMEX close to US$2 billion per year. PEMEX inspectors detected at least 396 illegal connections to its fuel pipelines in 2008.

Energy Secretary Georgina Kessel Martinez, speaking to reporters in the aftermath of the raid, promised that anyone found guilty "would face the full consequences of the law." But Kessel held out little hope that the practice would be eradicated anytime soon, given the government's technological deficiencies. "This is a process that is going to take some time because PEMEX not only needs to install new technology but also to conduct an extensive analysis of its system of ducts and create better tools to combat fuel theft," said the energy secretary. She acknowledged that fuel thieves are using more sophisticated technology than that in use by PEMEX.

Kessel said PEMEX is planning to spend over 1 billion pesos (US$76 billion) between now and 2012 to install a new system to monitor its ducts.

There was no immediate comment from PEMEX director Jesus Reyes Heroles, but the company issued a terse statement. "At this time the internal-audit office, with the help of federal police, is seizing computer equipment and documents belonging to the company's security directorate," said a company press release.

The Mexico City daily newspaper La Jornada said the PGR is investigating at least nine Mexican customs inspectors and 20 PEMEX employees suspected of involvement in an elaborate fuel-theft scheme. The customs inspectors allegedly falsified paperwork for tanker trucks carrying the stolen diesel or natural-gas derivatives into the US. The paperwork describes the cargo as "chemicals."

Authorities are also probing 100 business owners thought to have participated in the process for at least four years by laundering funds produced from the fuel theft.

Fuel theft has been a problem for PEMEX for at least a decade. In 2004, the administration of former President Vicente Fox launched a special operation to try to eradicate the practice (see SourceMex, 2004-03-10), but had little success. According to government investigations, the fuel theft is in operation at pipelines in all or most of Mexico's 31 states and the Federal District.

Corruption still prevalent at PEMEX

Critics say that the continuation of the practice is evidence that corruption is rampant at PEMEX. Some are pointing the finger at the petroleum workers union (Sindicato de Trabajadores Petroleros de la Republica Mexicana, STPRM), which has long been suspected of participating in the fuel-theft scheme. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Federal Authorities Investigate Pemex Officials, Employees for Involvement in Fuel-Theft
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.