Just hours after we sent out last week’s edition, Mexico’s Foreign Affairs Minister announced a breaking story via Twitter: Former Defense Minister Salvador Cienfuegos was arrested at Los Angeles Airport. We’ve got you covered in today’s edition with a recap of his charges and explanation of whether this is a win or not for AMLO.
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Former Defense Minister arrested on drug trafficking charges
Reuters / Vice
Above: Former Defense Minister Salvador Cienfuegos (left) and former president Enrique Peña Nieto (right). The good old times.
What (the heck) happened? Last Thursday, Salvador Cienfuegos, who was Mexico’s Defence Minister from 2012 to 2018 was arrested at LAX... Why? According to US prosecutors, Cienfuegos used his power to protect the H-2 cartel (more info about them here). Protect in what way? Evidence, including “thousands of Blackberry Messenger communications” show that the general, who was known as El Padrino (the Godfather), made sure military operations did not target the cartel, focusing instead on rival groups. In the end, Cienfuegos helped H-2 smuggle “thousands of kilograms of cocaine, heroin, methamphetamine and marijuana” into the US.
Is this a win for AMLO? As a President who has declared that Mexico was a narco-State under previous governments, the arrest would seem to prove him right… but, that’s just part of the story. The arrest places AMLO in an awkward position to say the least. He was completely sidelined by the US government, not knowing about the investigation until two weeks before the arrest. Even worse, US authorities opted to wait for over a year for Cienfuegos to travel to the US, instead of asking Mexican authorities for his arrest. Lopez Obrador also said that only after receiving evidence against Cienfuegos, will he open his own investigation. This could hardly be considered a win for AMLO.
“Why is it that it’s just the people in Mexico who took part in these acts being accused or implicated, and (the DEA) aren’t criticizing themselves, reflecting on the meddling by all these agencies in Mexico?” Lopez Obrador said. “They came into the country with complete freedom, they did whatever they wanted.” Damnnnn
Plus, the revelations will probably tarnish the military’s reputation, which is relevant because AMLO has been a cheerleader of the military since taking office, entrusting them with tasks like building a $3.2 billion airport and running the cartel infiltrated ports.
What will happen to Cienfuegos? On Tuesday, the retired general was denied bail by a judge, who said that his ties to Mexican elite and drug cartels pose a significant flight risk. The general’s lawyer had requested a $750,000 bail, calling it his clients life savings - pobrecito. As Cienfuegos was indicted by a grand jury in New York, the judge is expected to order his transfer from LA next Friday (tomorrow). If indicted, he will face at least 10 years. He is 72 years old. “It wouldn’t take a long sentence to be a life term”, said the judge on his bail hearing.
🦠 As early signs of a new outbreak appear, Mexicans push hard for a return to normal
Yesterday, Mexico reported the highest count of new cases (+6,845) since August 13th. As new cases surge, federal and local authorities will be facing a triple threat. (1) According to the Coronavirus Czar, Hugo López-Gatell, as temperatures start to go down, the virus will become more effective. (2) Influenza season has also already started, potentially pushing the limits of the health system once again. Finally, (3) cultural and religious holidays that involve mass gatherings, like el Día de Muertos (Nov 1-2) and el día de la Virgen de Guadalupe (Dec. 12th) are coming up. Authorities are already in talks with the Catholic Church to modify their celebrations.
However, the federal government’s anti-lockdown stance might fail to prevent citizens from putting themselves at risk. Just last weekend, over 100 people are believed to have been infected at a wedding in the northern city of Mexicali Reuters
Above: People walking in Mexico City… ...and please, take it easy on the man. Looks like he's had a rough day © Reuters / Carlos Jasso
🍰Newbie bakers create wildly popular Instagram business
Finally some good news from the pandemic in the form of entrepreneurship and baked goods. An out of work artist couple in the Roma Norte neighborhood of CDMX turned a new baking hobby into a bustling business through the magic of Instagram. Although the couple aren’t from Mexico (Peru and Colombia) they are keeping up with a Mexican tradition of bringing home cooked food to the streets in times of financial need. If they were already struggling to keep up with demand, this NYT feature (not to mention being in this newsletter) is about to blow up their DMs with orders. We wish them the best of luck! Find them at @cuarentenabaking
The New York Times
😈 Congress kills 109 public funds previously used for science and government disaster relief
On Tuesday, the Senate passed a law that will eliminate 109 trust funds (or fideicomisos). The funds managed and allocated over $3.2 billion in government resources to multiple beneficiaries, from athletes to scientists, journalists to natural disaster victims. AMLO promoted the bill by arguing that the fideicomisos were corrupt - which he was probably right about. Even though he has promised that those who need the resources will continue to receive them, opponents are skeptical as there is no clear plan on how exactly the government will do this. Some even say the administration just wants the money to use for spending needs. Associated Press
💔 Why are pension funds pissed at AMLO?
As Mexico’s private pension funds (or Afores) charge exorbitant commissions compared to other countries, AMLO sent out a bill to halve the fees to 0.54 from 0.92. The reduction could increase workers savings by 12%. The bill is part of a reform to the pension fund system, that as of today, workers would expect to retire on just 30% of their salaries (no bueno at all). In case you were wondering, pension fund owners are not happy about these changes Shocker. Financial Times
📈 Top bank more than doubled its economic growth forecast for 2021… but the expected 4.1% growth for next year is still mediocre compared to the expected 9% decline in 2020. Record remittances and a likely Biden win are behind this optimism. Bloomberg
😞 🙂 Mexican court blocks ex-president's bid to register new party. It was a sad sad day for anti-LGBT activists and pro-lifers. Associated Press
💸 Amazon announces $100 million logistics investment in 3 Mexican cities
Just like this girl’s birthday party got ruined by her evil sister, Morena’s Sunday was rained on by the PRI in the Coahuila and Hidalgo local elections. In Coahuila, all of the local congressional districts were won by the PRI. Although it’s no surprise that the PRI is strong in both states - no governor from the opposition has ever won there - you would think that the never-ending list of corruption scandals the PRI has had would have impacted the electorate.
FYI: if you haven’t seen the video of the two girls fighting over a birthday cake, check them out.
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AMLO’s quote: “Even if it’s like taking tafil, you will continue to hear me speak slowly and with pauses***”
Tafil is a medicine used to treat anxiety and depression, among other issues. Users of Tafil are known to speak very slooowly (like AMLO).
Hablar de corrido means to talk without any pauses.
Some context: AMLO was talking about the detention of Salvador Cienfuegos and declared that he will be the only person of his government to address the matter.