New Ties Emerge Between Mexico Government and Builder Armando Hinojosa Juan Montes - The Wall Street Journal
go to original December 12, 2014

President Enrique Peña Nieto, left, sat with minister Luis Videgaray in Mexico City last month. Both are close to a contractor who won big government projects. (Mexican Presidency/Zuma Press)

FT.com Update: Luis Videgaray says he is willing to submit to an independent investigation — maintains that he acted honestly and legally.

MEXICO CITY - Mexico’s finance minister bought a home from a prominent government contractor who is at the center of influence-peddling allegations roiling President Enrique Peña Nieto’s administration, documents viewed by The Wall Street Journal show.

Property records show that the minister, Luis Videgaray, widely seen as the driving force behind Mexico’s recent economic overhauls, bought the house in an exclusive golf resort outside the picturesque town of Malinalco, in the central State of Mexico, from Bienes Raíces H&G SA.

The firm, commercial records show, is owned by Juan Armando Hinojosa, whose companies have won hundreds of millions of dollars’ worth of public-works projects during Mr. Peña Nieto’s time as governor of the State of Mexico and during his current administration.

Mr. Videgaray isn’t accused of an illegal act. But the transaction adds to the appearance of conflicts of interest that have damaged Mr. Peña Nieto’s credibility and popularity after he came to office promising a break from the clubby practices of his ruling Institutional Revolutionary Party’s past. It also is a fresh example of the extensive business and personal links between the contractor and senior government officials.

Read the rest at The Wall Street Journal

Mexico's Finance Minister Luis Videgaray admits the country is in "crisis," reports CNBC's Michelle Caruso-Caruso. (CNBC/Dalvin)

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