MEXICO CITY, Feb 5 (Reuters) – Mexican authorities on Thursday arrested the mayor of Tequila, the birthplace of tequila, on suspicion of colluding with the Jalisco New Generation Cartel (CJNG) to extort major distillers.
The case exposes the dangers companies face when operating in Mexico, particularly in the tourist and industrial hub that supports a multibillion-dollar industry but is also plagued by cartel violence.
Authorities said Mayor Diego Rivera was detained in the federal raid along with the town’s security director and the head of the public works and land registry offices. Security Minister Omar Garcia Harfuch said the group led a corruption ring targeting beer and tequila producers in the city.
Investigators said in December that Becle, the world’s largest tequila producer, was targeted in their scheme. Producer Jose Cuervo filed a lawsuit accusing the mayor’s administration of imposing exorbitant property taxes of up to 20 times the legal rate and imposing fines of more than 60 million pesos ($3.45 million) while withholding licenses and trying to close one of its factories.
State authorities intervened, and Jalisco’s governor said at least 10 companies had filed complaints against local authorities.
Becle did not immediately respond to a request for comment. The Tequila Regulatory Commission said it has no position on the matter.
Officials allege that Rivera’s network not only extorted businesses but also diverted public funds and collaborated with the CJNG, one of Mexico’s most powerful and violent criminal organizations.
Rivera had previously come under scrutiny after a local concert featured a projected image of “El Mencho” the drug cartel’s fugitive leader Nemesio Oseguera.
(1 USD = 17.3993 Mexican Pesos)
(Reporting by Lizabeth Diaz and Natalia Siniawski; Editing by Rod Nickel)