Mexico City — An investigation by Mexicanos Contra la Corrupcion y la Impunidad (MCCI) has revealed that the National Water Commission (Conagua) awarded contracts worth more than 2.314 billion pesos ($115 million) to a network of 10 companies allegedly linked to each other and lacking proven experience in hydraulic works. The network is centered on a company incorporated at a notary office of current Morena Senator Adan Augusto Lopez Hernandez.
According to the investigation, the company Ferroclin U&Q, considered the core of this business network, was incorporated in 2014 at a notary office when Lopez was still a public notary in Tabasco. The Tax Administration Service (SAT) included the company on its definitive list of companies that simulate operations, known as “factureras” (shell companies), in January of this year.
The report states that during the administrations of Andres Manuel Lopez Obrador and Claudia Sheinbaum, this network obtained 42 contracts related to strategic hydraulic projects, including work on the Santa Maria and Picachos dams in Sinaloa, as well as projects linked to the Yaqui people’s Irrigation District in Sonora.
MCCI asserts that nearly 80% of the funds allocated to these companies were awarded through Conagua’s Materials Management office, which was headed by Alejandra Icela Martinez Rodriguez, daughter of current Interior Secretary Rosa Icela Rodriguez, and later by Angel Manuel Medel Rios, a former member of the Presidential Adjutancy.
The investigation also documents that several of the companies share shareholders, administrators, managers, and legal representatives, and that in some contracting procedures they allegedly participated by simulating competition among themselves. According to the analysis, at least 10 contracts worth more than 537 million pesos show signs of such practices.
Furthermore, Ferroclin U&Q received more than 329 million pesos in Conagua contracts between 2019 and 2023, despite the SAT later determining that the company lacked sufficient assets, personnel, and infrastructure to carry out the activities it reported.
MCCI requested an official response from Conagua regarding the allegations. In response, the agency stated that information on the contracts is public and that any complaints about possible acts of corruption should be handled by the competent authorities.
As of now, no judicial investigations or sanctions have been announced in connection with the findings presented in the report.
