Playa del Carmen, Quintana Roo — A corruption scandal erupted inside the municipal government Thursday, leading to the forced removal of the urban development director and the resignation of the city treasurer, officials confirmed.
Treasurer Javier Regalado Hendricks submitted his irrevocable resignation on May 21, hours after police officers forcibly removed Urban Development Director Óscar Emmanuel Gallardo Escamilla from his office. The city council is expected to name Guillermo Brahms, a former local deputy for the Green Ecologist Party of Mexico (PVEM) who served as city manager, as Regalado’s replacement on Friday.
According to council members, Regalado failed to meet financial targets and left the municipality in serious fiscal trouble. He is blamed for poor revenue and expenditure planning during the first year of Mayor Estefanía Mercado’s administration, including an unrealistic revenue growth forecast that went unmet. That miscalculation triggered a financial crisis in 2025, forcing the city to take out a 125 million peso short-term bank loan — without city council approval — to cover a budget shortfall exceeding 180 million pesos.
Regalado also proposed this year’s wave of fee increases for municipal services and permits, as well as steep hikes in property tax valuations that raised the tax burden on residents. Despite squeezing taxpayers, the administration remains in financial distress, and sources say it is on the verge of taking on additional public debt.
Beyond fiscal mismanagement, Regalado is accused of leading a corruption network operated through his brother, Arturo Regalado Hendricks, who allegedly ran businesses directly tied to the treasurer’s office. The network is said to have extorted construction companies, tourism businesses, local shops, and street vendors.
Rumors of a massive embezzlement — possibly up to 1 billion pesos — have circulated, along with reports that Mayor Mercado herself spends 20 million to 40 million pesos monthly in municipal funds to pay political allies. An audit completed about 10 days ago, after three months of investigation, is believed to have triggered Regalado’s downfall.
The crisis came to a head Thursday when municipal police entered the Urban Development Department offices and forcibly removed Gallardo Escamilla. Regalado and his brother tried to intervene but were warned they would be arrested if they obstructed the operation. Hours later, Regalado resigned.
