August 2010

Corporate fraud increases significantly in Mexico during the economic crisis

By Ramiro Alonso
El Universal

The recent global economic crisis contributed to a 55.5 percent increase in corporate fraud committed in Mexico between 2008 and 2010, ranking Mexico as the country with the most fraud in Latin America.

According to the 2010 Survey of Fraud by KPMG Consulting, white-collar crimes in 2008 cost 11.7 billion pesos ($896.34 million) in damages to the Mexican economy. Two years later, the total amount of corporate fraud amounted to 18.2 billion pesos ($1.39 billion).

In the last 12 months, the average amount stolen in each incident was $850,000, considerably higher than the $650,000 for all companies operating in Latin America.

"The results of the survey show a worrying reality," said KPMG managing director Arturo del Castillo.

In Mexico, 75 percent of businesses reported being victims of various types of fraud in the last twelve months, he said. Economista

www.eluniversal.com.mx/finanzas/81567.html

72 dead bodies found on Tamaulipas ranch

CNN - The Mexican Navy discovered 72 dead bodies on a ranch Tuesday in the northeastern state of Tamaulipas. The bodies, 58 of which were men and 14 women, were found above ground in a section of a ranch about 14 miles from the town of San Fernando. The Navy called it one of the largest discoveries of dead bodies in Mexico's 4 year-old war on organized crime.

www.cnn.com/2010/CRIME/08/25/mexico.dead.bodies/

Groups demand action to end violence against press

Latin American Herald Tribune - Four media unions joined several magazines and journalism foundations in calling Tuesday for "forceful” action to end the “atmosphere of affronts and violence” against Mexico’s journalists and defend freedom of expression.

www.laht.com/article.asp

Fund for Mexican real estate raises $293 million

Market Watch - Prudential Real Estate Investors announced Wednesday that qualified investors have invested $293.3 million (3.69 billion pesos) in PRUMEX Industrial III, a fund created to invest in industrial real estate throughout Mexico. www.marketwatch.com/story/prei-latin-america-raises-more-than-290-million-for-mexican-industrial-strategy-2010-08-24

Axtel drops most in four months on economic concerns

Bloomberg - Axtel, the wireless carrier that operates exclusively in Mexico, dropped the most in four months on concern it will be hurt more by a slowdown in Mexico’s economic recovery than competitors with international sales.

www.businessweek.com/news/2010-08-24/mexico-s-axtel-drops-most-in-four-months-on-economic-concerns.html

Agency puts conditions on Mexichem purchase

Dow Jones - Mexico's antitrust regulators said Tuesday that chemicals concern Mexichem can buy two plastics units from Cydsa if it agrees, among other things, not to seek compensatory tariffs on competing imports. The Federal Competition Commission said Mexichem has 30 days to accept or appeal the ruling.

online.wsj.com/article/BT-CO-20100824-713288.html

Cemex tumbles most in seven months

Bloomberg - Cemex, the largest cement maker in the Americas, dropped the most in seven months in Mexico City trading after plunging sales of existing U.S. homes signaled cement demand might miss expectations. 

www.bloomberg.com/news/2010-08-24/cemex-declines-in-seven-months-on-speculation-cement-demand-will-falter.html

Informal economy swells despite recovery

Reuters - The ranks of sidewalk vendors, house cleaners and street-corner cooks are swelling in Latin America's No. 2 economy as out-of-work Mexicans turn to uncertain jobs to survive through a slow economic recovery. While the overall unemployment rate has floated roughly between 5 and 6 percent in the last eighteen months, the share of Mexicans laboring in the informal sector has climbed.

www.reuters.com/article/idUSN2425351120100825

Mexico buys drones, might use to seek out pot

Reuters - Mexico has purchased an unspecified number of Israeli-made Hermes 450 unmanned drone aircraft, the government said, which might be used for spotting remote drug fields as officials fight powerful cartels. According to a filing, the government paid $23.25 million for the aircraft.

www.reuters.com/article/idUSTRE67N67320100824

Stocks plunge, peso weakens on U.S. growth worries

Dow Jones - Mexico's stocks posted their biggest drop since late June and the peso extended its slide against the dollar on Tuesday, after a surprisingly weak U.S. housing report added to mounting evidence the economy of Mexico's biggest trading partner might be slowing faster than forecast.

online.wsj.com/article/BT-CO-20100824-712844.html