Mexican mayor arrested over extortion of tequila producers

Mexican mayor arrested over extortion of tequila producers
People walk around the town in Tequila, Jalisco, Mexico, 10 April, 2018.
REUTERS/Carlos Jasso

Mexican federal officers detained Mayor Diego Rivera on Thursday during coordinated raids that also led to the arrest of the municipality’s security director and the heads of public works and the land registry.

Security Minister Omar Garcia Harfuch said the group ran a corruption scheme that targeted beer and tequila producers in Tequila, birthplace of the agave spirit and centre of a multi-billion-dollar industry.

Investigators said in December that Becle, the world’s largest tequila producer and owner of the Jose Cuervo label, had been among the companies affected.

The firm accused the mayor’s administration of imposing property taxes at up to 20 times the legal rate and issuing a fine exceeding 60 million pesos while withholding permits and attempting to close one of its plants.

State officials intervened, and the governor said at least 10 companies had filed complaints.

Becle did not immediately respond to requests for comment, while the Tequila Regulatory Council said it had no position on the case.

Officials allege Rivera’s network not only extorted businesses but also diverted public funds and collaborated with the Jalisco New Generation Cartel, described by authorities as one of the most powerful and violent criminal organisations in the country.

Rivera had previously drawn scrutiny after images of the cartel’s fugitive leader, Nemesio Oseguera, known as “El Mencho”, were projected during a local concert.

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