Mexico President Enrique Peña Nieto ,Juan Armando Hinojosa,Grupo Higa SA salinas de gortari
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Salinas de Gortari
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http://online.wsj.com/articles/mexico-digs-into-ties-between-leader-builder-1417657132
Mexico Digs Into Ties Between Leader, Builder
Little-Known Government Deals Won by a Contractor Seen Close to President Peña Nieto Emerge, as Opposition Calls for Probes
MEXICO CITY—A contractor who built and holds the title to President Enrique Peña Nieto ’s family home has won a series of high-profile government contracts since the Mexican leader came to power two years ago, projects increasingly under scrutiny by opposition lawmakers and foreign investors.
The contractor, Juan Armando Hinojosa, is at the center of a political scandal that is rocking the Peña Nieto administration amid questions over the men’s relationship and whether favoritism played a part in Mr. Hinojosa’s companies winning government contracts worth hundreds of millions of dollars.
Until now, much of the focus has been on contracts Mr. Hinojosa won while Mr. Peña Nieto was governor of the state of Mexico and on the contractor’s participation in a deal to build a bullet train that the government canceled last month after competitors said the process was rushed.
Much less known are Mr. Hinojosa’s share of a $3.4 billion contract to build Latin America’s longest waterway and his participation in a $460 million project for a new museum in the colonial city of Puebla, according to public records reviewed by The Wall Street Journal.
Other little-known contracts won by units of Mr. Hinojosa’s holding company Grupo Higa SA include several federal highway projects, a no-bid contract to revamp the presidential hangar at the Mexico City airport, and contracts to ferry around government officials in private jets, the public records show. Another of his companies is part of a bidding group that seeks to build a new $9 billion Mexico City airport.
Mr. Hinojosa declined to comment and hasn’t made any public remarks on the matter. A Grupo Higa spokesman said the company respected the government’s decision to revoke the train contract.
Mr. Peña Nieto’s office has rejected any suggestions of favoritism. “Projects awarded by the government are based on rules that seek to guarantee competitive, fair and transparent processes for all the participants,” Mexico’s presidency said in a statement in response to questions by The Wall Street Journal.
But the revelations are hurting the president politically. A poll this week showed Mr. Peña Nieto’s approval rating sagging to 39%, the lowest for a Mexican leader in nearly two decades.