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10 March, 2016

US accused of imposing Mexican President to control oil

Andres Manuel Lopez Obrador's leftist Morena party told teleSUR that the United States imposed President Enrique Peña Nieto on Mexico and have been pressuring him to privatize the country's state-owned oil companies Pemex and Federal Electricity Commission in order to pave the way for their multinationals to control the nation's oil and energy sectors.

The U.S. imposed Peña Nieto on Mexico as they knew he would push forward reforms that would see both Pemex and the CFE privatized for their own benefit,” Morena party official Elisa Sanchez told teleSUR. “Of course, Peña Nieto and his allies in government are complying with Washington's demands seeking personal benefits as well.

Pemex was partially privatized to line the pockets of government officials as they look to sell off chunks of the business to private investors, mainly from the United States, according to Sanchez of the National Regeneration Movement, which is headed by two-time presidential candidate Lopez Obrador, a harsh critic of Peña Nieto's intentions to privatize both companies.

Pemex announced on Tuesday that it had set up lines of credit with Mexico's development banks to improve liquidity and start paying back billions of dollars in debt to suppliers, as the firm seeks to repair finances it says were severely diminished by the drop in crude oil prices.

The oil giant, which is one of the federal government’s main sources of revenue, deferred debt repayments to dozens of suppliers last year and has now racked up debt to the tune of 47 billion Mexican pesos or US$2.8 billion. So far, it has only paid back aabout US$1.5 billion to its creditors.

Sanchez, however, said it is all a farse stating that, “Neither company is truly in debt or in financial crises ... Peña Nieto's government is manipulating the financial situation of both companies to justify privatization. Basically, they've ransacked the money or disappeared to speed up privatization.

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