Mexico: Agronitrogenados case against Lozoya and Ancira stalled by appeals

The criminal proceedings against former Petróleos Mexicanos (Pemex) director Emilio Lozoya Austin and businessman Alonso Ancira Elizondo, owner of Altos Hornos de México (AHMSA), concerning the Agronitrogenados fertilizer plant case remain stalled. The Attorney General's Office (FGR) reported that two appeals filed by Lozoya's defense team are currently awaiting resolution by a Collegiate Tribunal.

The FGR also expressed concern that Ancira has not fully met the terms of his reparation agreement, which allowed him to regain his freedom. He reportedly still owes more than 112 million pesos (approximately $6.6 million USD) from the agreed-upon settlement.

Pemex initially paid $275 million USD for the Agronitrogenados plant. However, a valuation by the National Institute of Public Administration and Property Appraisal (INDABIN) determined a new plant would cost $58.3 million USD, indicating an overprice of $216.6 million USD. This overprice was set as the amount for reparations.

Ancira proposed a reparation agreement for this amount, offering 99% of Grupo Acerero del Norte's shares and other assets as collateral. Pemex's board approved the agreement in February 2021, and a control judge approved it in April 2021. The payment was structured in three installments, with the first two paid in November 2021 and November 2022, totaling $104.1 million USD.

The final payment of $112.4 million USD was due on November 30, 2023. When Ancira failed to make this payment, the FGR requested the resumption of criminal proceedings on December 5, 2023. Ancira cited financial restructuring and capitalization issues within his company as reasons for the delay, requesting an extension. Pemex's board and a control judge subsequently approved an extension until November 30, 2024, with a modified agreement signed in March 2024.