Blackout in Paradise, Billionaire Fallout, and not a Tax-Evasion Déjà Vu
Mexico Decoded’s weekly briefing makes sense of the news that matters
1. Mexican Billionaire (Not Anymore)
Salinas Pliego, the owner of TV Azteca —an airwave concession granted by the state— owes $4 billion in unpaid taxes. He tried to negotiate a settlement with President Sheinbaum, but she flatly rejected the offer.
Decoding it:
Salinas is desperate. He’s already facing major legal headaches in the U.S., including contempt orders and disputes tied to AT&T. His fortune is valued at $5.5 billion. His numbers are starting to look shaky.
2. Blackout in Paradise
A massive blackout hit the Yucatán Peninsula, leaving 2.3 million people without electricity for 6 hours —including tourist hotspots like Tulum and Cancún.
Decoding it:
The government blames the private operator for failing to build transmission lines resilient to humidity. But the issue is aslo Mexico’s lack of redundancy. About 60% of its electricity comes from imported natural gas —mostly from the U.S.— with no backup in transmission routes. One break, and the lights go out.
3. Making Mexican Banks Mexican Again
After decades of U.S. ownership, Citibank announced it would sell Banamex, Mexico’s most historic bank, back to Mexican hands. Last week, it was confirmed that billionaire Fernando Chico Pardo will buy 25% of it and become chairman of the board.
Decoding it:
Citi decided to sell in 2022 as part of its global retreat from retail banking. Yet, the deal only moved forward once Banamex was restructured to be sold off in parts. Its previous sale in 2001 was a scandal: the finance minister nearly went to jail for allowing $3.5 billion in taxes to be dodged. This time (hopefully) taxes will be collected.
4. Historic Presidential Approval
One year in, President Claudia Sheinbaum boasts a 73% approval rating: one of the highest for any Mexican president at this stage.
Decoding it:
Sheinbaum’s popularity rests on her handling of Trump, social programs, and public safety. But warning lights are flashing. Her party has lost 15 points in partisan identification in recent months, driven mostly by corruption scandals involving several senators.
5. Mexico’s Supreme Court Breaks the Script
Mexico’s newly elected Supreme Court upheld the 2023 mining reform, rejecting challenges from corporations that argued its environmental rules violated their rights to new concessions.
Decoding it:
Observers expected all justices to back the reform, given their progressive credentials and election with support from the left-wing ruling party. Yet two voted in favor of the mining corporations—showing the government has less control over the Court than many assumed.