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Audit confirms no funds missing

4 September, 2007Detailed report proves allegations against Gómez are unfounded and fraudulent

GENEVA/MEXICO:  An independent audit of a $55 million fund owned by the National Miners' and Metalworkers' Union (SNTMMSRM) in Mexico shows all funds are accounted for, exonerating SNTMMSRM general secretary Napoleón Gómez Urrutia of all charges of theft or misappropriation of funds.

"This is a powerful affirmation for Napoleón, the union, and labour leaders around the world who have repeatedly denounced the false charges levied against Napoleón," said International Metalworkers' Federation general secretary Marcello Malentacchi. "Not only does this audit prove that the charges raised against Napoleón are unfounded and fraudulent, but it highlights just how far Grupo Mexico and the Mexican government will go to seize control of the SNTMMSRM."

 The audit was commissioned by the IMF and conducted by Horwath Berney Audit S.A. in Geneva, Switzerland.

Representatives from the SNTMMSRM, United Steel Workers, AFL-CIO and the IMF held a press conference in Mexico City announcing the audit findings and calling on the government to:

  • immediately release all frozen accounts belonging to Gómez and the union;
  • drop all charges still pending against Gómez;
  • prosecute in a court of law, immediately and transparently, all those responsible in the corruption of documents and facts; and
  • investigate Grupo Mexico's involvement in the recent murder of Reinaldo Hernandez González, a miner and SNTMMSRM member.

Documents including the auditors' report, an Executive Summary of the audit report, and a statement signed by 17 members of the IMF Executive Committee was delivered to Mexican President Felipe Calderón and the governors of two Mexican states where charges against Gómez are still pending. Solidarity actions in front of Mexican embassies throughout Latin America are scheduled to take place on September 5.

The audit is in response to a government investigation into illegal use of union funds. In February and March 2006, the Mexican government used falsified documents to publicly accuse Gómez of embezzling an unspecified amount from the $55 million fund owned by the union. The government removed Gómez from his position as general secretary, imposed an appointed replacement, and seized all personal assets and those of the SNTMMSRM.

The multi-million dollar fund is the result of an agreement made dating back almost 20 years. In 1989 and 1990, the Mexican government sold three mines to Grupo Mexico. The deal included payment to the SNTMMSRM, which at the time totaled US $31 million. For 15 years, Grupo Mexico refused to honour the deal. Then, in January 2005, the company was finally forced to pay an adjusted amount of US $55 million. To date, accounts remain frozen and charges are still pending against Gómez at the state level. However, similar charges filed in federal court against Gómez have been dropped.

"It's criminal," Malentacchi added."Grupo Mexico and the Mexican government must be held accountable to the law, the very law they so blatantly manipulate to their advantage and profit at the expense of workers' lives."

To request a copy of the audit brief, contact Kristyne Peter at the IMF in Geneva. Call +41 22 308 5031 or email: [email protected]