New Morality

De la Madrid fulfills a pledge

During the election campaign last year Presidential Candidate Miguel de la Madrid pledged to bring about a "moral renovation" of Mexican society, including the investigation of former officials for corruption. In his seven months as President, however, De la Madrid has been criticized for moving slowly against suspect members of the administration of his predecessor, Jose Lopez Portillo, whose government was widely regarded as corrupt. Last week, in a move that created a nationwide sensation, the government accused Jorge Diaz Serrano, 63, former head of the state oil monopoly, Petroleos Mexicanos (Pemex), and the "architect" of Mexico's oil boom, of corruption. The charge: defrauding Pemex of $34 million in connection with the purchase of two Belgian natural gas tankers in 1980.

A lifelong friend of the former President's, Diaz Serrano was once considered a possible successor to Lopez Portillo. As a wealthy oil contractor in the 1960s and '70s, he had at one time been in partnership with Vice President George Bush in the Houston-based Zapata Oil Co. Later, after Lopez Portillo appointed him to be director-general of Pemex, Diaz Serrano guided the huge oil exploration program that, in just five years, made Mexico the world's fourth largest oil producer.

As Pemex chief, the flamboyant Diaz Serrano often dealt bluntly with the U.S. As he once put it, "We aim to deal with the U.S. according to our program of energy." In 1978, while he was running Pemex, Mexico abruptly canceled a natural gas sale after the U.S. refused to meet the Pemex price. In June 1981, after the worldwide oil glut had forced Mexico to lower its export price, Diaz Serrano suddenly resigned from his Pemex post after his enemies charged that he had not cleared the price cut with Lopez Portillo.

Last week's announcement astounded Mexican politicians, not only because of Diaz Serrano's prominence but also because of his closeness to Lopez Portillo. Many Mexicans saw the move as an indication that De la Madrid would press similar charges against other members of the former administration. The word in Mexico City, however, is that the new government has decided at the "highest level" not to press for any legal action against Lopez Portillo himself. This file is automatically generated by a robot program, so viewer discretion is required.