Corruption: Stealing the family silver

From mafia ties and drug trafficking to bribery and insider dealing, allegations of corruption have tainted numerous privatizations around the world. As governments, bankers and investors are learning, to create stable market economies it is necessary to do more than shift assets out of governments' hands. The process also needs transparent procedures to monitor into whose hands they fall - and to determine who reaps the benefits. Michelle Celarier reports.

When Enrique Molina Sobrino, one of Mexico’s wealthiest businessmen, tried to expand his empire by buying the state-owned Sugar Corp which Puerto Rico was hoping to privatize last year, charges of drug trafficking against him finally brought the sweet deal to a screeching halt. The accusations against Molina Sobrino, chairman of Consorcio Azucarero Escorpion and the Gemex (Grupo Embotellador de México) soft-drink-bottling company (Mexico’s biggest distributor for Pepsi-Cola), were made by Eduardo Valle, an intelligence officer in the Mexican justice department during the administration of Carlos Salinas de Gortari.

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