Siapa charged with squandering US$30mn of IDB loan - report

Friday, May 13, 2011

Mexico's Guadalajara public water and sewerage utility Siapa has been charged with misusing some 348mn pesos (US$29.6mn) of an over 1bn-peso loan it received from IDB, local daily Milenio reported.

Of the irregular expenses, 280mn pesos were allegedly used to invest in the stock market, where the utility lost 20mn pesos, according to the report.

Three executives have been blamed for the irregular spending, including former Siapa general manager Rodolfo Ocampo; former finance director Mario Alberto Juárez; and former treasurer Diana Julieta Rodríguez, the paper said.

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The loss means the company will have to make over 9.8mn pesos in extra loan payments, Milenio said.

Ocampo will remain in his position as Jalisco state governor Emilio González's advisor during the investigation, according to the report.