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Arrest orders issued for three Banamex employees

Bnamericas Published: Monday, June 23, 2014

Mexico's attorney general office has ordered the arrest of three employees of Banamex, the local unit of Citigroup, in relation to the fraud case involving oil services firm Oceanografía.

"These are no low-ranked employees. In one case at least, we are talking about someone who is or was a high-ranking employee," attorney general Jesús Murillo told a special commission of senators, according to local press.

Oceanografía's CEO Amado Yáñez was arrested on May 29 in connection with the case and posted bail on June 3.

Murillo said that more arrests were likely to follow.

In February, Banamex discovered that it had provided US$400mn in credit to Oceanografía based on allegedly falsified contracts with Mexican state oil firm Pemex, while two other Mexican firms have since been implicated.

Citigroup fired four senior Banamex executives and seven other employees in May, while the unit remains under investigation by the SEC as well as the FBI.

Last month, rating agency Moody's de México downgraded certain Banamex ratings due to apparent deficiencies in the company's risk management and auditing functions brought to light by the case.

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