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Head of Mexico's powerful teachers' union arrested

Source : AP
Last Updated: Wed, Feb 27, 2013 04:00 hrs

The head of Mexico's powerful teachers' union was arrested at an airport near Mexico City Tuesday for alleged embezzlement, with federal officials accusing her of using union funds to pay for plastic surgery, to buy a house in San Diego and even to pay her bill at Neiman Marcus.

Attorney General Jesus Murillo Karam said that Elba Esther Gordillo, who has led the 1.5 million-member National Union of Education Workers for 23 years, was detained in Toluca on charges that she embezzled 2 billion pesos (about $160 million) from union funds.

The office didn't say whether Gordillo, a colorful woman long seen as a kingmaker and power-behind-the-scenes in Mexico, was arriving or leaving Toluca airport, or whether she was handcuffed. Murrillo said two other people were also arrested by did not name them.

The arrest of the 68-year-old Gordillo marks the downfall of a woman who rose from being a school teacher to one of Mexico's most powerful political operators, displaying her opulence openly with designer clothes and bags, bodyguards, expensive cars and properties including a penthouse apartment in Mexico City's exclusive Polanco neighborhood. She has been widely lampooned for her many plastic surgeries and depicted in political cartoons as ghoulish.

Meanwhile, Mexico's teachers are poorly paid and public education has long been considered sub-par.

"We are looking at a case in which the funds of education workers have been illegally misused, for the benefit of several people, among them Elba Esther Gordillo," Murillo Karam said.

Gordillo did not respond publicly to the accusations against her and was reportedly en route to Mexico City to appear before a judge.

Her detention came a day after President Enrique Pena Nieto signed Mexico's most sweeping education reform in seven decades into law, seeking to change a system dominated by Gordillo in which teaching positions could be sold or inherited.

Prosecutors said they had detected nearly $3 million in purchases at Neiman Marcus using those funds, as well as $17,000 in U.S. plastic surgery bills and the purchase of a million-dollar home in San Diego.

Assistant Attorney General Alfredo Castillo displayed a series of charts at the press conference with arrows detailing the allegations of illicit transfers from teachers' union accounts to personal accounts in the names of three union workers, Nora Guadalupe Ugarte Ramirez, Isaias Gallardo Chavez and Jose Manuel Diaz Flores, as well as a real estate company.

None were authorized to deal with finances. It wasn't clear if they were among those arrested.

"Between 2008 and 2012, there was systematic embezzlement of union accounts," Murillo Karam said.

Some funds eventually ended up in bank accounts in Switzerland and Liechtenstein. Castillo said that in one case they transferred $1 million to a Swiss account for a company owned by Gordillo's mother. Those funds were then used to buy a million-dollar house in the island of Coronado in San Diego.

The overhaul of Mexico's education system was Pena Nieto's first major proposal since taking office Dec. 1 and was considered a political blow to Gordillo.

Gordillo had organized a string of protests by teachers against the reform, which moves much of the control of the education system to the federal government from the teachers' union. Gordillo was elected to another six-year term as union leader in October.

The reform creates a system of uniform standards for teacher hiring and promotion based on merit instead of union connections. It also allows for the first census of Mexico's education system, which Gordillo's union has largely controlled for decades, allegedly padding the payroll with thousands of phantom teachers.

So great is the union's control that no one knows exactly how many schools, teachers or students exist in Mexico.

For years, she has beaten back attacks from union dissidents, political foes and journalists who have seen her as a symbol of Mexico's corrupt, old-style politics. Rivals have accused her of corruption, misuse of union funds and even a murder, but prosecutors who investigated never brought a charge against her.

She was expelled from Pena Nieto's Institutional Revolutionary Party in 2006 for supporting other parties' candidates and the formation of her own New Alliance party.

Gordillo's arrest recalled the 1989 arrest of another once-feared union boss, Joaquin Hernandez Galicia, known as "La Quina." The longtime head of Mexico's powerful oil workers union, Hernandez Galicia was arrested during the first months of the new administration of then-President Carlos Salinas.

Like Gordillo, Hernandez Galicia's power was believed to represent a challenge to the president, and his arrest was interpreted as an assertion of the president's authority. He was freed from prison after Salinas de Gortari left office.

In 1988, he criticized Salinas' presidential candidacy and threatened an oil workers' strike if Salinas privatized any part of the government oil monopoly, Petroleos Mexicanos, or Pemex. On Jan. 10, 1989, — about a month after Salinas took office — soldiers used a bazooka to blow down the door of Hernandez' home in the Gulf Coast city of Ciudad Madero.




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