Mining a Frequent Target of Corruption: COPARMEXBy Fernando Mares | Fri, 07/08/2022 - 13:52
Although López Obrador’s government has been focused on fighting corruption, work still remains. In this context, mining is one of the most affected industries, according to a study carried out by the National Employers Confederation (COPARMEX)
In a joint effort to identify how many of their affiliated members have experienced or been a witness of a corruption act, Data COPARMEX and Mexicans Against Corruption and Impunity (MCCI) carried out a study where 39 percent of the interviewed companies declared they had experienced corruption in 1Q22, similar to the results seen in 3Q18 and close to the historical maximum of 42.2 percent of 1Q18.
Over the last two years, in 21 of the 32 states, the percentage of COPARMEX affiliates that experienced some corruption act grew. The states that reported more corruption acts were Chiapas with 61.4 percent, Quintana Roo with 57.6 percent and Nuevo Leon with 57 percent. The states with lower corruption levels were Baja California Sur with 21.2 percent, Coahuila with 21.3 percent and Nayarit with 22.2 percent.
According to interviewed companies, state authorities tend to be more corrupt, as 55.9 percent of companies declared that state authorities incurred in corruption acts, followed by municipal authorities with 54 percent, while federal authorities scored 46.2 percent.
The sectors that suffer the most from corruption are Supporting Services to Business and Waste Management with 57.9 percent, the Construction sector with 55.7 percent and the Mining Industry scoring 55.6 percent. MCCI reported that big companies are more likely to experience corruption acts followed by medium sized companies, with 46.2 percent and 45 percent respectively.
While mining appears to be among the sectors most burdened with corruption, 16 mining companies made the Corporate Integrity 500 Index published by MCCI, which aims to highlight companies’ commitment to anti-corruption practices. Industrias Peñoles and Fresnillo both passed with flying colors with 100/100 scores.
Over 53 percent of COPARMEX’s members consider corruption acts frequent in the country. According to the survey, companies that are forced to incur in corruption acts do it to speed up permit granting, avoid fees, sanctions and/or closures. However, only 19 percent of the members that suffered from corruption denounced it, while 75 percent of them did not out of fear of retribution or because they felt that this would not make a difference.