UNEVEN PROGRESS ON MEXICO'S SECURITY REFORM

C O N F I D E N T I A L SECTION 01 OF 04 MEXICO 001308

SENSITIVE
SIPDIS

E.O. 12958: DECL: 12/21/2017
TAGS: PGOV PREL PINR MX
SUBJECT: UNEVEN PROGRESS ON MEXICO'S SECURITY REFORM
LEGISLATION

REF: A. 08 MEXICO 3099

B. MEXICO 1278

C. MEXICO 982

D. MEXICO 01224

E. MEXICO 873

Classified By: Political Minister Counselor Charles V. Barclay.
Reason: 1.4 (b),(d).


1. (C) Summary. Mexico's Congress, in a burst of activity
before the legislative session closed on April 30, approved a
number of key security initiatives that had been left pending
since the last session closed in December, including
narcomenudeo, asset forfeiture, the Federal Police law, and
the law for the Attorney General's Office (PGR. A number of
other security-related laws, however, will be left until the
next session starts with a brand new Chamber of Deputies in
September, including four packages submitted to the Senate by
President Calderon on April 23. Congress' security
accomplishments this session appear to be a mixed bag, and
their results, as always, will depend on how they are
implemented on the ground. End Summary.

CONGRESS' ACCOMPLISHMENTS
--------------


2. (C) Despite an increasingly acrimonious political
atmosphere in the run-up to the July elections and in the
midst of the H1N1 flu crisis, Mexico's Congress, in a final
flurry of activity before the legislative session closed on
April 30, approved -- sometimes with significant changes -- a
number of key security initiatives that had been left pending
since the last session closed in December. Amongst the most
important reforms are narcomenudeo, which defines punishment
for small-time drug dealers, asset forfeiture, the Federal
Police law, and the law for the Attorney General's Office
(PGR).

NARCOMENUDEO
--------------


3. (C) The new narcomenudeo law clearly defines the
distinction between
consumers, drug dependency and trafficking, but waters down
provisions that impose mandatory treatment for consumers
found to be in possession of small quantities. Unlike the
Calderon administration's first version of the bill (ref a),
the public prosecutor and health authorities can only
recommend a treatment option to an individual the first two
instances in which he or she is found to be in possession of
an illegal drug. (However, if the individual demonstrates
clear signs of drug dependency, either authority can remand
him or her to a treatment program.) On the third occasion,
treatment is mandatory. (ref b). The criteria for
"dependency" is poorly defined. The bill also raised the
maximum amount of permissible marijuana to five grams and
fixed the amount of opium at two grams, cocaine at 500
milligrams, and heroine at 50 milligrams. Persons who are
found to possess amounts that exceed these limits will be
determined to be street traffickers and could face 4 to 8
years in prison. The bill seeks to establish a division of
prosecutorial labor between state and federal law enforcement
authorities, giving the former jurisdiction over the
prevention of drug abuse and street sales, while reserving
for the latter authority to investigate and prosecute larger
sales and organized-crime related transactions.


4. (C) The bill generated considerable controversy in
Congress and sparked debates as to the efficacy of a
wholesale legalization of some drugs, namely marijuana.
Senator Tomas Torres told Poloff that some legislators had
serious reservations about aspects of the legislation;
nevertheless, it passed in the Senate with 87 votes and in
the Chamber of Deputies with 184 yes to 87 no. Some state
officials have also expressed both publicly and privately
their concern that they are ill-equipped to handle their new
responsibilities. State prosecutors in Monterrey told
Poloffs, for example, that their expanded duties in dealing
with narcomenudeo do not appear to come with additional
funding from the federal government.


MEXICO 00001308 002 OF 004


ASSET FORFEITURE
--------------


5. (C) The long-awaited asset forfeiture bill is intended to
enhance the government's ability to target the ill-gotten
financial gains of organized crime groups and was approved
unanimously on April 30 by the Senate and by the Chamber with
317 yes and 2 no votes. The law allows authorities to
initiate asset forfeiture proceedings in order to seize
property from suspected drug traffickers and other criminals
before securing a criminal conviction. Third party holders
of illicit goods can also be the subject of the seizure
process to prevent organized crime groups from hiding assets
in the names of friends of family members. Despite being
ready for approval early this session, according to
congressional contacts, probably reasonable objections from
opposition parties -- namely the PRI -- held the bill up in
committee. Last minute changes to the bill included
increased protections for innocent third parties, as well as
the creation of a "Specialized Asset Forfeiture Judge" within
the federal court system (ref c).

THE NEW FEDERAL POLICE
--------------


6. (C) The new bill passed on April 30 and aims to convert
the Federal Preventive Police, or PFP, into a new force known
as the Federal Police. The Federal Police will remain under
the management of the Public Security Secretariat (SSP),
headed by Genaro Garcia Luna. It will have expanded
investigative and intelligence-gathering powers, including
the ability to run wiretaps and use undercover operations in
the course of its "preventative duties." Proponents say that
the new force resolves a major challenge facing the PFP which
lacks the ability to carry out investigations and gather
intelligence, and is unable to employ various surveillance
techniques. PGR's Oscar Rocha told Poloff that the Federal
Police's new role will help the PGR prosecute cases, if for
no other reason than the force's sheer numbers. Garcia Luna
and his SSP cohorts told visiting diplomats on May 8, for
example, that the Federal Police will be able to request
wiretaps directly from judges, who will have to respond to
the request in 12 hours. They also explained that the
Federal Police is looking to play a greater role in
investigations -- serving when necessary as an "auxiliary" to
the PGR -- and will have a key part in securing the crime
scene and conducting initial evidence-gathering and
investigations. The law also expands the force's authority
in airport, customs, and even internet security, and will
allow it to employ state and municipal police officers and
other relevant personnel when required.


7. (C) Garcia Luna has been clear that he is looking for U.S.
help in training some 9,000 SSP investigators to comply with
the new legislation (ref d). He was less clear in explaining
the exact division of labor between the PGR's new Ministerial
Police, purportedly charged with investigation, and the
Federal Police's new "preventative" aspirations. He noted
that when a crime occurs, the force may be the first to
investigate and secure the crime scene, but that the PGR will
take over from there and will employ the force on what is
likely to be a more ad hoc basis (see septel for additional
reporting on police reform efforts).

PGR REFORM
--------------


8. (C) Amongst other items, the new PGR law looks to create
new organizational structures to better coordinate work
between PGR entities, apply stricter vetting standards to
employees, and create a new Ministerial Police that will
focus on investigations and will purportedly substitute for
the PGR's current Federal Investigative Agency (AFI) after
President Calderon's efforts to merge the AFI and the PFP
failed (ref e). As the PGR is also in the process of
standing up its own special wiretapping units, it remains to
be seen how the PGR and SSP play together in the sandbox.
Oscar Rocha stressed to Poloff the need to improve vetting
standards within the PGR -- which has been wracked with high
level corruption scandals -- and said that during internal
investigations, disturbing trends were uncovered, such as

MEXICO 00001308 003 OF 004


federal PGR officers in various states who had not taken a
polygraph test in over three years. Ironically, when Poloff
asked the federal PGR official in Monterrey how often his
subordinates were tested, he replied, "Oh, about once every
three years." The new law establishes a maximum of one year
between tests.


STILL PENDING
--------------


9. (C) Despite Congress' quick work at the end of this
session, a number of security-related laws will be left until
the next session starts with a brand new Chamber of Deputies
in September. Amongst these pending items are four packages
submitted to the Senate by President Calderon on April 23 --
only a week before Congress closed -- that deal with a
variety of military and public security issues. These
include changes to:

--MILITARY CODE OF JUSTICE: This would impose 30 to 60 year
prison sentences for military deserters who joined the ranks
of organized crime, as well as 15 to 60 year sentences for
members of the military who worked against the Armed Forces
or provided strategic information to criminals.

--NATIONAL SECURITY LAW: The reform looks to regulate the
military's role in the fight against organized crime, which
includes the creation of a "declaration of the existence of a
threat to domestic security," similar to a state of
emergency, which would justify and codify the Armed Forces'
participation in anti-crime efforts. Such a declaration
would require the approval of the National Security Council
-- which includes the President, Secretary of Government,
Secretary of Defense, Secretary of Public Security, Finance
Secretary, Public Service Secretary, Foreign Relations
Secretary, Communications and Transportation Secretary, the
Attorney General, and the Director of CISEN, Mexico's
intelligence organization -- and Congress' Bicameral National
Security Committee. The proposal also calls for granting
CISEN greater powers to tap telephones in cases including
conspiracy to commit espionage, sabotage, terrorism, and
rebellion.

--FIREARMS AND EXPLOSIVES LAW, FEDERAL PROCEDURAL PENAL CODE,
ORGANIZED CRIME LAW: The bill would ban ownership of specific
types and quantities of ammunition and would impose stiffer
sentences in case of violation. It would also strengthen
punishment against groups of people who possess illegal
weapons or ammunition in an attempt to crack down on
organized crime. Furthermore, the law calls for stiffer
penalties against public officials found to be complicit with
gunrunning or who illicitly possess illegal weapons.


10. (C) Calderon's last minute submission of these proposals
has engendered considerable controversy amongst the political
classes. Leaders from opposition parties have said that the
reforms, particularly the change to the National Security
law, require significant public discussion and examination
before they can be considered for passage. Senator Torres
dismissed Calderon's proposal as being a purely political
move designed to boost his profile and hone his law and order
credentials prior to the July elections.

COMMENT
--------------


11. (C) Congress' security accomplishments this session
appear to be a mixed bag. The asset forfeiture law, for
example, should provide the government with a powerful new
tool in fighting organized crime in Mexico. Colombian
diplomats have cited their own similar law as one of the most
important advances in their country's struggles. The
narcomenudeo bill, meanwhile, has been weakened since its
first iteration, suggesting that Calderon and his National
Action Party (PAN) may have compromised by favoring political
expediency over perfect legislation in order to get the bill
passed. The impact of the Federal Police law and the PGR
reforms will depend heavily on how they are implemented and
the interplay between the two often feuding organizations.


MEXICO 00001308 004 OF 004



12. (C) With the July elections staring them in the face and
a health crisis looming, Mexican congressional members
appeared to move quickly on the most key bills in order to
secure their passage before the end of the term. Some
legislators have complained that such alacrity led to
decreased discussion, examination, and debate, resulting in
less effective laws. While most of the initiatives have been
languishing in Congress long enough to provide for sufficient
study time, the proof, as always, will be in how the laws
function and are enforced on the ground in Mexico.
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http://www.state.sgov.gov/p/wha/mexicocity and the North American
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