Corruption Charges Rock Mexican Steel Producer AHMSA

The chairman of Mexican steel producer Altos Hornos de Mexico SAB was arrested on Tuesday in an anti-corruption probe, resulting in the freezing of AHMSA accounts and a possible disruption to steel production in Mexico.

The investigation involves the sale by AHMSA of an idled fertilizer plant in 2014, allegedly worth $50 million, to oil company PEMEX for $475 million. Alonso Ancira, chairman of AHMSA, allegedly paid former Pemex CEO Emilio Lozoya $3.7 million in bribes to secure the deal using a shell company set up by Brazilian construction firm Odebrecht. Lozoya was also arrested and charged with tax-fraud and bribery.