Mexico’s War on Drugs Profits From Illicit Loot

Mexican law-enforcement officials threw an all-night party Thursday, courtesy of the nation’s wealthy and powerful drug lords.

They charged nearly $20 a head for anyone interested in bidding on diamond-studded pistols, gem-encrusted brooches shaped like AK-47 assault rifles, or even a gold pendant bearing the official insignia of Mexico’s federal police above the name of one of the nation’s most wanted drug bosses.

The venue for the auction--held under heavy armed guard and lasting well into the early hours Friday--was a luxurious salon in an entertainment complex that the attorney general’s office seized from a former police officer and suspected narcotics dealer in a posh Mexico City neighborhood.

And when the last bid was in, Atty. Gen. Antonio Lozano counted his counter-narcotics effort tens of thousands of dollars richer--profits from the seized assets of many of the drug dealers he is hunting.

The auction was just the first of eight planned by Lozano, Mexico’s 42-year-old self-styled crime buster. The attorney general and his aides hope to use the profits from everything from the auctioned-off jewelry and gold coins to seized jets and sprawling ranches that will be auctioned in the future to raise a small fortune for the government’s campaign against the drug lords and the corruption they spread.

With slightly more than half of Thursday’s auction offerings sold, Lozano’s aides proclaimed the event a success.

Lozano’s administrative chief, Jose Antonio Gandara, said 75 big spenders showed up to bid on the goods, which amounted to 5% of all the seized property.

The sale was “carried out with the seriousness, transparency and security” needed to sell big-ticket items in the future, Antonio Gandara said.

Still, he and other Lozano aides said they suspect that the drug lords may have sent agents to the auction to buy back their things.

Thursday night’s marathon also highlighted the challenge Lozano faces as he seeks to break the nation’s powerful drug cartels amid a deep economic crisis that has slashed government spending.

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Although operating with a fixed budget amid soaring inflation, he unveiled an ambitious but costly internal reorganization plan this week that included an elite counter-narcotics division--something he hopes will combat corruption. Aides said proceeds from the auctions are among the possible sources of funding for the restructuring.

Security was so tight at Thursday’s auction that Lozano’s spokesman would not identify any of the bidders, the successful bids or even the total amount raised through the auction. He did say the government had hoped that the event would make about $450,000.

The attorney general’s office took the precaution of closing the auction to the press, which the spokesman said would have had a chilling effect on attendance.