MILITARIZATION OF PUBLIC SECURITY IN MEXICO - PART II “INVALIDITY OF THE REFORM THAT TRANSFERS CONTROL OF THE NATIONAL GUARD TO SEDENA”

By: Fernando Sánchez Tarasco / María Fernanda Castro González

As mentioned in the first part of this analysis regarding the “Militarization of Public Security in Mexico” -published in December 2022-, on September 9, 2022, the Mexican Congress approved a Decree amending 4 laws regarding the National Guard, with the purpose of -among others- transferring the administrative and operational control of the National Guard to the Mexican Ministry of Defense (“SEDENA”), and requiring that the high-level commanders of such National Guard come from military positions.

As a result, several appeal means were filed, including 5 actions of unconstitutionality, 3 constitutional controversies and 1 amparo claim, all of which, at the request of the President of the Chamber of Deputies, were attracted to be resolved as a priority matters by the Mexican Supreme Court of Justice -as made known through official communication No. 451/2022, dated December 9, 2022-.

In this sense, on April 17 and 18, 2023, the Plenary of the Mexican Supreme Court of Justice finally discussed and voted the Action of Unconstitutionality 137/2022 -filed by certain group of Senators against the Decree amending several provisions about the National Guard and Public Security- regarding the constitutionality of the referred Decree that intended to transfer the operational and administrative control of the National Guard to SEDENA.

In this regard, it should be recalled that Article 21 of the Mexican Constitution recognizes the National Guard as a public institution with a civilian nature, in the following literal terms:

“(…) Public security institutions, including the National Guard, will be civilian, disciplined, and professional. The Public Prosecutor’s Office and the police institutions of the three powers of government shall coordinate among themselves to fulfill the purposes of public security and shall form the National Public Security System, which shall be subject to the following minimum bases:(…)”

The resolution prepared by Judge González Alcántara Carrancá, pointed out that the transfer of control and change of assignment of the National Guard from the Ministry of Security and Citizen Protection to the SEDENA would be contrary to the civilian nature of the institution and would violate the express mandate to assign it to the Ministry of Security and Citizen Protection.

Therefore, in said resolution project it was proposed: (i) to declare the invalidity of Article 29, section IV of the Organic Law of the Federal Public Administration, in its normative portion that establishes that it is the competence of SEDENA to: “...hold the operational and administrative control of the National Guard, in accordance with the National Public Security Strategy defined by the Ministry of Security and Citizen Protection...”, as well as (ii) to declare invalid Articles 12 section I, 13 Bis and 23 of the National Guard Law, in the normative portions that stated that the operational control of the National Guard and its structure would correspond to the Ministry “...of National Defense...” -this is, SEDENA-.

Within the discussion of the referred resolution, the participation of Judge Aguilar Morales stands out, who considered as invalid the whole Decree under the consideration that Article 21 of the Mexican Constitution establishes that the public security institutions, including the National Guard, are of a civilian, disciplined, and professional nature, so the matter would be limited to determine whether the regulatory system would adjust or not to the block of constitutionality.

In this regard, he referred that in the Interamerican site it would be remarkable what was stated by the Inter-American Court of Human Rights when resolving the case “Cabrera García vs Mexico”, in the sense that the Governments must limit to the maximum the use of the armed forces for the control of common criminality or internal violence.

Therefore, said Judge considered that relevant Decree would be unconstitutional as it would disrupt the guarantee of civilian assignment of the National Guard established in Article 21 of the Mexican Constitution.

On the other hand, Judge Pardo Rebolledo stated that the challenged Decree would be contrary to Constitution, since the objective of the Mexican Congress would have been transfer to the SEDENA the control of the National Guard that previously corresponded to the Ministry of Security and Citizen Protection, which is contrary to the express text of Article 21 of the Constitution, in which the Permanent Constituent Power expressly established the civilian nature of the National Guard.

Judge Ríos Farjat pointed out that it would break the unity, hierarchy, and development of the Federal Public Administration, implying a security risk for society, since if the invalidity was not declared, the National Guard would be an organ that would respond to two Ministries, one with civilian and the other with military nature.

After the participation of the Judges of the Plenary of the Mexican Supreme Court of Justice, voting took place, in which there was a majority of eight votes in favor of declaring the invalidity of the aforementioned articles.

Finally, in a plenary session held on April 20, 2023, the effects of such declaration of invalidity were discussed, indicating that the governmental agencies involved would have sufficient time to readjust the administrative, budgetary, and operational control, considering that the Plenary of the Mexican Supreme Court of Justice indicated January 1, 2024, as the date for the effects of the invalidity to take effect.

On April 29, 2023, the United Nations High Commissioner for Human Rights urged Mexican authorities to promptly comply with the Mexican Highest Court’s ruling and stated that it is fundamental for a State where human rights are respected to guarantee the civilian nature of the National Guard in accordance with the Mexican Constitution and international human rights standards.

Thus, the decision of the Mexican Supreme Court of Justice constitutes a precedent of extreme importance, since in strict respect for the human rights involved, as well as the recommendations and resolutions issued by various international organizations, it forces the Mexican Government to readjust the path in matters of Public Security by reincorporating the control and operation of the highest public security agency -National Guard- to a public institution of a civilian nature -such as the Ministry of Security and Citizen Protection- without the interference of high military commanders.

Notwithstanding the foregoing, it is necessary that the Mexican Government fully comply with the order of the Supreme Court, abstaining from issuing new Decrees insisting on transferring the operational control of the National Guard to military forces, and generating instead the needed spaces for dialogue with the purpose of establishing legislative and operational strategies that reinforce the capacity of the civilian security forces.

Restructuring

Müggenburg, Gorches and Peñalosa's restructuring practice includes representation of corporate debtors, hedge funds, in various industries, etc., in restructuring proceedings and bankruptcy equivalents (insolvency proceedings).

Mergers & Acquisitions

We provide services in acquisitions, sales, mergers, spin-offs, reorganizations and co-investments, representing national and foreign clients operating in various industrial and commercial sectors.

Corporate /Transactional

At Müggenburg, Gorches y Peñalosa we provide legal services in all aspects of corporate law practice. Our group of professionals in this area has years of experience providing services to both national and international clients, with the most diverse needs and the highest standards of demand and sophistication in the service. Among our clientele are leading companies in their sectors worldwide, such as automotive, cosmetics, hotels and tourism, food industry, aeronautical industry, computer programs and systems, suppliers of the oil industry, technology, among others.

We advise our clients on the constitution of Mexican companies (commercial and civil) and associations, attending to the needs derived from the industry and/or commerce segment in which they focus their activities and their medium and long-term plans, also providing services for compliance with the regulatory requirements that may apply, including those derived from direct foreign investment, economic competition and obtaining the necessary licenses and permits for its operation. Our services also extend to the provision of corporate services within the ordinary course of business of our clients, including advice on the preparation, review and negotiation of all types of civil and commercial contracts, and the custody, updating and maintenance of corporate books. . We also provide services related to the opening and management of branches in Mexico of foreign companies.

We represent national and foreign corporate and/or investment groups in the acquisition of, and/or merger with, Mexican business entities, and on other occasions we also represent acquired Mexican entities. In both cases, we provide legal audit services to foresee possible contingencies of the operation, locate areas of opportunity and help determine the value of the company to be acquired. Likewise, in representing the acquirer, we prepare the legal documentation of the operation (specifically contracts for the sale of shares and/or association, with all its annexes and accessory contracts), and we carry out their negotiation with the counterparty. Likewise, in these cases we participate directly in the processing and obtaining of any authorizations, permits, licenses and concession titles required for the operation of our clients, and we advise on notices and notifications to government entities, including notifications of resolutions and opinions of the Federal Economic Competition Commission.

We provide advisory services for corporate restructuring and reorganization, also including international corporate groups with a presence in Mexico. In these cases we have worked in coordination with groups of financial and accounting advisors both from Mexico and abroad, and we have coordinated legal audits of subsidiaries of entities acquired in several Latin American countries (Argentina, Brazil, Chile, Colombia and Peru, among others, with local legal advisers in each case).

We advise on operations of association in participation, "joint-ventures", preparation and negotiation of agreements between shareholders, merger and spin-off of legal entities, establishment of trusts of any type, constitution of guarantees on any type of property, repurchase of shares by of companies listed on the Mexican Stock Exchange, as well as in the structure of purchase option plans and other types of specialized corporate operations.

We also provide services for the development of mechanisms that allow the efficient and effective anticipation and management of potential conflicts between shareholders; in this regard, we have represented groups of shareholders of Mexican companies in the implementation of corporate actions to defend their interests against the rest of the shareholders and the Company itself on internal corporate control issues, generally in coordination with litigation areas in matters commercial and civil.

Depending on each particular project or operation, we rely on other specialty areas of the Firm, in order to provide comprehensive services, under the highest standards of quality and efficiency.

Mergers & Acquisitions

We provide services in acquisitions, sales, mergers, spin-offs, reorganizations and co-investments, representing national and foreign clients operating in various industrial and commercial sectors.

Restructuring (Corporate and Financial)

Müggenburg, Gorches and Peñalosa's restructuring practice includes representation of corporate debtors, hedge funds, in various industries, etc., in restructuring proceedings and bankruptcy equivalents (insolvency proceedings).