Supreme Court reviews arrest warrant for GMD chairman

The Mexican Supreme Court took up an appeal filed by Jorge Eduardo Ballesteros Franco, chairman of the board of Grupo Mexicano de Desarrollo (GMD), in August at the request of Justice Irving Espinosa Betanzo. The legal action challenges an arrest warrant against Ballesteros Franco, who was the majority shareholder in Desarrollos Hidráulicos de Cancún, the legal entity behind water concessionaire Aguakan.

The arrest order stems from an investigation by the Attorney General's Office into alleged money laundering. The probe was prompted by a complaint from the administration of Quintana Roo Governor Mara Lezama. The accusations link back to an extension of the water concession granted in 2016 during the administration of Governor Roberto Borge, which included a consideration of slightly more than MXN 1,055 million. Authorities allege state agencies paid this amount without legal authorization.

The 2025 indictment before a Quintana Roo control judge also named Diego José Ramos González de Castilla, former chairman of Grupo Bursátil Mexicano (GBM); Paul Andrew Rangel Merkley, former chief executive of Aguakan; and Enrique Rojas Blasquez, former board member of GBM. Ballesteros Franco and Rangel Merkley both filed for injunctions on March 13, 2025. While Rangel Merkley secured protection from arrest, a judge denied relief to Ballesteros Franco, finding the warrant justified and sending the case on review to a collegiate court before reaching the Supreme Court.

Aguakan has maintained that the concession process was legal, stating the actions of Quintana Roo authorities seek to force shareholders into relinquishing the concession and selling the company. Separately, GMD recently concluded another dispute before the Supreme Court. On August 28, the court upheld a ruling over a 2013 fiscal tax debt of MXN 916.3 million claimed by the Tax Administration Service, which GMD disclosed to the Mexican Stock Exchange resulted in a payment of MXN 1,085 million.