Norway’s sovereign wealth fund, the world’s largest, has divested all investments in Pemex due to corruption concerns. Investigations link Pemex to numerous allegations over the past two decades. Despite having an anti-corruption system, transparency issues persist. Pemex faces significant debts and reported financial losses, with new leadership recently appointed to steer the company forward.
Norway’s sovereign wealth fund, renowned as the largest in the world with assets totaling US $1.8 trillion, has officially divested from Petróleos Mexicanos, commonly known as Pemex. This decision was disclosed on Sunday, with major concerns related to corruption cited as the driving factor. The Council on Ethics, which oversees ethical investments, has publicly expressed that Pemex was linked to serious allegations of corruption spanning from 2004 to 2023.
In clarifying its stance, the Council indicated that numerous employees, including a past senior executive, faced allegations of accepting bribes on various occasions. The report pointed to high-profile cases, notably the Odebrecht scandal and the imprisonment of Emilio Lozoya, Pemex’s former CEO, linked to a fraudulent fertilizer plant sale in Veracruz. Overall, these scandals exemplify persistent issues facing Pemex over the past two decades.
Operating under guidelines dictated by Norway’s parliament, the fund is recognized as a model of environmental, social, and governance practices. Just last June, it was reported that the fund’s investments in Pemex securities were valued at around $138 million.
In defense of its actions, Pemex responded to the Council, asserting it had adequately provided requested information. Nevertheless, the watchdog maintained its earlier recommendation to withdraw the investments. Although Pemex did have an anti-corruption protocol in place, the Council indicated that little concrete details were available regarding its efficacy.
The Council’s report expressed concern over a lack of transparency, particularly referring to allegations of corruption reported in the media for the year 2017. Additionally, issues of favoritism for specific suppliers and bribery allegations pertaining to contract assistance were highlighted. Several former employees faced scrutiny, with a number of cases also leading to settlements in United States courts.
Looking to the future, questions loom over Pemex’s ability to recover under new leadership. Currently, the company carries a staggering debt of approximately $100 billion. The prior administration under López Obrador had promised vital financial support, a strategy that President Claudia Sheinbaum is set to continue.
In a significant leadership change, Víctor Rodríguez Padilla was appointed as Pemex’s new CEO in October, indicating a potential shift for the company. An internal document disclosed plans for innovative business models designed to attract investment throughout Sheinbaum’s 2024-2030 term, alongside initiatives to boost deepwater oil exploration.
Despite the company’s efforts, Pemex recently reported a staggering net loss of 43.3 billion pesos, equivalent to about US $2.2 billion in the first quarter of 2025, alongside dwindling oil output. This paints a concerning picture of the state oil company’s financial health, raising uncertainty about its future prospects.
In summary, Norway’s sovereign wealth fund has divested from Pemex due to ongoing concerns regarding corruption, stemming from numerous high-profile cases. The Council on Ethics highlighted serious lapses in transparency, even as Pemex attempted to assure its compliance with anti-corruption measures. With new leadership at Pemex and substantial debts, the company’s future remains uncertain, particularly in the face of declining oil production and recent financial losses.
Original Source: mexiconewsdaily.com
