Businessmen in the border city of Matamoros claim municipal officials are collecting extortion fees on behalf of the Gulf Cartel. Those who do not pay reportedly face government-imposed fines and forced closures.
The issue has been building for more than six months since Matamoros City Secretary Carlos Ballesteros implemented the collection of an “operating license” for all businesses in addition to a “land use permit” payable only in cash. Law enforcement sources consulted by Breitbart Texas say those proceeds are turned over to the Gulf Cartel.
Most recently, officials in Matamoros posted a series of new permits and taxes that caused much concern among local business owners. The local chapter of the Federal Chamber of Commerce sent a letter to cartel-connected Tamaulipas Governor Americo Villarreal asking for a reprieve from the excessive taxes, permits, and fees imposed by state and city officials.
The letter claims that local business owners are in a state of fear due to threats and extortion. The document argues that 90 percent of the fees and taxes collected are in cash without a receipt. The letter points to various businesses choosing to relocate to Texas to avoid corrupt officials and cartel extortion.
Businessmen revealed to Breitbart Texas that extortion commonly occurs during city inspections. When owners are unable to prove prior payment, they are hit with additional charges and threats of forced closures. Additionally, officials openly threaten businesses about not making any complaints unless they wish cartel operatives to perform the next site visit.
Ildefonso Ortiz is an award-winning journalist with Breitbart Texas. He co-founded Breitbart Texas’ Cartel Chronicles project with Brandon Darby and senior Breitbart management. You can follow him on Twitter and on Facebook. He can be contacted at Iortiz@breitbart.com.
Brandon Darby is the managing director and editor-in-chief of Breitbart Texas. He co-founded Breitbart Texas’ Cartel Chronicles project with Ildefonso Ortiz and senior Breitbart management. Follow him on Twitter and Facebook. He can be contacted at bdarby@breitbart.com.