page_title: Comisión Federal de Electricidad
section_title: Enrique Ochoa Reza settlement agreement scandal
hierarchical_section_title: Comisión Federal de Electricidad / Controversies / 2016 / Enrique Ochoa Reza settlement agreement scandal
caption_attribution_description: English: A panoramic picture of the El Cajón dam, in the state of Nayarit, Mexico, taken during a school field trip. Español: Foto panorámica de la presa El Cajón, en el estado de Nayarit, México, tomada en un viaje escolar. Français&#160;: Photographie du barrage de El Cajón, dans l'état de Nayarit, Mexique, prise à un voyage académique.
context_page_description: The Comisión Federal de Electricidad is the state-owned electric utility of Mexico, widely known as CFE. It is the country's dominant electric company, and the country's second most powerful state-owned company after Pemex. The Mexican constitution states that the government is responsible for the control and development of the national electric industry, and CFE carries out this mission. The company's slogan is "Una empresa de clase mundial".
context_section_description: In September 2016, it was reported by Pablo Gomez from Aristegui Noticias, that Enrique Ochoa Reza, who had stepped down two months earlier as head of the commission after being selected leader of his party, had received $1,206,000.00 pesos as a settlement agreement, despite voluntarily resigning his position. Furthermore, Ochoa Reza stayed on the commission's top job for only two years and 155 days, while the "Manual de Trabajo de Servidores Publicos de Mando la CFE" (the regulation concerning high-ranking positions in the CFE) clearly stipulates that settlements can only apply after a minimum three years on the job, and only to those individuals whose retirement is not voluntary. The payment probably constituted a violation of the Mexican Constitution's Article 127 as well, which prohibits settlements of this nature in favour of state-owned corporations' employees (with few exceptions). Despite the media and popular backlash, Ochoa maintained the settlement agreement was legal. Two months later, in response to the 2016 San Pablito Market fireworks explosion that occurred in Tultepec on December 20, 2016, Ochoa announced he had given the 1.2 million pesos to the UNAM Foundation and the Michou and Mau Foundation, which specializes in the rehabilitation of children with severe burns.
caption: A panoramic picture of the El Cajón dam, in the state of Nayarit, Mexico.
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