The cost of corruption

WESLACO - The Delta region seemed like a prime location when Victor Tanguma started scouting locations to open a second restaurant five years ago.

With a growing population, a position along the main artery of Highway 107 and a community always on the lookout for cheap eats, cities like Edcouch, Elsa and La Villa offered a lucrative customer base not far from his Victor's Chicken flagship in east Edinburg.

But as soon as he had settled on a potential location, his expansion plans hit a snag.

"Before I even put a bid on the land, people started asking me for money," he said. "They said they could make things go easier for me if I paid."

Tanguma would not name the specific city or government employees that he said asked him for bribes. But his now-scrapped dreams of expansion are emblematic of a larger problem, some economic, political and civic leaders say.

The Rio Grande Valley has developed a reputation as a hotbed of political corruption among certain politicians and business leaders in the state who believe that to operate here, certain wheels must be greased, rules must be followed, and it never hurts to have a friend on the inside who owes you a favor.

And whether deserved or not, the impact of that image is felt well beyond the government circles, depressing economic development and chilling civic involvement, they say.

"Perception is reality," said Cameron County Judge Carlos Cascos. "The Valley gets a perception (for corruption) that's probably an exaggeration. But it does impact people from the outside looking in."

In the past year, dozens of elected officials, government employees and law enforcement officers have been charged with various forms of public malfeasance. Separate high-profile cases involving Hidalgo County Precinct 1 Commissioner Sylvia Handy, Brownsville Mayor Pat Ahumada and former Starr County Sheriff Reymundo Guerra have brought added attention to the issue in recent months

But discussing the effects of this constant parade of accused government employees proves difficult.

Few elected officials are willing to say that corruption or shady political dealings are a problem in their communities. Business and economic boosters rarely want to draw attention to a stigma.

And some - like John Milford - don't see a widespread problem at all.

A former Edinburg city manager who now teaches in the public administration program at the University of Texas-Pan American, Milford maintains that high-profile corruption cases have only erupted in a tiny fraction of the Valley's government entities.

CHILLING EFFECT

If getting a handle on the level of malfeasance in Valley government is complicated, charting its often intangible effects on business development and civic life can be even more difficult.

Businesses look at a variety of factors when deciding where to locate, said Steve Ahlenius, head of McAllen's Chamber of Commerce. And while searching for local government partners that play by the rules and operate on a level playing field is an important factor, an ability to make a profit in a potential business venue often trumps other concerns.

"You have an area of very hard-working people, a low-income area in the country doing a lot of the right things to be successful," he said. "But when you have elected officials who get indicted and convicted, it does hurt the image."

It's hard to deny that the growing number of corruption cases does have some effect regionally, said McAllen Mayor Richard Cortez.

"I have to believe it has an effect," Cortez said. "People that want to do business with governments and municipalities - they want to know there's a level playing field, (that) when they make a proposal everyone looks at it on the merits of the proposal."

"If certain governmental entities have a reputation where that doesn't happen, then obviously the public loses on potentially better deals."

Rumors of cronyism and backroom dealing regarding business matters in the Pharr-San Juan-Alamo school district persisted for years before the FBI arrested four PSJA officials in June 2007.

Superintendent Arturo Guajardo and three sitting board members eventually pleaded guilty to extorting bribes from contractors in exchange for steering district construction and maintenance work their way.

And because of cases like this one, many architects and contractors active across the state have sworn off working in the Valley entirely, said a handful of colleagues in the industry.

‘NO STRINGS ATTACHED'

Greg Townsend, a co-founder of the civic group Futuro McAllen, worries the reputation for corruption also has a chilling effect on political participation among community members.

He has seen good candidates shy away from running for public office due to reluctance to get wrapped up in potentially compromising situations. Their lack of participation only allows dirty dealing to continue without scrutiny, he said.

"I think that's the most damaging thing," he said. "Who would want to serve? I wouldn't want to run for office."

Cascos, the Cameron County judge, said he has seen firsthand how difficult it can be for an outsider to break into the local political scene. A longtime Democrat, he switched parties in 2006 for a chance to run for his current seat after clashing with political bosses in Cameron County.

"There's a mindset that if you want to play ball you have to pay homage to a kingmaker or a queenmaker or you're not getting elected," he said. "My election was one that kind of proved to people that you can buck the machine."

But Cascos - already a known political figure in the region - had the backing of some ardent supporters.

For others, like Tanguma, the chicken shop owner, it's easier to just give up than challenge the status quo. After his experience with Delta government officials, he nixed his expansion plan.

For now, he's happy to maintain his business on the border of Edinburg - a city with which he has had no problems.

"If these cities are going to grow," he said. "They need to let people in with no strings attached."

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Jeremy Roebuck covers courts and general assignments for The Monitor. You can reach him at (956) 683-4437. Ryan Holeywell covers McAllen, PSJA, the Mid-Valley and general assignments for The Monitor. He can be reached at (956) 683-4446.