Report ING Fails in Attempt to Unfreeze $300 Million Held by Mexican Court

September 30, 2003

The Netherlands-based ING Group has reportedly failed in its attempt to unfreeze $300 million that has been in the hands of a Mexican court since the end of August.

The court had ordered the seizure of the funds at the request of Grupo Fertinal, a Mexican phosphate mining company, that is pressing a claim against ING Seguros Comercial America over the amount to be paid for damages to its property caused by a hurricane in 2001.

Fertinal has alleged that at least 10 Seguros Comercial employees are responsible for keeping funds paid by reinsurers, that it says should have gone to pay the claim. It convinced the court to issue warrants for their arrest. According to a report from Reuters, the Court, located in Mexico City confirmed the seizure of the bank accounts on the grounds that the company could be held responsible for the acts of its employees. The latter have reportedly been in hiding since the dispute erupted in order to avoid arrest.

Reuters noted that ING wasn’t surprised by the ruling, calling it part of an ongoing process. The company also indicated that despite the seizure of the funds it was still operating normally throughout Mexico.

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