Retired Mexican general accused in gas theft corruption case released on $20K bail in B.C.

A retired general accused of masterminding fuel thefts from Mexico's state-owned oil and gas monopoly has been released on bail in B.C., following a review by a Vancouver judge.

B.C. Supreme Court Justice Michael Tammen said Monday that there had been "material nondisclosure" of evidence by the RCMP ahead of the original bail hearing for Eduardo Leon Trauwitz evidence that suggests he may not be as much of a flight risk as previously believed.

Tammen said an affidavit sworn by a Mountie in support of the arrest warrant for Trauwitz did not mention his application for refugee status in Canada, his regular reporting to Canadian border agents as part of that application or the fact that he had surrendered his only passport.

According to the judge, the information in the RCMP affidavit was "at a minimum incomplete, perhaps deliberately misleading."

Under the terms of Trauwitz's release, he will be under electronic monitoring while living in his daughter's home. He must also make a $20,000 cash deposit and abide by an 11 p.m. to 6 a.m. curfew.

Trauwitz was arrested in the Vancouver area on Dec. 17 and faces extradition to Mexico on organized crime and gas theft charges. The charges stem from his seven years as head of security for Petroleos Mexicanos, commonly known as Pemex.

He's accused of forcing his subordinates to facilitate and cover up illegal taps of Pemex's pipelines by violent criminal organizations. Pemex has estimated that the fuel it lost to these gangs between 2016 and 2019 was worth more than 146 billion pesos or about $9 billion Cdn in today's currency.

These fuel thefts have also led to gas shortagesand they've been blamed for pipeline explosions that have killed dozens of people.

Retired general claims he's the 'fall guy'

Trauwitz has claimed he's being set up as the "fall guy" in a politically motivated prosecution and that he was actually trying to fix Pemex's problems with corruption.

He was originally denied bail in December, when Justice Veronica Jackson ruled the bail plan proposed by his legal team was "inadequate" and that he was a flight risk because of a lack of apparent ties to Canada. Trauwitz owns no property here and has not held down a job, the judge said, and he has a history of missing court dates in Mexico.

But on Monday, Tammen said Jackson did not have all the necessary evidence in front of her when she made that ruling.

He also noted that since December, a report has been made that deemed Trauwitz a good fit for electronic monitoring. Tammen said he was "favourably impressed" by Trauwitz's daughter's understanding of her role as surety and her commitment to following any bail terms.

Tammen went on to say that during hearings in December, Mexican authorities had submitted thatTrauwitz faced up to 60 years in prison if convicted, but since then a new legal opinion suggests his sentence might be much shorter, in the range of two to 14 years.

The former general fled Mexico ahead of a scheduled court date in May 2019 and has been living in Canada ever since, the court has heard. According to his defence team, he has a work permit and has been studying English in an attempt to find a job.

Trauwitz's next court appearance is scheduled for April 6.