TFJA annuls sanction against Flow & Low; Sedena renders it void

The Anti-Corruption and Good Governance Secretariat announced that the Twelfth Regional Chamber in Mexico City of the Federal Court of Administrative Justice declared the nullity of the sanction imposed on Flow & Low de México, Sociedad Anónima de Capital Variable, within the administrative contentious trial 7762/25-17-12-2. The sanctioning resolution was rendered void, and the Internal Control Body of the Secretariat of National Defense issued a compliance agreement on October 14, 2026. The notice was published via Circular No. AR07-13/2026 in the Official Gazette of the Federation on Tuesday, November 3, 2026.

The origin of the case is the administrative sanctioning procedure for suppliers and bidders 044/PAS/2022, processed by the Responsibilities Area of the Specific Internal Control Body in the Secretariat of National Defense. On October 30, 2024, through resolution AR07/M-VIII-C/4896, a fine of 344,875.65 pesos and a three-month disqualification from participating in procurement procedures or entering into contracts regulated by the Law on Acquisitions, Leases and Services of the Public Sector and its Regulations were imposed on the company and its legal representative, Eduardo López Martín del Campo.

The interested party first filed a motion for reconsideration, resolved on March 19, 2025, in file 009/REC.REV./2024 with resolution T.O.I.C.07/1011, which confirmed the sanction. Subsequently, they turned to the court: the petition was filed on April 10, 2025, before the Common Filing Office of the Regional Chambers in Mexico City.

Absolute nullity by the court

In a final judgment dated March 2, 2026, the Twelfth Regional Chamber ruled that the plaintiff proved their claim and declared the absolute nullity (nulidad lisa y llana) of both the challenged resolution and the originally appealed one. The ruling was based on articles 49, 50, 51 fraction IV, and 52 fraction II of the Federal Law of Administrative Contentious Procedure, and the grounds are detailed in the considerations section of the judgment.

The sense of the ruling is twofold: on one hand, it annuls the act that confirmed the sanction in the administrative review and, on the other, the original act that imposed it. Since it is an absolute nullity—and not a nullity for effects—the sanctioning act cannot persist nor be redone under the same terms.

The agency renders the resolution void

As a result of the above, on October 14, 2026, a compliance agreement was issued within procedure 044/PAS/2022, whereby resolution AR07/M-VIII-C/4896 was rendered void. Consequently, the following were rendered without effect:

• The fine of 344,875.65 pesos (three hundred forty-four thousand eight hundred seventy-five pesos 65/100 M.N.).
• The disqualification for three months from participating directly in procurement procedures or entering into contracts regulated by the Law on Acquisitions, Leases and Services of the Public Sector and its Regulations.
• The sanctions imposed on both the legal entity and the natural person who represented it.

The official letter was signed in Naucalpan de Juárez, State of Mexico, on October 27, 2026, by the head of the Responsibilities Area of the Internal Control Body of the Secretariat of National Defense, Tomás Espinosa Ferrer.

Recipients of the official communication

The circular is addressed to a wide range of purchasing authorities, to ensure that none of them maintain the disqualification in effect nor collect the annulled fine:

• Agencies and entities of the Federal Public Administration.
• The Attorney General’s Office.
• Federative entities, municipalities, and territorial demarcations of Mexico City.

The instrument was issued based on file 044/PAS/2022 and under the seal of the Secretariat of Anti-Corruption and Good Governance.

Impact for providers and procurement areas

The publication obliges procurement areas and acquisition committees to review their registries of disqualified providers and to refrain from rejecting the participation of Flow & Low de México based on a sanction that no longer legally exists. It also sets a control precedent: the sanctioning act can be completely overturned if the court detects flaws in its issuance, and the agency must comply with the ruling by rendering the act void, not merely adjusting it.

Source: Official Gazette of the Federation, November 3, 2026, Executive Branch Section, pp. 12-13 (official reference: Circular No. AR07-13/2026).