I am writing today to announce the closure of the New Mexico Independent. After three and a half years of operation in New Mexico, the board of the American Independent News Network, has decided to shift publication of its news…
While environmental activists played their part yesterday during demonstrations at the capitol building, going so far as to dress up as solar panels and to sing the tune of “You Are My Sunshine,” their counterparts, the anti-cap-and-trade contingency who has…
Roughly one quarter of University of New Mexico students are unimpressed with the state’s flagship public school, according to a survey that questioned college students about their higher education experiences.
Gov. Bill Richardson agreed Monday to an independent review of the state’s investment practices and policies, including the use of third-party marketers, his office said.
In a 180-degree turnabout, the governor also agreed to talk about changing the makeup of the State Investment Council to include more legislative representation. Richardson’s decision to discuss the council’s membership comes a month after he vetoed the bill that would have changed the makeup of the council.
Likewise, the governor’s embrace of an independent review of the state’s investment strategies comes less than a week after a legislative committee suggested the independent review.
The proposed review comes in the wake of a growing scandal that has brought high-profile scrutiny to how the state has invested taxpayers’ money in recent years.
State documents show that Marc Correra — the son of an associate of Gov. Bill Richardson — has shared in as much as $16 million of so-called finders fees as a third-party marketer from state investment deals in recent years. Correra is the son of Anthony Correra, a Richardson friend.
Third-party marketers were paid the finders fees by fund managers who were successful in persuading the state to let them manage state money. Richardson banned the finders’ fees last month.
Richardson administration officials have acknowledged that who received the finders’ fees – and the amounts of those fees – weren’t on their radar when the State Investment Council and Educational Retirement Board were inking deals to invest in hedge and private equity funds. The state was much more focused on ensuring that the state earned a good return on its investment, officials said.
The investment scandal also has sown doubt into whether the investment adviser used for years, Aldus Equity, always had the state’s best interest in mind. The founder of New Mexico’s former financial adviser, Aldus Equity was charged in a criminal probe last month. Among the allegations was that he helped the son of the then-New York state comptroller, Alan Hevesi, win a lucrative contract in New Mexico for a firm he was representing in return for Aldus’ increased business in New York, according to the criminal complaint.
According to a press release from Richardson’s office Monday, the state Board of Finance — an executive agency — and the Legislative Council Service will work on the scope and budget of the independent review.
“While the State Investment Council has produced impressive investment results during the past six years, I welcome an independent review and any recommendations that will improve the state’s practices,” Richardson said in the news release.
As for working with the Legislature on the makeup of the State Investment Council, Richardson said in the news release, “I’m happy to work with the Legislature on changes to the makeup of the council.”
