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.
Balderas
State Auditor Hector Balderas wants legislators to pass three new laws that would give his office teeth, including one making it a crime to mislead or obstruct auditors.
“We need to change how business is done in New Mexico,” Balderas told The Independent. “The defense [for wrongdoing] is always that something’s ‘not illegal.’”
Calling for “fundamental and structural” change, Balderas has proposed three bills: an expansion of the late audit law, a bill outlawing obstruction of audits and a prohibition on statewide elected officials—but not legislators themselves—from doing business with state agencies.
The ‘Not O.K. to Obstruct Auditors’ proposal
Incredibly, it is not a crime for state or local government officials to mislead, hinder or obstruct state-mandated audits or state auditor investigations in New Mexico.
Balderas’s Obstruction of State Audit proposal would make it a misdemeanor to interfere with the completion of an audit or state auditor’s investigation.
Why just a misdemeanor? Making the law a felony would require more time and resources of prosecutors, Balderas noted. “Given these economic times, it’s probably wise to propose it as a misdemeanor and the Legislature can increase the penalty if they see fit,” he said.
Cases like the embezzlement of $3.3 million from the Jemez Mountain School District have gone undetected for years because those involved are able to delay and mislead auditors, Balderas said.
“In the Jemez School District case, we think there were purposeful delays, and there were misrepresentations that caused a need for us to pass a law [like this],” Balderas said.
Rep. Al Park, D-Albuquerque, has agreed to sponsor the bill, Balderas said.
Financial Penalties for Skipping Audits
The state Audit Act requires annual independent audits for every non-federal governmental body in the state, but 74 villages, towns, cities school districts, commissions and authorities are currently in violation of that requirement, according to Balderas.
Under the proposed bill, the state Department of Finance and Administration could withhold capital outlay funding from county and municipal governments that have not completed annual audits. State agencies came under a similar law last year, Balderas said, but the Legislature did not include local governments.
“I’m extending it to local governments,” Balderas said of his new proposal. “There need to be financial consequences for misconduct.”
To date, no legislator has yet agreed to sponsor the proposed bill, however.
Some towns and cities have not completed audits for several years. Cuba and the Cuba Housing Authority have not completed an audit since 2004. Española’s North-Central Solid Waste Authority has not completed an audit since 2004 either, according to the State Auditor’s at-risk designation list.
Balderas’s home town of Wagon Mound has not completed an audit since 2006.
Fewer Conflicts of Interest
Balderas has also proposed a prohibition on any statewide elected official—or businesses “in which that public officer has a substantial interest”—from holding contracts with any state agency or leasing property to the state.
“Conflict of interest is the front door to greater abuses,” Balderas said. “Statewide [elected officials’] income disclosures with the Secretary of State are very broad. Disclosure is a great first step but we really need a prohibition.”
The proposal only applies to statewide elected officials—not state legislators or local government officials like city or county commissioners.
“Statewide elected officials have the most power,” Balderas said. “But it may be expanded to include lawmakers and (local) commissioners. I’d welcome any expansions.”
Rep. Ken Martinez, D-Grants, will sponsor the bill.
Balderas said he would not be affected by the proposal, as he has no business contracts with the state. The U.S. Constitution’s protection of contracts means the law cannot be retroactive; it will only prevent statewide elected officials from entering new contracts with state agencies, Balderas said.
