Rep. Cote blasts Lyons over audit

Nate Cote

State Rep. Nate Cote, who initiated the request from lawmakers that led to a damning audit of the New Mexico Land Office, says he’s concerned about potential criminal activity and hopes the attorney general will look into the allegation that the land office interfered with the audit.

Cote and several other state representatives requested the audit in 2008 following an opinion from Attorney General Gary King finding fault with Land Commissioner Pat Lyons’ leasing of land in Las Cruces to Philip Philippou for development.

Cote, a Democrat from Organ who lost this year’s election and leaves office in a few days, has also been involved in efforts to reform the land office. He has often been at odds with Lyons.

In an e-mail, Cote cited the state auditor’s concern about “a large number” of transactions in which land deals were made “in close temporal proximity” to campaign contributions from the applicants who received the deals. While the auditor recommended better disclosure but did not allege that the transactions were made in exchange for campaign contributions, Cote used harsher language.

“This was an obvious conclusion and very serious if not criminal pay to play behavior,” Cote said. “It is what a person in a position of public trust should not be doing. … This is especially true with someone in a position entrusted with millions of dollars of the public’s resources.”

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Cote said campaign contributions given by Philippou created a negative perception among his constituents. Cote represents some of the areas at the center of the Lyons/Philippou land deals.

In its response to the audit, the land office didn’t directly address the concern about campaign contributions. It instead pointed the finger back at State Auditor Hector Balderas, accusing him of a partisan witch hunt against the only Republican statewide elected official while ignoring “the prominent, public and private reports of the ‘pay-to-play,’ bribery and kickback culture of the Auditor’s own political party.”

Cote also expressed concern about findings that found numerous issues with land sales.

“When dealing with public lands and revenue sources, processes need to be tight, transparent, and to the benefit of the people of New Mexico,” he said. “Any less should be considered negligence in the most brazen form.”

Cote noted Balderas’ allegation that the land office ““interfered throughout the audit process,” withholding some documents and redacting others.

“Interference in any kind of audit or investigation is never ‘legally’ acceptable regardless of the ethical connotations,” Cote said. “I would hope that the AG look into this finding under state statute and file appropriate charges.”

Balderas referred the audit to the state attorney general and the U.S. Attorney’s Office.

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