By Frances F. Williams
When Michael Montoya, the ex-treasurer of
There were two reports last year that revealed widespread misuse of state money by the housing authority.
One of the reviews, ordered by Gov. Bill Richardson, reported gross mismanagement and flagrant violation of state statutes in providing affordable housing for moderate to low income families. The other report, a forensic audit of Gallegos’ Region III Housing Authority and Housing Enterprises, Inc., a related company, was ordered by the State Investment Council after Gallegos defaulted on $5 million in state-owned bonds that were to be used for affordable housing.
The second report revealed what were, in my opinion, an exorbitant salary and outrageous benefits paid into Gallegos’ retirement funds that totaled several hundred thousand dollars. Two staffers and a board member had both been allowed to purchase homes from the authority that were meant for the poor.
The bonds were also used to build homes that were sold to investors instead of low-income families.
Expenses other than the construction and rehabilitation of affordable housing violated the terms of the bonds. These bonds have not been paid back and, to date, Gallegos has not been prosecuted.
In addition, the Attorney General’s Office is investigating allegations that Housing Enterprises, Inc. fraudulently represented itself as a non-profit corporation and was taking 3 percent kickbacks on sales of homes to low income families that might have been inappropriate.
An aide to Lujan had also been living rent-free in a home owned by the housing authority, but Lujan insists he knew nothing about it. It’s my opinion that he either isn’t telling the truth or he wasn’t doing his job.
In June 2006 the speaker, who had appointed Gallegos to the Housing Trust Council that provided oversight of the regional housing authorities, was asked by a bipartisan group of legislators to remove Gallegos from that board. That never happened.
The speaker didn’t do his job.
In addition, he pulled a Tom DeLay during the campaign by spreading money around to Democratic House candidates to secure their loyalty and support for his continued leadership. Shame on those legislators who voted for him. Kudos to those who didn’t.
The governor has been strangely silent on this matter, even though the report he ordered clearly showed violations of state statutes and gross mismanagement of state funds.
I applaud the governor for taking time to go around the world and attempt to repair it, but we need a lot of reconstruction here at home. Our hard-earned tax dollars should not be used as a piggy bank for crooked politicians and their cronies to plunder.
There must be oversight and accountability, and that is currently lacking. Our lawmakers must pass strong ethics legislation that will shine a light on how they do business and hold them accountable. And we must be outraged as voters and throw the rascals out, to include those who support this kind of chicanery.
Frances Williams remains a Region VII Housing Authority board member, though the authority is not currently operational. She was the whistleblower who exposed the problems with the system last year.