Denish, Papen propose new housing reforms

By |

Lt. Gov Diane Denish announced today that she will back comprehensive reform of the state’s regional housing authorities in the upcoming legislative session.Denish said she will support a bill sponsored by Sen. Mary Kay Papen, D-Las Cruces, that would build on the reforms approved in 2007 following a scandal that toppled most of the state’s housing authority system. “I will do everything in my power to protect New Mexicans and to be sure we meet affordable housing demands where they are greatest, especially in rural areas where resources are thin,” Denish said in a news release. Word of the reform proposal adds to the current flurry of activity in the housing authority scandal. On Thursday, The Associated Press reported that the attorney general plans to take the drawn-out criminal investigation of the scandal before a grand jury early next month. And the state auditor plans to release next week the results of an in-depth audit he’s been conducting in the aftermath of the collapse of the system. Continue Reading

Grand jury to consider housing authority case

By |

Witnesses have been subpoenaed to appear in early February before a grand jury in the drawn-out investigation of scandal in the state’s housing authority system, The Associated Press is reporting. The probe has been ongoing since before Gary King took office in early 2007, and many had begun to wonder whether it would ever lead to criminal charges. Many have been shocked at the egregious nature of the scandal, which began in mid-2006 when the Albuquerque-based Region III Housing Authority defaulted on $5 million in bonds it owed the state. Soon thereafter, the State Investment Council released a report that found widespread misuse of the bond money, which was supposed to be spent on houses. Instead, almost $600,000 went to former Region III Director Vincent “Smiley” Gallegos as salary and benefits. Continue Reading

Yates announces candidacy for GOP chairman

By |

Harvey E. Yates Jr. has formally announced his candidacy for chairman of the Republican Party of New Mexico. The oil giant’s candidacy had been previously known, but he formally announced it Wednesday in a letter to members of the party’s state central committee, who will select new officers at a meeting on Saturday in Albuquerque. “You will remember that Ronald Reagan once said, ‘…man is not free unless government is limited.’ That is true, and it is also true that the transfer of more and more power to government enhances the opportunity to engage in corrupt ‘Pay to Play’ activities by those who have no integrity,” Yates wrote in the letter. “Yet, today, we are faced with an increased liberal majority in our state legislature whose orientation is toward increasing the power of government and diminishing the rights of individuals,” Yates wrote. “To defeat them we are faced with daunting challenges. Continue Reading

Media intensifies scrutiny of Richardson, CDR

By |

Bill Richardson spent some time dodging and not really answering reporters’ questions today as the media continued to increase the scrutiny on the governor in the face of a criminal investigation into allegations of pay-to-play in his administration.The New Mexico Independent’s Trip Jennings has the story on Richardson’s attempt to give the media the slip earlier today during the first and second of three public appearances that weren’t related to the federal grand jury investigation: “The story is a little convoluted, so I’ll hit the highlights,” Jennings wrote. “The governor makes promises at the day’s first stop to take questions at the day’s second stop, which takes place in an auditorium that unbeknownst to reporters has a side door that the guv and his entourage then use to dodge the pesky scribes who chase the governor but who are left in the dust of his black SUV as it squeals away before a question is shouted out.” Perhaps there’s a good reason Richardson didn’t want to talk: As I’ve reported, earlier in the day, Bloomberg.com identified Richardson’s former chief of staff, Dave Contarino, as a key subject of the investigation. Richardson, as his spokesman did in a statement to me earlier in the day, finally expressed his support for Contarino at the third public stop and gave a few additional comments to those pesky scribes. The Bloomberg.com article wasn’t the only investigative report being widely discussed today. Steve Terrell of The Santa Fe New Mexican came out with an article detailing a second federal investigation of a project involving the company at the center of the alleged pay-to-play scandal, CDR Financial Products. Continue Reading

Guv is ‘fully supportive’ of Contarino

By |

Gov. Bill Richardson says he is confident that former Chief of Staff Dave Contarino, who is under investigation in a federal probe of pay-to-play allegations, did nothing improper.“The Governor is fully supportive of Dave Contarino and is confident that he always acted ethically and appropriately during his time as chief of staff,” Richardson spokesman Gilbert Gallegos wrote in an e-mail. “Dave was a key part of the progress in New Mexico under Governor Richardson’s leadership.” Richardson withdrew his nomination for commerce secretary on Sunday because of the federal grand jury investigation that has cast suspicion on his administration. As I reported earlier today, a Bloomberg.com article has revealed that federal prosecutors are asking whether Contarino was involved in the alleged pay-to-play scheme. CDR Financial Products was paid almost $1.5 million in 2004 advising the finance authority on interest-rate swaps and restructuring escrow funds for $1.6 billion in bonds related to the transportation project dubbed GRIP, or Governor Richardson’s Investment Partnership. Meanwhile, in 2003 and 2004, the company gave $75,000 to Richardson’s political action committee Si Se Puede!, and the company’s head, David Rubin, gave $25,000 to Moving America Forward, another Richardson PAC. Continue Reading

Feds looking at guv’s ‘most senior and trusted aide’

By |

David Contarino says he is confident that investigation will prove he acted appropriatelyFederal prosecutors are asking whether David Contarino, a man Bill Richardson once described as the “strategic mind” of his administration and “my most senior and trusted aide,” was involved in the alleged pay-to-play scheme that derailed the governor’s nomination to be commerce secretary days ago, Bloomberg.com is reporting. One unnamed witness who testified before the federal grand jury investigating the allegations was quoted by the news organization as saying he was asked if Contarino, Richardson’s former chief of staff, ordered officials with the New Mexico Finance Authority to hire CDR Financial Products for a lucrative state contract. And “another personal familiar with the investigation” was quoted as saying that Contarino “is a subject of the inquiry and that prosecutors are looking at whether he solicited contributions from firms that worked on finance authority bond deals.” The Bloomberg.com report threatens to increase the level of scandal surrounding Richardson, who has leaned heavily on Contarino to develop policy and manage his political and governmental staffs. In addition to leading Richardson’s state government office for three years, Contarino ran both of Richardson’s campaigns for governor and his unsuccessful run for president last year. It was when Contarino left the chief of staff job in 2006 to work on Richardson’s re-election campaign that Richardson called him his most trusted aide. Continue Reading

One Las Crucen seeks GOP leadership position

By |

When members of the state GOP’s central committee meet on Saturday to choose their leaders for the next two years, at least one Las Crucen will be a candidate. Isaac E. Chavez, a former state House and Las Cruces City Council candidate, announced his candidacy for 1st vice chair of the state party in a Monday letter to members of the central committee.He’ll face the party’s current secretary, Nina Martinez, who is the only other declared candidate. “In order for our Party to recover from the devastating losses of the past few years, we will all need to roll up our sleeves and work harder than we have ever done before! This means that the next Chairman of the Party is going to need a 1st Vice Chair who has a plan based on fresh, new ideas and the work ethic to implement them,” Chavez wrote in the letter. “We need a 1st Vice Chair who is not tied to any factions or beholden to any single particular geographical area of the state.” Other Republicans from the state’s second largest city could still become candidates for one of the leadership positions, but at this point, Chavez is the only declared candidate from the southern part of the state. Continue Reading

Teague’s business partner congratulates him

By |

This article has been updated. New members of the state’s congressional delegation are being officially sworn in today, but the most interesting statement I have found about the situation didn’t come from any of them. It came from Johnny Cope, chairman of the state Transportation Commission, who wanted to congratulate the new 2nd Congressional District representative, Harry Teague, for being named to the House Committee on Transportation and Infrastructure. Here’s Cope’s statement, sent by a spokesperson for the state Department of Transportation: “I would like to congratulate Congressman-elect Teague on this important appointment. He will be a strong voice not only for New Mexico but for our nation as we undertake a major transportation and highway infrastructure improvement plan proposed under President-elect Obama’s economic stimulus package. Continue Reading

Shouldn’t Obama have seen this coming?

By |

In the case of Bill Richardson, the warning signs were there, but the president-elect apparently missed them all. How? When Barack Obama announced his nomination of Bill Richardson to be commerce secretary in early December, my initial thought was something along the lines of, “That must mean the federal investigation of the governor’s administration has ended.” After all, articles about the probe into allegations of pay-to-play had first been published on my blog, the New Mexico Independent and the Albuquerque Journal in August. It was a serious investigation: I knew weeks before Obama’s announcement that people close to the governor had been subpoenaed, and that the probe was focused on whether people at the highest levels of Richardson’s administration had helped CDR Financial Products secure a lucrative state contract in exchange for contributions to two Richardson political action committees. So didn’t the Obama people know that too? Continue Reading

Some quotes about Richardson’s withdrawal

By |

It’s been somewhat difficult to get many New Mexico politicians to comment on the news that Gov. Bill Richardson is withdrawing his nomination to be commerce secretary because of an ongoing probe into allegations of pay-to-play in his administration. The Albuquerque Journal published the reactions of some politicos, which you can read by clicking here. In addition, here are a few more quotes I’ve gathered:From U.S. Sen.-elect Tom Udall, who will be officially sworn in Tuesday: “I am disappointed that Gov. Richardson will not become our next U.S. secretary of commerce, because he would have served our country well. His decision to put the progress of the Obama administration and the difficult challenges facing our nation first demonstrates his commitment to our nation.” From Whitney Cheshire, communications director for the Republican Party of New Mexico: “This is a very serious and unfortunate situation for New Mexicans. Our state has been under one party’s rule for decades and is now riddled with scandal. Continue Reading

CDR’s head responds to pay-to-play probe

By |

The head of the company at the center of an investigation into allegations of pay-to-play in Gov. Bill Richardson’s administration proclaimed that he and his company have done nothing wrong in a letter posted today on his company’s Web site. David Rubin, head of CDR Financial Products, wrote in the letter that he gives to political action committees like those formed by Bill Richardson not in exchange for state business, but because he has “been an unabashed supporter of Democratic causes and public figures, especially those like Gov. Richardson, who support a liberal, inclusive agenda.” “It is true that I have made contributions to political causes and candidates in New Mexico — including contributions directly to Bill Richardson’s gubernatorial campaign and to organizations supporting voter registration drives and other aspects of the electoral process,” Rubin wrote. “That support was given with full compliance of state and federal laws.” He wrote that he and his company were surprised that Richardson withdrew on Sunday his acceptance of President-elect Barack Obama’s nomination of him to be commerce secretary. He called the timing of the investigation and media coverage surrounding it unfortunate for Richardson, who he wrote is “an exceptionally able and dedicated public official, who was highly deserving of the opportunity to hold a cabinet-level position in the new Obama Administration.” Rubin wrote that CDR “has never practiced pay-for-play, on any playing field where we do business,” and underwent “a rigorous vetting process” before being selected for the state contract. “CDR will continue to work closely with our many government clients in developing the strongest risk controls and financing strategies they can sustain,” Rubin wrote. Continue Reading

Guv has hired prominent criminal defense lawyer

By |

Gov. Bill Richardson has hired a prominent criminal defense attorney to represent him in the investigation of allegations of pay-to-play in his administration, The Associated Press is reporting.Peter Schoenburg is a partner in the firm Rothstein, Donatelli, Hughes, Dahlstrom, Schoenburg & Bienvenu, LLP, a firm the news service reports “specializes in criminal defense, complex civil and commercial litigation, Indian law and other issues.” I attempted a couple of weeks ago to contact Schoenburg to confirm that Richardson had hired him, but was not able to reach him. The Associated Press was not able to reach him either, but confirmed through “a federal law enforcement official who asked to remain unidentified because he was not authorized to discuss the investigation” that Richardson had hired Schoenburg. According to his firm’s Web site, Schoenburg has been in private practice since 1993 and has successfully represented many defendants in white-collar cases. He is a former state public defender. Schoenburg has a bachelor’s degree from Yale and earned his law degree from Rutgers University in 1978. Continue Reading

CDR saved the state millions of dollars

By |

But the company has been involved in several controversial situations in other states The company at the center of the investigation into allegations of pay-to-play that derailed Bill Richardson’s commerce secretary nomination, CDR Financial, was hired to save the state money, and it did save the state millions of dollars by restructuring escrow funds. The New Mexico Finance Authority hired the company to advise the state on interest-rate swaps and restructuring escrow funds related to a $1.6 billion transportation project Richardson dubbed GRIP, or Governor Richardson’s Investment Partnership. According to documents from NMFA, CDR saved the state more than $8.8 million through its work to restructure escrow funds, and received as payment about $443,000 — 5 percent of the money it saved the state. In all, the state paid CDR almost $1.5 million for its work, with most of the rest of the money the company was paid coming as a result of its work on the interest-rate swaps that were intended to lower costs and make the GRIP bonds less vulnerable to shifting interest rates. The NMFA hasn’t released documents that claim the company’s work on interest-rate swaps saved the state a significant amount of money. Continue Reading

‘Hurting’ guv says he’ll focus on agenda for NM

By |

Gov. Bill Richardson continued to insist during a news conference today in Santa Fe that a probe into allegations of pay-to-play in his administration will clear him, and he hinted that he might still leave the state’s top job at a future date to take a position in the Obama administration.In the meantime, he said, it’s time to move forward with an agenda that will better the lives of New Mexicans. At the quickly called news conference, Richardson was quick to point out that Obama said on Sunday that he looks forward to Richardson joining his administration at a later date, after the conclusion of the investigation. “I still believe I have a lot to give in public service,” Richardson said, according to video of the news conference that was broadcast on the Web site of KOAT-TV in Albuquerque. Richardson said he had to make a difficult choice in deciding to reject Barack Obama’s nomination of him to be commerce secretary, but he said it’s time to move forward. “I lost a cabinet appointment, but I think we have to focus on what people are losing in this country,” Richardson said, adding that the economic times should be the focus because people are losing jobs, savings and homes. Continue Reading