An independent audit found Albuquerque’s fraud watchdog failed to meet professional standards in reports that uncovered $74,000 in waste. Now, two lawsuits are pushing the city to release six investigation reports that have been kept from the public for seven months.
The audit, conducted by accounting firm REDW and released Oct. 1, reported that investigators under former Inspector General Melissa Santistevan didn’t provide enough evidence to back their conclusions and often ignored conflicting information. Auditors also said Santistevan failed to properly supervise the Office of Inspector General (OIG) or set up basic quality controls.
“This review confirms concerns the administration has raised about the OIG’s professionalism, bias and compliance with standards,” Chief Administrative Officer Samantha Sengel, whose office oversees the inspector general function, said in a statement.
Watchdog Under Scrutiny
Albuquerque’s Office of Inspector General investigates government misconduct under the City Ordinance, which defines waste as “the thoughtless or careless expenditure, mismanagement or abuse of resources to the detriment of the City.”
Reports recently deferred by the city’s Accountability in Government Oversight Committee (AGOC) include multiple findings that meet that definition.
These findings matter because the inspector general’s office is the city’s primary safeguard against fraud, waste and abuse. When the office falls short of professional standards, it raises questions about how effectively City Hall is protecting taxpayer dollars.
The committee approved three OIG reports in April that revealed serious problems — $55,528 wasted on repeated City Hall renovation designs, $18,587 in missing city assets and $294 in timecard fraud by an employee paid for hours not worked.
At the same meeting, the committee deferred six of the nine reports presented that day, citing quality concerns. The committee then hired REDW for up to $30,205 to conduct a Quality Assurance Review. The committee placed Santistevan on paid leave in May and chose not to renew her contract when it expired in June.
Transparency fight moves to court
After months without resolution, two Albuquerque residents are suing the city to force the release of six withheld investigation reports.
Charles Arasim filed his lawsuit Sept. 3. Matthew Cone filed a second lawsuit on Oct. 1. Both cases cite the state’s Inspection of Public Records Act. Under that law, courts can fine public agencies $100 per day for each wrongfully withheld request, plus attorney fees.
In September, City Councilor Dan Lewis also urged the AGOC in a letter to convene immediately. Lewis said the Aug. 20 deadline required by ordinance had already passed.
The committee responded that it was prioritizing accuracy and transparency and confirmed that the REDW review would eventually be published.
“Releasing these reports are fundamental for public trust and good governance. Albuquerque residents deserve timely access to the findings of their Inspector General,” Lewis wrote in the letter
Committee resumes action
The AGOC met Tuesday, Oct. 14, and approved one of six withheld investigation reports after adding an appendix to address quality concerns, according to Interim Inspector General Peter Pacheco.
A second report reviewed at the meeting wasn’t approved but will be released within 15 days “with a cautionary statement from the AGOC attached,” Pacheco said. Four other reports remain under review.
“I am confident in the committee’s decision to hire REDW to conduct a quality assessment review,” City Council President Brook Bassan said. “The process has already improved since the recommendations and corrective action plan have been created.”
What’s next
Pacheco said his office plans to finalize the remaining reports in phases, with a goal of reviewing two per month. The AGOC’s next scheduled meeting to consider additional reports is set for Oct. 29.
Residents who want to track the process or report concerns about waste, fraud or abuse can contact the Office of Inspector General at (505) 768-4TIP or cabq.gov/inspectorgeneral.