A months-long fight over transparency erupted at Albuquerque City Hall last fall after nine Inspector General fraud investigations were completed. Of those investigations, the public has only seen two final reports; four remain unreleased and one was formally rejected.
The controversy began in April when the Albuquerque Accountability in Government Oversight Committee deferred six reports, citing concerns about their quality and credibility. The decision immediately drew criticism from the Association of Inspectors General.
“An OIG’s ability to present the results of its work to government stakeholders and the public is a cornerstone of effective government oversight,” Will Fletcher, president of the Association of Inspectors General, said in an April letter. “It fundamentally undermines the very principles that Offices of Inspectors General are designed to uphold.”
A Quality Assurance Review by accounting firm REDW, completed Aug. 15, supported the committee’s concerns. The audit found investigators under former Inspector General Melissa Santistevan often ignored conflicting information, lacked sufficient evidence and failed to establish basic quality controls or properly supervise the office. The city paid REDW up to $30,205 for the review.
Credit: Roberto E. Rosales / City Desk ABQ
Chief Administrative Officer Samantha Sengel said in October a statement that the audit confirmed the administration’s long-standing concerns about the office’s professionalism, bias and compliance.
The controversy dates back to April. That month, the committee approved three reports documenting $74,315 in waste and fraud, including $55,528 spent on repeated City Hall renovation designs, $18,587 in missing city assets, and $294 in timecard fraud. Six other reports were deferred due to quality concerns. Santistevan, who said in March the delayed reports involved fraud or abuse, was placed on paid leave in May. Her contract was not renewed in June, and she is now suing the city.
Since then, the committee has approved one deferred report and rejected another.
Reports status
Two deferred Inspector General reports have become public since the outside audit raised concerns. The committee approved one with an addendum. It released the other after voting not to approve it, attaching both an addendum and a cautionary statement.
Pacheco told the city council Dec. 1 a Board of Ethics investigation pulled his two investigators off fraud reports from mid-August through October. His office now has only three employees since Santistevan was fired. At the time, Pacheco said he expects to present two more reports by early January, with the remaining reports coming later.“This is new territory for me,” Pacheco told councilors. “I’ve been with the office for 17 years and this has never happened before.”
As of mid-January, four reports remain unpublished while being rewritten.
A mayor’s office spokesperson told City Desk Thursday, the administration awaits the revised reports before acting on the findings, adding, “It would be premature to speculate.”
Transparency battle
District 5 city councilor Dan Lewis demanded the reports be released by Oct. 1. He said the committee violated the city charter’s 15-day deadline, according to his Sept. 3 letter to committee chair Victor Griego.
Lewis said the delays violate the city charter; the administration countered that quality concerns justified a review that stretched past the election and into the new year. Griego denied any wrongdoing, saying accuracy required the delay, according to his Sept. 17 response. City Attorney Lauren Keefe said at a September council meeting that no ordinances were violated.
The mayor’s office said the Inspector General’s office is independent. A spokesperson said, “The OIG is made up of accounting and legal professionals who recommended that reports have more review.”
Lewis said one deferred report involves federal COVID-19 relief funds meant for childcare workers that instead went to bonuses for high-ranking city officials. He referred the case to federal prosecutors in January.
Previous City Desk coverage of this issue can be found here:
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