Thread: Richardson to withdraw as Commerce secretary

Richardson/CDR investigation brings talk of political reforms
By Diana Washington Valdez For the Sun-News
Posted: 01/13/2009 12:00:00 AM MST


EL PASO — A new political scandal will greet New Mexico legislators, who begin their 2009 session Jan. 20 in Santa Fe.

They will take their place at the capitol building while federal and state investigators look into the latest allegations involving state officials.

"I've heard from others that several indictments are coming down," said Senate President pro tem Timothy Jennings, D-Roswell.

The FBI and a federal grand jury in Albuquerque are investigating whether CDR Financial Products received $1.5 million in fees from the New Mexico Finance Authority for contributing $100,000 to Richardson's PAC's. Richardson and CDR have denied any wrongdoing.

New Mexico had hired CDR to advise the state on a $1.6 billion bond package to finance projects of Governor Richardson's Investment Partnership (GRIP), which included the new Rail Runner train service between Belen and Santa Fe and road improvements throughout the state.

According to the Associated Press, CDR has been under investigation for its business practices around the country by the Justice Department's Antitrust Division, the Internal Revenue Service and the Securities and Exchange Commission.

No charges have been filed against the California-based company.

Albuquerque FBI Special Agent Darin Jones said he cannot comment on ongoing investigations. However, like the FBI in El Paso, which has investigated public corruption for the past three years, Jones said public corruption is a priority for the FBI in New Mexico as well as nationwide.

"The scandals we've had in recent years have created a sense that the state of New Mexico is up for sale to the highest bidder," said New Mexico State University government professor Jose Z. Garcia.

"There is too much (political action committee) money floating around, too many conflicts of interest and too much pay-to-play politics. The campaign finance system is in great need of reform, and ethical standards need to be cleaned up. The problem is we don't know what's going to happen next. It can range from the governor being exonerated to an indictment against him or others close to him."

To help people stay abreast of New Mexico politics, Garcia started a blog he publishes at www.lapoliticanewmexico.blogspot.com.

In addition to campaign finance reform, former state Sen. Lee Rawson, R-Las Cruces, said "they need to tighten the design-build system of letting contracts, which makes it easier for pay-to-play to occur. The system has its good points, and was created to weed out contractors of poor quality.

"Design-build brings together an architectural firm, engineer and construction company under one agreement, instead of seeking separate bids from everyone, but it also makes it easier for the price of projects to keep going up (unjustifiably)."

The FBI, the U.S. Attorney's Office and the state Attorney General's Office also investigated allegations against former state Sen. Manny Aragon, a longtime and powerful New Mexico politician. He pleaded guilty in October to conspiracy and mail fraud charges. Aragon's sentencing is scheduled for later this year. Others, including a lobbyist and a contractor, also entered guilty pleas in the case.

More recently, state and or federal investigators also are looking into complaints involving the Region III Housing Authority and a former state elections official.

"Our Housing Authority investigation is still ongoing," said Phil Sisneros, spokesman for New Mexico Attorney General Gary King. "Two years ago, the attorney general created a special unit, the Government Accountability Division, which looks at public corruption."

A New Mexico State Investment Office report on the Housing Authority said properties in Las Cruces were sold or leased to people who were not low-income. In one case, 33 single-family lots in Las Cruces were about to be sold to investors at market rates without regard to the income status of buyers, the report said.

News of the CDR investigation forced Richardson to step down as President-elect Barack Obama's nominee for commerce secretary. Before that, Richardson, a former Congressman, U.N. ambassador and federal energy secretary, ran unsuccessfully to be the Democratic Party's nominee for president in the 2008 election.

Yet, Richardson, who developed many connections in the federal government, is considered a political powerhouse. As a result, numerous movers and shakers from the south county contributed thousands of dollars to his gubernatorial re-election campaign.

Contributors such as Hunt ELP Ltd, Sanders Land & Cattle Inc., Sunland Park Development LLC, Paul Foster, Santa Teresa Corporate Center LLC, J.O. Stewart and Stanley Jobe gave $5,000 or more to his statewide campaigns. Some of these contributors have benefitted from free trade, which Richardson promoted, and from New Mexico state officials pushing border business development in Santa Teresa and Sunland Park.

Diana Washington Valdez is a reporter for the El Paso Times, a member of the Texas-New Mexico Newspaper Partnership. She can be reached @dvaldez@elpasotimes.com; (915) 546-6140.
http://www.lcsun-news.com/ci_11439485

Thanks for the update!
What wonderful news to ring in my New Year!
If only it happened after the job started.
That would have been EVEN more fun to watch.
Obama just missed being knee-deep in this "Pay to Play" scheme.
Hahahahahah