By Rob Nikolewski | Capitol Report New Mexico
SANTA FE — Fears of a debt rating downgrade prompted the New Mexico Finance Authority board to cancel a contract with third-party investigators who were supposed to look into a 2011 fraudulent audit.
State Auditor Hector Balderas and Daniel Tanaka, director of the state’s Securities Division, said they were concerned about third-party investigators possibly hindering their respective investigations into the bogus audit that is being blamed on a former employee at NMFA.
As a result, the board on Wednesday also passed a measure to create a committee that would work out a new contract having third-party investigators report to the New Mexico State Auditors Office.
But these changes could compromise the authority, which issues low-interest bonds for government entities and school districts, beyond the state’s borders, especially with the ratings agencies, Moody’s and Standard and Poor’s.
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