On June 16, the Albuquerque City Council voted to approve the appointment of a new City Inspector General, a new City Auditor and two members of an Ethics Board. All four positions play critical roles in the oversight and enforcement of city ordinances and regulations.
The five-member Accountability in Government Oversight Committee, whose volunteer members are appointed by the mayor and City Council, oversees the Office of Inspector General and its employees and conducts searches and screens candidates for the job. It also oversees the City’s Internal Auditor.
The Committee is made up of Victor Griego, who serves as its chair and is the internal audit director at the University of New Mexico, Esteban A. Aguilar Jr., a former city attorney, who serves as vice chair, Robert Aragon, a private Albuquerque attorney, Johnny L. Mangu, a certified public accountant, and Lia Armstrong, an at-large member. Ex-officio members include two top city administrators and two city councilors.
CRITICL REPORTS OF INSPECTOR GENERAL
The Office of the Inspector General (OIG) of the City of Albuquerque is an independent entity that has the “responsibility for promoting accountability, integrity, efficiency, and transparency in the governance of the City of Albuquerque.” Through inspections, reviews, and investigations, the OIG identifies systemic corruption vulnerabilities and recommends improvements to reduce the City’s exposure to fraud, waste, and abuse.
The Office’s goal is to improve the function of City departments to ensure they are effective and efficient for the constituents of Albuquerque. Although an independent entity, the Office of the Inspector General must submit and have approved for release all reports by the Accountability in Government Oversight Committee.
On May 13, the city’s Accountability in Government Oversight Committee placed Inspector General Melissa Santistevan on administrative leave with pay after deciding not to recommend she be retained for another four years by the City Council. Her contract expired June 21, and three new OIG candidates were considered to replace her by the City Council.
Santistevan became engulfed in conflicts with the Accountability in Government Oversight Committee and the City Council over 9 completed investigations into alleged misconduct or malfeasance by the Keller Administration.
The decision to hire someone new for the nonpartisan job came after Santistevan went public with a notice March 31 alleging that the committee had failed to consider and release a total of nine completed OIG investigations. Santistevan stated at the time that the pending reports dealt “with fraud, waste, or abuse that impact our City. Some of these reports have been completed for months without citizen awareness.”
Griego, the committee chair, responded that the committee had “multiple concerns regarding the quality of the reports and the underlying investigations.” The committee decided Santistevan acted outside the scope of her authority as the Inspector General, something she strongly disputed. Inspector General Santistevan in recent years has looked into violations of nepotism, misbilling, abuse of authority and leave policies, and abuse of power by the Keller Administration.
TWO SCATHING REPORTS
There have been two scathing reports issued by Inspector General Melissa Santistevan that have been highly critical of the Keller Administration and that have raised the ire of Mayor Tim Keller.
IMPROPER USE OF CHILD CARE STABILIZATION GRANT FUNDS
On November 24, 2024 the Office of Inspector General issued a final Investigation Report with the entitled subject matter “Alleged Improper Use of the Child Care Stabilization Grant Funds by Inappropriately Compensating City Employees Through Bonuses.” The program was supposed to help childcare providers defray unexpected business costs associated with the COVID pandemic.
The grant money was supposed to assist in keeping child care providers’ doors open during the pandemic. The Family & Community Services Department now operates under the umbrella of the city’s Youth and Family Services and Health, Housing and Homelessness departments.
The city of Albuquerque’s Office of Inspector General (OIG) investigation concluded that a group of city employees, including top administrators in Mayor Tim Keller’s Family & Community Services Department, received more than $280,000 in improper bonuses using money intended to sustain “childcare providers” during the COVID pandemic.
The OIG investigation report states in part as follows:
“Twenty-three out of the 27 employees who received premium pay had annual salaries greater than Preschool staff. Five of those salaries were more than double the Preschool staff’s highest paid salary with one almost tripling the salary of the highest-paid Preschool staff.”
In total, $287,972.77 was distributed to 27 city employees, a majority who worked outside the Family and Community Development Department, which oversees childcare in the city. According to the report, pay ranges for preschool are $32,469 to $42,162 annually.
Twenty-three of the 27 employees received a July 2022 bonus of either $8,533 or $3,878, then in December of the same year, 14 employees received bonuses ranging from $5,400 to $13,000. More than 10 recipients, including top managers, received nearly $20,000 each. Among its findings, the OIG reported bonuses, called premium payments, of up to that $22,498 were paid to employees who earned $32,469 to $123,490 annually. The highest bonus of $22,498 went to the Child and Family Development division manager. The position made $88,000 annually before the “premium pay.”
On January 2, 2025 the Accountability in Government Oversight Committee took the unusual action of voting NO to approve the OIG report released. The Accountability in Accountability In Government Oversight Committee, which is comprised of community members appointed by the mayor and City Council, met on November 14 to review and consider the investigative report. The committee found the OIG “lacked sufficient jurisdiction under the city’s Inspector General ordinance to investigate one or more of the allegations.”
In response to the OIG report, the Keller Administration responded it did not intentionally misuse the federal grant funds and did not have direction from the federal government on where to appropriate the funds.
Associate Chief Administrative Officer Carla Martinez released the following statement:
“These were employees that kept childcare centers open during the COVID crisis, these were not bonuses, and these were not inappropriate. … Once again the OIG is submitting subjective opinions that were unanimously rejected by her own oversight committee comprised of legal and accounting professionals. This grant provided necessary overtime funding for critical early childhood caregiver programs and management during the Covid crisis.”
City Council President Dan Lewis issued the following statement in response to the OIG report saying this:
My office is referring this investigation to the U.S. Attorney due to allegations of federal crimes involving the abuse, misuse, and theft of federal funds allocated to high-ranking members of the Keller administration. These funds, approved by the Council, were intended exclusively for early childhood programs as outlined in the grant’s description. However, they appear to have been unlawfully redirected as cash bonuses for the Mayor’s staff.
Alex Bukoski, spokesperson for Mayor Tim Keller’s office, responded to City Council President Dan Lewis:
“Dan’s comments are at best, a grossly inaccurate overreaction; and worst another in a long line of bitter rants against the Administration since losing his own election bid.”
COMMENTARY: The committee voted 5-0 against approval, stating in a “cautionary statement” attached to the investigative report that “readers are advised to review this published report and its content with the understanding that the Committee did not approve this report.” The committees cautionary statement smacks of politcal gamesmanship to try and discredit a critic. It is simply absurd and a false finding by the Keller Administration and the Accountability in Government Oversight Committee that the Office of Inspector General “lacked sufficient jurisdiction” and exceeded her authority with her reports. According to City Ordinance 2-17-2 the Inspector General’s goals includes “to prevent and detect fraud, waste, and abuse in city activities.”
You can read the entire 24 page Inspector General Report here:
MONEY SPENT ON POLITICAL PROPAGANDA BOOK
On October 30, 2023, the Albuquerque Office of the Inspector General (OIG) released a scathing 27 page report that found the Mayor Tim Keller Administration had misused taxpayer money to the tune of more than $97,000 to write, edit, print and publish 598 copies of a book entitled “City at the Crossroads: The Pandemic, Protests, and Public Service in Albuquerque”. The book became controversial when released as critics charged that it was nothing more than political propaganda paid for by taxpayers to promote Mayor Tim Keller and his administration. The book includes a chapter dedicated to Keller called “the Metal Mayor”, several dozen photos of Keller, and an introduction written by Mayor Keller and a foreword written by his wife Elizabeth J. Kistin Keller as first lady of the city.
The Office of inspector General went to far as to label the book “a waste” of taxpayer funds and said this:
“The OIG considered whether it is reasonable to believe, that in the event of another pandemic, someone would seek out and read a book of anecdotal stories as a guide of how to navigate such a crisis. … Obligating the taxpayer’s monies to fund a book that promoted the administrative achievements during the pandemic and where a calculated value may never be known appears to be a waste.”
The report did not find enough evidence supporting claims the city violated its purchasing ordinance or the state’s anti-donation clause producing the book. However, the OIG report suggested evidence of possible favoritism and conflict of interest.
The Albuquerque Journal took special interest in the story and suffered an embarrassment when it was revealed that the book was written by none other than longtime Albuquerque Journal columnist Joline Gutierrez Krueger. It turns out Gutierrez Krueger was paid $44,700, or $60 per hour, by the city of Albuquerque to write the book without her informing the Journal editors nor getting the papers permission. Gutierrez Krueger contracted with the city while still employed by the Albuquerque Journal which was a violation of the papers policy that prohibits moonlighting for government entities to avoid conflicts of interest. The Journal issued the following statement:
“Gutierrez Krueger contracted with the city while still employed by the Journal, a violation of company policy that prohibits moonlighting for government entities to avoid conflicts of interest.”
But for the fact that Gutierrez Krueger was about to retire, her authorship of the book could have likely been used as grounds for termination by the paper.
You can read the entire 27 page OIG report at this link:
https://www.cabq.gov/inspectorgeneral/documents/22-0189-c-report-of-investigation.pdf/view
CITY COUNCIL APPOINTS NEW INSPECTOR GENERAL APPOINTED
On June 16, the City Council voted unanimously to approve William David Hoffman as the new city Inspector General to manage the Office of Inspector General. The vote followed a structured selection process where council members submitted ballots to determine the most qualified candidate. Hoffman’s appointment, which passed with a 6-0 vote, is expected to enhance oversight and accountability within the city’s operations.
Santistevan’s attorney Edward Hollington said this of her removal:
“Rather than thanking the IG for pointing out problems regarding waste, fraud and abuse so the city could address them, they have chosen to get rid of her for doing her job.”
According to his résumé, Hoffman is a founder of the San Diego-based Gryphon Workplace Investigations. The firm provides compliance and investigative services. Hoffman was also the director of investigations and operations at University of California San Diego and a special agent in charge at the U.S. Environmental Protection Agency’s Office of Inspector General. A former Secret Service agent, Hoffman also holds a Master of Arts in Foreign Policy from Florida State University. Hoffman appeared by zoom for the council’s confirmation. Hoffman thanked the council for selecting him and expressed his honor in accepting the position.
The link to the quoted or relied upon news source is here:
https://www.abqjournal.com/news/article_821d18e3-6724-454f-8336-cf6f1dbe9fe3.html
NEW CITY AUDITOR APPOINTED
The Office of Internal Audit (OIA) is responsible for conducting independent audits of City operations. The OIA prepares reports aimed at reducing costs, increasing revenues, enhancing effectiveness and efficiency and strengthening internal controls. The OIA benefits the City of Albuquerque by making recommendations that reduce costs and improve internal controls.
The City Council voted to approve Marisa Vargas as the new city auditor to oversees the Office of the Internal Auditor. Vargas has been the city’s Interim City Auditor since 2023 . She is a University of New Mexico graduate with a master’s in accounting
TWO NEW BOARD OF ETHICS MEMBERS APPOINTED
The city charter stipulates that the council appoints three members to the Ethics Board, the Mayor appoints three members, and those six members elect a seventh member to serve as the chairperson.
The board’s responsibility is to receive and examine complaints about potential breaches of the Code of Ethics, the Election Code, the Open and Ethical Elections Code and any rules established by the board or the city clerk.
The city council voted to approve Clayton King, a commercial real estate professional, and Levi Green, an associate director of project management company Cumming Group, to the City’s Ethics board and they will serve until July 31, 2027. King and green will serve out the remaining terms of former members Josh Martinez and Jim Collie who resigned.
The link to the quoted or relied upon news source is here:
https://www.abqjournal.com/news/article_e59b8ff8-8843-4502-b790-0023707c3d64.html
COMMENTARY AND ANALYSIS
There is no doubt that the appointment of a new city Inspector General, new City Auditor and 2 members of the Ethics Board are coming a very critical time during the 2025 Municipal elections where the offices of Mayor and 5 City Council seats will be on the ballot. Each position could conceivably play a critical role in ensuring transparency and accountability during the election process despite efforts to the contrary by the Keller Administration.
Based on the treatment the Accountability in Government Oversight Committee and the City Council gave to Inspector General Melissa it can only be hoped that the Accountability in Government Oversight Committee as well as the City Council will allow the new Inspector General William David Hoffman do his job without either running interference for Mayor Tim Keller and his Administration over investigative reports it does not like and the enforcement of the city’s elections laws by the Ethics Board.