Nm Department Of Corrections

Audit reveals massive tax dollar misuse

SANTA FE, NM (KRQE) - A state audit released Wednesday reveals $3.7 million in questionable expenditures by the state Corrections Department and points at former facilities manager Laurie Chapman.

The audit covered 2007 to 2010 and was prompted by questions by now former Secretary of Corrections Joe Williams. The 66-page report reveals incident after incident of questionable spending for construction projects performed by Omni Development, Advantage Asphalt and HEI Incorporated.

The audit claims HEI overcharged the state more than $180,000 for four backup generators and had a habit of significant markups on materials, in one case marking up items 164 percent.

According to the audit's findings, the state also paid $450,000 to Advantage Asphalt and $1.3 million to OMNI with no proof they ever provided a service.

The investigation also focused on former corrections department facilities manager Laurie Chapman. She was recently indicted by a federal grand jury on bribery charges, accused of taking $237,000 from OMNI Corporation.

The audit found that Chapman overrode internal controls designed to prevent abuse of the process and concealed information including notifications of overpayments.

Chapman is no longer with the corrections department.

The governor and State Auditor Hector Balderas say they would like more audits to be performed on state agencies to see if there is any other misuse of taxpayer money.

Audit: Corrections Department overcharged by contractors | New ...

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The audit said one company, HEI Inc. of Albuquerque, overcharged the department $180,000 for four backup electrical generators. The audit said about $2 million in payments went to the company but invoices were “not descriptive enough to identify the good or services” provided to the department.

The audit said the department was overcharged $48,000 by Santa Fe-based Advantage Asphalt on one project and there was a “lack of support to substantiate payments” of $397,000 to the company. Auditors found nearly $1.3 million in unsupported costs billed by Omni.

The Corrections Department’s former facilities manager, Laurie Chapman, has already been indicted on 30 counts of bribery for allegedly accepting $237,000 from one of the contractors, Omni Development Corp. The overcharging came during difficult years for the state budget and the administration of Gov. Bill Richardson.

Auditor Balderas is running for U.S. Senate in 2012 as a Democrat.

Agreed, but it’s the governor’s responsibility to ensure that accountability exists.  Unfortunately there are so many darn scandals coming out of his time in office that it’s pretty easy to assume that the culture in Santa Fe during his administration was toxic.  Maybe it always has been and climaxed with his term, but regardless, he failed to lead in so many areas.

But I am no fan of private prisons, particularly when you consider they are driving all the immigration laws for their next cash cow.

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