Monday, December 2, 2013

The Edited Audit




A heavily redacted portion of the audit was released in October and at least one of the private auditor’s conclusion directly contradicted the administration.   

State Auditor Hector Balderas
Now State Auditor Hector Balderas is doing his own audit of the governor’s private audit and he filed court papers showing that he found evidence that the administration changed the $3 million audit findings – and not just a little.

The original audit, provided to the administration from PCG, and to the Attorney General from the administration, bluntly reports:

“4.6 Key Case File Findings
PCG’s Case File Audit did not uncover what it would consider to be credible allegations of fraud, nor any significant concerns related to consumer safety.”

But that wasn’t the result the administration wanted them to reach, so the Martinez administration just erased that finding from the final report and then publicly announced that the audit did in fact find fraud.

In court documents filed in Santa Fe District Court in November, State Auditor Hector Balderas contends that HSD officials admit they altered that original audit, removing any reference to not finding fraud, before providing it to him.

Balderas went back to court in November seeking the unaltered audit by subpoena.  The State Auditor's Office also demands answers as to why Martinez's HSD Secretary altered a public record.

Though the investigation is still underway, it should be noted that New Mexico law makes it a felony for a public official to alter a public record

Let’s be clear:   
  • The Martinez administration spent $3 million for an audit to find fraud, an element required by law to stop payments and replace the providers. 
  • There wasn’t any fraud and that’s what the auditors reported.   
  • The administration was already working with Arizona firms on takeover plans and without a finding of “credible allegations of fraud” they couldn’t proceed.   
  • So, the administration just erased the facts that contradicted their agenda then made up new facts and did what they planned to do all along. 
Read the Court filings from the State Auditor below.






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