Reformers question timing of audit results and loan repayments

When Socorro Electric Coop general manager Polo Pineda and SEC employee Kathy Torres were terminated for cause, due to dubious loans that they took out for themselves from SEC funds, SEC Board President Paul Bustamante assured the media that the loans, though perhaps questionable, had been repaid in full sometime in the months of May to June of 2010. The timing of the repayments has been called into question by some SEC reform advocates, who note that Paul Bustamante, in his role as president of the board of trustees, was, during that time frame, the sole person with access to the results of the audit report presented by Bollinger, Segars, Gilbert & Moss, L.L.P., the firm that has audited the SEC for the last eleven years.

C.Y.A.?

According to Randy Robbins of Bollinger, Sears, Gilbert, and Moss, L.L.P., as confirmed in a telephone conversation with SEC Trustee Charlie Wagner on August 26th, 2010, the audit results were forwarded to SEC President Paul Bustamante on or about May 13th, 2010. At that time, Mr. Bustamante was the only SEC board member with access to the audit results. Some reform advocates are questioning the timing of the loan repayment - May and June - given that Paul Bustamante received reports of the "irregularities" in the financial statements on May 13th. Speculation is running through the rumor mill asking whether Bustamante may have leaked audit information to Polo Pineda and/or Kathy Torres, after which they hustled to repay the dubious loans in order to cover their tracks (or at least cover their tail-ends, during any ensuing investigation).

SEC attorney Dennis Francish's actions also questioned

Also questionable, in the eyes of some reform advocates, is the rush to give Kathy Torres a long term guaranteed employment contract, an idea which appears to have been championed by SEC attorney Dennis Francish. Some in the reform movement have wondered why Francish was so quick to suggest a cushy, guaranteed position for Kathy Torres, especially in light of the events that have transpired since then, which have resulted in Ms. Torres' termination. This in and of itself probably does not constitute grounds for action against Francish, but much of his other behavior may be ripe for complaint, according to some SEC reform advocates. They point to the fact that Francish has essentially sued the folks he is purportedly representing, when the SEC filed suit against Charlene West "and all unnamed member-owners" of the coop.

Socorro News has no position on whether Dennis Francish should be formally reprimanded for his actions; this is a question between SEC member-owners and the Disciplinary Board of the New Mexico Supreme Court, which handles complaints against attorneys in New Mexico. Any SEC member-owner who wishes to file a complaint against Francish can do so at the link provided, and the NM Supreme Court's disciplinary board will determine if the complaint has merit or not.

Jury still out on this one

It's clear that the timelineof the loan repayments looks suspicious, but frankly there is not sufficient information - at this time at least - to draw any firm conclusions. However, this ought to be one of (the many) things that should be investigated during the ongoing suits between SEC member-owners and SEC Trustees. In short, this falls into the category of information that might make a person scratch his head and say, "hmm", but is, as of yet, nothing on which one would want to hang one's hat. Socorro News will keep you posted as new information is forthcoming.