State auditor concludes investigation, finds CRRUA spent money to build arsenic treatment plant appropriately

Update: CRRUA Executive Director Juan Crosby made comments on the investigation's findings this morning.

“We are gratified with the outcome of the OSA investigation, and the transparency it provides,” Crosby said. "We acknowledge that operational issues have resulted in varying degrees of mistrust among some CRRUA customers. Hopefully, the positive outcome of OSA’s investigation will put many of those concerns to rest and with CRRUA’s continued system improvements help gain customer confidence.”

SANTA FE, New Mexico (KVIA) -- The New Mexico Office of the State Auditor (OSA) just finished its investigation into the Camino Real Regional Utility Authority (CRRUA), finding that the utility did not misuse funds in the construction of the Santa Teresa Arsenic Community Treatment Plant.

The investigation began following a request by the New Mexico Environment Department (NMED) from March of this year.

"The investigation focused on potential fraud, waste, and abuse of $5.3 million in public funds awarded by the Water Trust Board in June 2013 for the construction and operation of the Santa Teresa Arsenic Community Treatment Plant," an OSA spokesperson explained Tuesday. "As part of its investigation, the OSA sought clarification from NMED on the specific funds in question. NMED identified Water Trust Board funding provided for the plant’s construction, stating that the system’s improper operation and maintenance from 2021 to 2024 raised concerns regarding the use or misuse of the funds, alleging, in part, that '…the money was not spent for the purpose it was granted, or it was not spent at all…'"

The OSA reviewed New Mexico Finance Authority (NMFA) and CRRUA documentation, and found that from August 2015 to July 2017, the utility allocated all loans and grants, totaling $5.3 million, appropriately to the construction of the treatment plant. That is according to the OSA's investigation's findings.

"All CRRUA's draw requests and requisitions to NMFA were approved by NMED at the time of disbursement, with no documentation to support allegations of misuse by CRRUA of these specific funds," the OSA spokesperson explained. "Also, the OSA has no oversight role in the operations of this wate treatment plant."

OSA adds that the allegations remain "unsubstantiated."