State Auditor Colón Announces Results Of Special Audit Into Secret Settlements



State Auditor Colón announced the results Monday morning of his investigative examination and special audit of millions in secret settlement payouts by the General Services Department. The special audit was designated as a result of severe allegations regarding the process in which GSD handled certain settlement payouts. Auditor Colón issued the following statement on the matter:

“We should never use taxpayer money to pay out secret settlements,” said Auditor Colón. “The results of the special audit are incredibly concerning. All New Mexicans should be deeply offended with the findings in this special audit. I have referred the results of the examination to the Office of the Attorney General, the 1st Judicial District Attorney’s Office and the newly formed and critically important NM Ethics Commission.”

The special audit was designated after the Office of the State Auditor received allegations concerning questionable expenditures and how GSD handled secret settlement payouts. The current administration’s GSD worked closely with the OSA in conducting this audit and as a result the OSA is encouraged by the current administration’s commitment to correcting the process, identifying and addressing weaknesses, and ultimately ensuring that a thorough, documented process supports any funds disbursed.

New Mexicans concerned about potential instances of fraud, waste, and abuse should contact the Office of the State auditor. Reports may be made anonymously through our website at or by calling 1-866-OSA-FRAUD. You may also speak to an investigator by calling 505-476-3800.