Lawmakers told no NMFA tax change planned

Posted at: 10/12/2012 2:22 PM
By: BARRY MASSEY Associated Press

SANTA FE, N.M. (AP) - The New Mexico Finance Authority's top executive says Gov. Susana Martinez's administration isn't pushing to scale back the agency by taking away its source of funding from tax revenues.

CEO John Gasparich made the comments to a legislative committee on Friday, saying it would create a "firestorm" of legal problems if tax revenues flowing to the authority were diverted to the state's main budget account.

The Legislature would have to approve such a change.

The authority functions as a bank for government infrastructure projects and is under scrutiny because its financial audit was faked earlier this year.

The authority ex-controller has been indicted for securities fraud and forgery. Gasparich said the authority plans to hire a permanent internal auditor, who will report to the agency's governing board rather than management.

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