New Mexico Treasurer Douglas M. Brown has named a new six-member management team that he said would “lead the way in restoring public confidence and trust” in the State Treasurer’s Office.
“We are building a management team with the highest qualified people whose credentials meet job descriptions,” Brown said in announcing the new managers.
The shakeup comes after the last two elected state treasurers were indicted on federal extortion charges in September, and just two weeks after external fiscal and forensic auditors found numerous problems in the office’s procedures and record-keeping.
The team members have all spent many years in state government, several of them serving with the Treasurer’s Office. The appointments are effective immediately, said Jodi M. Porter, the office’s public relations officer.
“Some are already on the staff, and the rest will be on board at the first of the year,” Porter said. The new hires as well as the existing employees underwent an extensive background check before the appointment, she said.
Elaine Olah, the deputy treasurer who led the agency after federal authorities arrested former Treasurer Robert Vigil on federal extortion charges, will remain as deputy treasurer at $83,450 a year. Brown credited Olah with “leading the department through a difficult time.” Olah has been in state government for 26 years, with 14 years of executive experience. She has an MBA from Highlands University.
Scott Stovall, who had been director of the New Mexico State Board of Finance, was appointed to the new position of cash manager.
“He’ll be overseeing the treasury’s investments, forecasts, cash-flow analysis, and public fund analysis,” Porter said. “Scott will be responsible for a huge department.”
Stovall has been with the Board of Finance since 1992, and was named director in January 2005. He will earn $95,000 a year in the new position.
Dennis Hazlett, former deputy commissioner for public lands in the New Mexico Land Office, has been named assistant state treasurer to replace Ann Marie Gallegos. She was one of five employees Brown fired in November because they did not have the technical expertise to perform their jobs. Hazlett, who has 30 years of financial and public administration experience, will earn $80,000 a year in his post.
Michael Vigil, who had been an information technology manager in the treasury, was named chief information officer. He is no relation to Robert Vigil, according to Porter. Vigil will earn $64,928 a year.
Victor Vigil was named the assistant state cash manager in the state bank accounts bureau. Also no relation to Robert Vigil, he has 15 years of financial and accounting experience with the Treasurer’s Office. He will earn $63,841 a year.
“It’s not a new position, but it has a new name,” Porter said. “It had been called the reconciliation bureau, but that didn’t accurately reflect its duties.”
Judy Espinosa is the new internal control management program officer, where she will monitor the comprehensive system of internal controls and key business processes established within the agency. Her salary is $61,058 a year.
Espinosa is the longest-standing employee in the office. She has worked for six state treasurers and has served in every department.
The new staff will be implementing and overseeing new policy guidelines developed by the State Board of Finance and adopted by the Treasurer’s Office in December.
The guidelines are designed to provide more openness and accountability in the office’s investment of short-term funds, such as bond proceeds and tax revenues. The new guidelines are an attempt to eliminate opportunities for kickbacks as alleged in the multi-count federal indictments against former treasurers Michael Montoya and Robert Vigil.
Montoya, who was treasurer from 1995 to 2002, has pleaded guilty to one count of extortion and agreed to cooperate with the U.S. Attorney’s Office in its investigation. Vigil was treasurer from 2003 until he resigned Sept. 26 as the New Mexico House was considering his impeachment. He has pleaded innocent to more than two dozen counts; his trial is expected to begin in spring 2006.
Brown was appointed interim treasurer in November by Gov. Bill Richardson. He has agreed not to seek the elected position in 2006.
