In a startling revelation uncovered by a year-long investigation conducted by KRQE News 13, it has come to light that state officials in New Mexico secretly disbursed over $27 million in public funds through confidential settlements. These transactions, involving claims of negligence, discrimination, sexual harassment, and civil rights violations, were systematically concealed from public scrutiny for years—devoid of hearings, public statements, or oversight.

Hidden Settlements and a Lack of Transparency

The investigation revealed that a small group of state bureaucrats quietly authorized and dispersed these payments without informing taxpayers or elected officials. The secrecy surrounding these settlements shrouded significant cases affecting the public interest, resulting in a misuse and waste of taxpayer dollars and a severe violation of public trust.

One glaring example was the 2015 incident involving the National Hispanic Cultural Center, where a visitor suffered a serious injury after falling into a poorly marked, six-foot-deep hole on the museum parking lot. The case concluded with a $350,000 out-of-court settlement—a payment unknown to the public until recently.

More broadly, New Mexico’s Risk Management Office was identified as the key body responsible for handling these claims, ranging from human rights complaints to medical negligence and whistleblower retaliation. Despite the office’s critical role in evaluating and managing such liability claims, the process was mostly concealed from public view.

Fast-Tracked Settlements and Political Timing

The investigation further uncovered troubling expediency in resolving politically sensitive settlements. For example, in 2014 under Governor Susana Martinez’s administration, five Department of Finance employees lodged allegations of discrimination and retaliation against high-level officials, including then-Secretary Tom Clifford. The claims were settled for $675,000 within just 18 days—remarkably fast compared to the typical two-year resolution timeframe for similar complaints.

Evidence showed the settlement was paid the day before Governor Martinez’s re-election, and two months before the completion of any formal investigation into the allegations. This rushed approach raised serious questions about due diligence and suggested possible political motives to suppress scandal ahead of the election.

Diverse Cases, Major Costs

A wide range of cases was buried within these secret settlements:

Medical Negligence: The University of New Mexico Hospital (UNMH) accounted for $11.5 million of these payouts since 2014. These included a million-dollar settlement related to botched elective back surgery and $725,000 for a fatal case of medical misdiagnosis.
Transportation Negligence: A $200,000 settlement in 2013 followed the death of a woman who swerved to avoid cattle on a state road in Quay County.
Sexual Misconduct and Retaliation: $400,000 was paid for sexual harassment allegations involving a probation officer, and $900,000 went to a state investigator claiming whistleblower retaliation.
Workplace Disputes: A Northern New Mexico College faculty member received $295,000 after wrongful termination claims, and $100,000 was paid to a juvenile facility administrator over allegations of discrimination and hostile work environment.

These figures collectively underscore the heavy financial burden such secret agreements impose on taxpayers without accountability.

Calls for Transparency and Legislative Action

Ken Ortiz, who became Cabinet Secretary overseeing Risk Management last year, expressed shock upon discovering the extensive secrecy that surrounded these settlements. He mandated that any future settlements under his watch be disclosed publicly in a timely manner, consistent with state law, emphasizing the public’s right to understand how their tax dollars are spent.

The revelations have also prompted legislative attention. State Senator Sander Rue criticized the secrecy as a breach of public trust and championed legislation to eliminate confidentiality clauses that shield settlement details from public disclosure. The bill received overwhelming support in the legislature and is awaiting the governor’s signature.

Governor Michelle Lujan Grisham has signaled her intent to sign the risk management transparency bill, marking a pivotal step towards greater openness and accountability in disbursing public funds.

Conclusion

The hidden $27 million disbursed in confidential settlements by New Mexico’s state officials highlights significant flaws in government transparency, oversight, and accountability. As reforms are poised to bring these transactions into the light, taxpayers can expect enhanced vigilance in how their money is protected and spent—a crucial stride in restoring public trust and ensuring government operates in the public’s best interest.