More importantly, announcing positive results of an audit report (however meaningless to the FBI’s criminal investigation) that has yet to be finalized could be seen as an effort by the Martinez administration to warn any insiders with direct knowledge of possible improprieties involving the Downs deal that this controversy is going to break in favor of the Governor. And if so, for anyone in such a position, better to get on the right side now, keep quiet and resist any urge to purge to the FBI.

This type of audit should not be confused with forensic audits which are specifically designed to identify and document criminal behavior--theft, fraud, corruption, bid-rigging, etc.  It’s clear from the article that Griego Professional Services was not directed to review any emails, phone records, bank records, etc. of Martinez administration officials involved in the Downs deal. If in fact, there’s no grand jury convened and no subpoenas issued--as the article asserted--it's likely no forensic audit has occurred. 

The FBI appears to still be at the interviewing stage of its investigation.  On the other hand, if indictments are eventually handed down, we’ll know that this early inquiry “cleared” nothing.

PRESSURE ON HECTOR

Balderas

One of our Senior Alligators agrees with that reader that the audit article was pushed by the Martinez administration to try to assure potential witnesses in the FBI investigation that they have nothing to worry about an also to put pressure on State Auditor Hector Balderas. Balderas is running for the Dem nomination for attorney general. The Senior Gator:

The Journal made a front page piece out of "old news" that isn't even actually news. They reported on an audit that wasn't a real audit on the Downs and giving the report a headline that left the impression that  the deal has been cleared as legit. 

I believe they did so so to try to force the hand of State Auditor Balderas. He still has not released a final audit of the Downs. This article lays the ground work for charges that Balderas is politicizing his office even when the facts--in my view--will finally show just how corrupt the Downs deal was. Isn't pressuring state officials conducting investigations somewhat problematic for the ABQ Journal?

And it is indeed "old news" that the Journal splashed. On February 6 the NM Watchdog--a conservative funded news site--released the very same findings from the Griego firm and that the Journal rehashed on Friday.

Balderas' office told the NM Watchdog way back in February that the audit from Griego Professional Services is getting a final look before it is officially released and is not considered complete. And the office repeated that to the Journal:

Our audit review team is currently in the final stages of verifying key information and documents with the independent auditor and Expo’s management.”

If Balderas now comes with changes to the Griego audit, expect the Martinez operatives to launch a full scale-attack on the Dem official, alleging he conspired to make them and the Downs deal look bad by altering the Griego account. But if Balderas looks like he is caving in and going soft on the Downs deal, he could get a political backlash from activist Dems. He is being challenged for the Dem AG nomination by Jason Marks. That's why the Martinez camp planted that story.

The eventual AG nominee will likely face Guv favorite Matt Chandler who was the AG nominee in 2010.  Hector's choice doesn't seem too difficult. Let Chandler blast him for how he handles the Downs deals, Dems and independents aren't going to hold it against him. But if Balderas holds back.....

As our first reader wrote, much of this is positioning. The real story remains the FBI criminal investigation of the Downs deal and where that eventually leads. Actors in that probe still have plenty of reason to worry. Or no reason to worry if they are in the wrong and decide to unburden themselves of a guilty conscience and cut a deal while the deal cutting is good.

BEATING THE DRUM

Dem state Senator and ''14 Dem guv candidate Linda Lopez broke the ice among elected officials when she called for the public release of all the records surrounding the Downs deal--including emails among administration officials and for records that the news media is asking for. She's now joined by ABQ Dem state Senator Tim Keller whose district includes the racino and who is also a candidate for the '14 Dem nod for state auditor. He says:

There has been no response since Sen. Lopez called for full disclosure of all communication relating to the Downs Casino contract and the ‘dark clouds’ remain as cars trickle into the new Casino parking lot.

On behalf of my constituents,  I am reiterating the call for full transparency and an honest account, from start to finish, of exactly how this deal was awarded and the merits for awarding this contract. The Martinez administration must be held accountable to the taxpayers for the lack of community input, unexplained out of state travel, state police expenses, $70,000 in campaign contributions and transparency the people of New Mexico deserve..."

That out-of-state travel Keller references is the now famous (or infamous) alligator hunting trip that the Guv's husband--first gentleman Chuck Franco--took to Louisiana with two taxpayer-paid state cops acting as security. Two of the Downs' owners live in Louisiana.