EL PASO, Texas (KTSM) – The Office of the State Auditor (OSA) concluded that the allegations against the Camino Real Regional Utility Authority (CRRUA) of potential fraud, waste and abuse of public funds remain “unfounded,” the OSA announced in a news release sent Tuesday, Sept. 24.
CRRUA provides water and wastewater service to Sunland Park and Santa Teresa.
The OSA said the investigation against the utility, which the New Mexico Environment Department (NMED) requested on March 14, focused on potential fraud, waste and abuse of $5.3 million in public funds awarded by the Water Trust Board in June 2013 for the construction and operation of the Santa Teresa Arsenic Community Treatment Plant.
As part of its investigation, the OSA said it sought clarification from NMED on the specific funds in question.
NMED identified Water Trust Board funding provided for the plant’s construction, stating that “the system’s improper operation and maintenance from 2021 to 2024 raised concerns regarding the use or misuse of the funds.”
NMED alleged in part that “the money was not spent for the purpose it was granted or it was not spent at all,” read the news release.
After completing its review of documentation provided by the New Mexico Finance Authority (NMFA) and CRRUA, the results of the review confirmed that all disbursements related to the $5.3 million, including both loan and grant components, were specifically allocated for the costs of construction of the Santa Teresa Arsenic Community Treatment Plant, between August 2015, and July 2017, according to the OSA.
“All CRRUA’s draw requests and requisitions to NMFA were approved by NMED at the time of disbursement, with no documentation to support allegations of misuse by CRRUA of these specific funds. Also, the OSA has no oversight role in the operations of this water treatment plant,” read the news release.
The OSA concluded that the allegations regarding the misuse of funds remain unsubstantiated because the entire $5.3 million was disbursed for earmarked costs between 2015-2017.
CRRUA has been under fire for months over water quality and water discoloration issues. The utility says it has been making steady progress in addressing those concerns.
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