Monday, May 11, 2009

Richardson Agrees to Independent Audit

This just in from the Governor's Office regarding proposed independent audit of state investments,:
SANTA FE – Governor Bill Richardson today agreed to work with the Legislature to commission an independent review of investment practices and policies, including the use of third-party marketers.

The state Board of Finance and the Legislative Council Service will work on the scope of the review, along with an appropriate budget.

“While the State Investment Council has produced impressive investment results during the past six years, I welcome an independent review and any recommendations that will improve the state’s practices,” Governor Richardson said. The Governor noted that investment performance for the Land Grant Permanent Fund through the first quarter of 2009 placed it in the top 5% of public funds in the country. On a one-year and three-year basis, the performance is in the top 30% of public funds nationwide.

Governor Richardson last week moved to ban third-party marketers, also known as placement agents, who earn substantial fees from fund managers that secure state investments.

Governor Richardson also agreed today to explore more legislative representation on the State Investment Council. The Governor last month vetoed a bill, which was drafted and passed without the Governor’s input, that would have expanded the SIC and given the Legislature a majority of the appointments to the board.

“I’m happy to work with the Legislature on changes to the makeup of the council,” Governor Richardson said.