The federal investigation keeping Gov. Bill Richardson from Washington could affect administrative work at UNM as well.
On Jan. 5, Richardson withdrew his name from the commerce secretary post in President-elect Barack Obama's administration. He cited the federal grand jury investigation of $1.5 million in transportation contracts given to CDA Financial Products, a California-based corporation.
Donations totaling more than $100,000 to Richardson's presidential campaign from CDA President Eric Rubin provided the basis of the inquiry.
David Harris, UNM's vice president of Business and Finance Administration, was one of
Richardson's top aides at the time the contracts were given. Harris has been questioned by the FBI and is retaining a criminal lawyer.
Harris declined an interview.
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In a statement, Richardson denied any foul play in the contract process.
"Let me say unequivocally that I and my administration have acted properly in all matters and that this investigation will bear out that fact," he said. "But I have concluded that the ongoing investigation also would have forced an untenable delay in the confirmation process."
The New Mexico Finance Authority was responsible for pushing the transportation contracts through to CDA Financial Products, and Harris was executive vice president of the NMFA when the $1.5 million was awarded to CDA.
Timothy Lowrey, Faculty Senate member, said UNM's connections to the investigation negatively affect the University's image.
"The University has been pulled into the investigation which has politics front and center," he said. "This appears to be about politics, so it's unfortunate that . UNM has been named locally, nationally and internationally in this investigation."
Regent Carolyn Abeita said David Harris has not been named in the investigation and that it is therefore too early to tell how the investigation will impact UNM.
"Right now, because this is an investigation and he was involved at the time, I think we have to just wait and see what that investigation evolves to," she said. "Other than that, I think it's premature to say anything on that."
University spokeswoman Susan McKinsey said UNM has not been impacted yet by the investigation. She said investigators have not requested any information or documents related to this investigation.
"The work of the University is proceeding normally as we prepare for the new semester and the legislative session," she said.
However, the Department of Justice has subpoenaed UNM in the past for documents related to revenue bond transactions, involving CDA Financial Products and J.P. Morgan, that took place more than five years ago, McKinsey said.
"The only communication the institution has had has been in connection with subpoenas from the Department of Justice Antitrust Division," she said. "We were asked to provide information on revenue bond transactions in 2002 and 2003."
McKinsey said UNM was not in danger of being implicated in the '02 and '03 investigations.
"We are not the subject of investigation," she said. "We have simply been asked to provide information."
McKinsey said it's important to remember that this investigation is separate from the one involving the New Mexico Finance Authority and CDA Financial Products.
"They may have things that tie in, but they really are separate," she said.
Lowrey said it's unfavorable for UNM to be associated with a federal investigation, regardless of its subject or outcome.
"It may turn out that there are no indictments coming from this, but it's unfortunate that UNM has to be named in an investigation," he said. "There could be some indictments as well as loss of money, it seems to me. I hope that's not the case."
Abeita said it would be hasty to speculate on how the federal investigation will affect UNM.
"It's kind of difficult to say anything until you know what kind of direction the investigation is going in or anything like that," she said.
