NM Auditor says no evidence of misuse of $5.3M at troubled water utility

Vivian Fuller, a resident of Sunland Park, told Doña Ana County Commissioners in April that concerns about the safety of drinking water are not new in Sunland Park. (Danielle Prokop / Source NM)

The New Mexico Office of the State Auditor released the findings of an investigation into a troubled southern New Mexico utility Tuesday, concluding that there was no evidence of misuse of $5.3 million in public funds.

The New Mexico Environment Department called for multiple state agencies to take a closer look at the Camino Real Regional Utility Authority in March, alleging potential “fraud, waste and abuse” of $5.3 million awarded by the Water Trust Board in 2013.

New Mexico environmental officials requested the investigation after a series of drinking water disasters in late 2023 revealed that the utility had been sending water with “high levels of arsenic” to people living in Sunland Park and Santa Teresa for more than a year, without alerting the public.

The most recent tests show that CRRUA’s drinking water arsenic levels remain within federal limits, but community trust has eroded .

The board granted the funding for the construction and operation of the Santa Teresa Arsenic Community Treatment Plant, and that the allegations were that the money was not spent for the correct purpose, or went unspent entirely.

The auditor’s office reviewed documents provided by the New Mexico Finance authority and the utility, according to a Sept. 24 statement.

All loans and grants related to the $5.3 million were used for construction and spent between August 2015 and July 2017, the auditor’s findings said.

All the requests to the finance authority were approved by the environmental agency and there was “no documentation to support misuse by CRRUA of these specific funds,” according to a statement releasing the findings.

CRRUA did not make anyone available for an interview Tuesday, and instead issued a statement, with Executive Director Juan Crosby saying he was “gratified” by the outcome.

“We acknowledge that operational issues have resulted in varying degrees of mistrust among some CRRUA customers,” Crosby said in the written statement. “Hopefully, the positive outcome of OSA’s investigation will put many of those concerns to rest and with CRRUA’s continued system improvements help gain customer confidence.”

In the past year, the utility was required to upgrade two filters at arsenic treatment facilities, and raised rates for water after failing to implement an increase over the last five years.

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