Multiple Investigations Ongoing into Spaceport America Finances

Daniel Hicks

The Santa Fe New Mexican reports that State Auditor Brian Colón is investigating the New Mexico Spaceport Authority (NMSA), and the state Economic Development Department has hired an outside accounting firm to perform an independent forensic audit of the organization that runs Spaceport America.

The investigations followed claims by NMSA’s former chief financial officer that CEO Dan Hicks had pressured him to ignore accounting procedures. Hicks is currently on administrative leave pending the outcome of the inquiries.

Colón said Monday he couldn’t release the complaint that prompted him to open the investigation, but said he began the inquiry in June, one day after former Chief Financial Officer Zach De Gregorio resigned, citing frustration with the New Mexico Spaceport Authority Board’s response to his whistleblower complaint about CEO Dan Hicks’ alleged attempts to get him and others to circumvent accounting protocols.

“Daniel Hicks has shown gross mismanagement and abuse of authority,” De Gregorio wrote in his complaint. “He has consistently applied pressure to the CFO and the accounting staff to bend the rules. This pressure has reached the point where I feel like my ethical ability to act as a check and balance for financial decisions in the Agency is compromised. This has created a toxic environment where there is no longer adequate internal controls at the NM Spaceport Authority, which could lead to fraud.”

De Gregorio also accused Hicks of attempting to block and interfere with his communications with state Economic Development Department Secretary Alicia Keyes and the Spaceport board.

“Daniel Hicks often talks about that it is his money and his authority and he should be able to do what he wants,” DeGregorio wrote in his complaint. “Zach De Gregorio reminds him that it is the State of New Mexico’s money and the board’s authority and the Agency has to follow the process.”

The newspaper also reports that former NMSA employee Karen Barker has filed a complaint saying Hicks had created a toxic work environment and retaliated against her after she complained she was being paid less male counterparts.

Global Telecom Company Signs Lease at Spaceport America

LAS CRUCES, NM (New Mexico Spaceport Authority PR) — HAPSMobile Inc., a subsidiary of Japan’s telecommunications operator SoftBank Corp. (TOKYO: 9434) has chosen New Mexico’s Spaceport America for test operations and development of a specialized communications platform designed to provide internet connectivity to hard-to-reach places around the globe, Economic Development Cabinet Secretary Alicia J. Keyes announced today.

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Governor Appoints 3 New Members to New Mexico Spaceport Authority

Sunset at the “Virgin Galactic Gateway to Space” terminal hangar facility at Spaceport America. (Credit: Bill Gutman/Spaceport America)

SANTA FE, N.M. (NM Economic Development Department PR) – Gov. Michelle Lujan Grisham has appointed three new members to the New Mexico Spaceport Authority and re-appointed four other members, Cabinet Secretary Alicia J. Keyes announced today.

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Spaceport America and Virgin Galactic: The Numbers Never Added Up

Richard Branson and his children hang out with Project Bandaloop dancers during the dedication of the Virgin Galactic Gateway to Space facility. (Credit: Douglas Messier)

Fourteen years ago, Virgin Galactic and New Mexico promised “tens of thousands” of tourists would fly to space from Spaceport America by 2019. Total thus far: 0.

by Douglas Messier
Managing Editor

When they announced in December 2005 that Virgin Galactic would locate its space tourism business in New Mexico, Virgin Founder Richard Branson and Gov. Bill Richardson made a number of eye-popping claims about why taxpayers should back a plan to build the Southwest Regional Spaceport to serve as the space tourism company’s home base:

  • $331 million in total construction revenues in 2007;
  • 2,460 construction-related jobs;
  • $1 billion in total spending, payroll of $300 million and 2,300 jobs by the fifth year of operation; and,
  • $750 million in total revenues and more than 3,500 jobs by 2020.

Virgin Galactic would sign a 20-year lease as anchor tenant and pay fees based on the number of launches it conducted. New Mexico would use the spaceport, Virgin’s presence and the funds generated to develop a large aerospace cluster.

Surprisingly, New Mexico would spend more money, $225 million, to develop a facility now known as Spaceport America than the $108 million that Branson planned to spend on developing a fleet of five SpaceShipTwos and WhiteKnightTwo carrier aircraft.

Among all the big numbers in the announcement, there was a truly astounding one that was deemed so important it was mentioned twice. (Emphasis added)

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