Fresh off a stinging report saying that it failed to properly oversee a state-owned facility rife with fraud, waste and abuse, the New Mexico Spaceport Authority (NMSA) Board of Directors approved spending up to $20 million on capital improvements to Spaceport America.
Outside investigation concluded former Executive Director Dan Hicks ignored spending regulations, submitted falsified travel documents, and wasted hundreds of thousands of dollars on unnecessary travel and unrealistic projects
Hicks portrayed by staff as an incompetent manager who bullied employees
Ex-CFO Zach DeGregorio facilitated Hicks’ violations by improperly approving travel and ignoring rules and statutes
Former New Mexico Spaceport Authority Board Chairman Rick Holdridge accused of allowing violations to continue
by Douglas Messier Managing Editor
A highly critical investigation of Spaceport America has determined the New Mexico state government should consider formal criminal and/or administrative charges against former Executive Director Dan Hicks and former Chief Financial Officer (CFO) Zach DeGregorio for their mishandling of the spaceport’s finances.
“As detailed above, there is evidence to conclude that Dan Hicks violated criminal and administrative statutes, as well as the State of New Mexico Governmental Compliance Act, and Governor Lujan Grisham’s Code of Conduct, during his tenure as Director of the Spaceport,” the report said.
The Santa Fe New Mexicanreports 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.