New Mexico AG files motion to halt $1.9M buyout for WNMU president

New Mexico AG files motion to halt $1.9M buyout for WNMU president 10 p.m.

New Mexico Attorney General Raúl Torrez filed a motion to halt a $1.9 million buyout for the departing president of Western New Mexico University.

SILVER CITY, N.M. — New Mexico Attorney General Raúl Torrez filed an emergency motion to stop Western New Mexico University from paying nearly $2 million out to its former president.

Last month, Dr. Joseph Shepard resigned as president of WNMU after a state audit found he spent $316,000 of university money on lavish international trips, furniture and other personal expenses over the course of several years. During the investigation, the state auditor’s office blamed university management and the WNMU Board of Regents for not upholding their responsibilities and enforcing travel rules. 

After this, the board approved a separation agreement for Shepard. The agreement included a $1,909,788 payment for Shepard, a five-year teaching contract worth $200,000 a year, an eight-month sabbatical and the option to teach remotely. 

That agreement is just one of the many reasons New Mexico Attorney General Raúl Torrez believes it’s not a fair deal and it’s especially not one New Mexicans should have to pay for.

“I think New Mexico taxpayers and members of that community, leaders in that in that institution, including the senate faculty, who voted unanimously to oppose this deal, they deserve answers,” Torrez said. “They [WNMU] have a fiduciary duty to manage public funds and public resources as part of a sacred trust.”

The New Mexico Department of Justice is requesting the court temporarily block the $1.9 million payment before a hearing can happen.

“I don’t think it makes any sense to the students of Western, to the faculty at Western, to the taxpayers of this state that somebody who is at the center of this much controversy about these types of expenditures to be given $2 million and a guaranteed five-year contract to $200,000 a year in the business department,” New Mexico Attorney General Raúl Torrez said.

Torrez said, on top of the controversy, the deal itself is worth more than three times what Shepard would have gotten with his old contract.

“We need to slow this process down before we rush to finalize an agreement that tears up the old employment contract that he had, and substitute it with this ludicrous golden parachute,” Torrez said.

“I think we have some pretty obvious questions about how a University would continue to have students that have substantial needs, faculty members that are constantly asking for additional resources, and yet somehow they think it’s justifiable to hand someone $1.9 million,” Torrez said.

The NMDOJ is requesting the hearing be held before Jan. 15 – the payment date – or issue an ex-parte order until the hearing can be scheduled. They are also requesting the court prohibit the board from disbursing the payment until a special audit – requested by WNMU, the regents and Shepard – is complete and a report is available.

Last week, Gov. Michelle Lujan Grisham sent a letter demanding the entire board step down.

The board met for less than three minutes Tuesday, Jan. 7, as only Trent Jones remained as a regent. During roll call, the secretary confirmed the other regents – President Mary Hotvedt, Lyndon Haviland, Dal Moellenberg and Daniel Lopez – resigned.

Last week, Hotvedt reportedly told the president of the WNMU Faculty Senate that each member would comply with the governor’s order. The faculty senate issued a vote of no confidence in the board and called on them to rescind the agreement.

New Mexico Higher Education Secretary Stephanie Rodriguez described the buyout as “gross negligence and mismanagement of taxpayer funds.” Her department is also investigating this.

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