Ex-city of Albuquerque inspector general sues over ouster

The city of Albuquerque’s former independent watchdog alleges in a new lawsuit that she was berated and ultimately ousted after being accused of unfairly targeting Mayor Tim Keller in her agency’s investigations.

The legal action comes at a time when the city has yet to replace former Inspector General Melissa Santistevan or release the remaining four Office of Inspector General investigations that Santistevan urged earlier this year to be made public.

In the intervening months since her four-year contract wasn’t renewed, a private contractor hired by the city criticized the way the OIG investigated cases and alleged the investigations were biased.

Just recently, a top city administrator issued a public statement calling into question every report issued by the OIG department since Santistevan was appointed by the City Council in 2021.

Keller told the Journal that he wants the four unpublished investigative reports to be released. “I wanted them to come out as soon as possible because I’m not concerned about what’s in them,” he said.

It’s unclear whether the reports will be published this year. The Accountability in Government Oversight Committee must first review them, but neither interim Inspector General Peter Pacheco nor city spokeswoman Leslie Rendon could say when the group will meet next.

The city’s OIG, which became an independent agency in 2011, is a nonpartisan department that investigates complaints of waste, fraud and abuse at City Hall. It currently employs three investigators, including Pacheco, a 17-year veteran.

OIG investigations in recent years found the city’s $228,000 purchase of artificial turf for a soccer field violated the state anti-donation clause, and in 2022, the OIG concluded that nearly $300,000 in COVID-19 relief funds meant to stabilize community child care centers improperly went to ineligible city employees, some high ranking. The city managers disputed those findings, but over the years also agreed with some of the OIG recommendations for improvement and accountability.

Santistevan’s lawsuit, filed in state district court in Albuquerque, names as defendants, Keller; current and former chief financial officers, and four members of the city’s Accountability in Government Oversight Committee, which is made up of individuals appointed by the mayor and City Council. The AGO interviews and nominates candidates for inspector general and meets in closed session to review OIG investigations before they are released to the public.

“The Mayor through his surrogates, including named defendants in this case, accused Mrs. Santistevan of targeting Mayor Keller, and they became belligerent, threatening, and intimidating toward (her) at AGO meetings. They berated her in front of her staff and others in attendance causing extreme stress, fear and anxiety to Mrs. Santistevan,” the lawsuit states.

Santistevan’s lawsuit states that she was “not targeting Mayor Keller but was following up on investigating complaints of waste, fraud and abuse.” Her department based its findings on facts, and “not on any personal or political opinions.”

Asked for comment, Rendon said in an email, “The Accountability in Government Committee cannot comment on Ms. Santistevan’s lawsuit at this time because the lawsuit has not yet been served, and the City’s general policy is not to comment on pending litigation.”

The lawsuit, which alleges retaliation, violation of the state Whistleblower Protection Act and discrimination, among other claims, contends that Santistevan was among the lowest-paid city managers and was set to get a pay raise until the chairmanship of the AGO changed in 2023.

Under the new Chair Victor Griego, she never got the raise and the AGO informed her last May her contract would not be renewed, the lawsuit states.

The committee is comprised of five members of the public. The mayor or a designee and one City Council member are ex-officio non-voting members. The appointment of members is subject to City Council approval, and the mayor and Council alternate appointing members when vacancies occur.

City ordinance doesn’t permit the AGO to refuse release of a completed OIG investigation upon review, but the group can disapprove and issue a cautionary statement when the investigative report is made public.

In late August 2024, the oversight committee, including Griego, released the OIG’s annual report stating, “The OIG consistently conducts thorough investigations that yield recommendations aimed at improving City processes, enhancing efficiencies, and generating cost savings for the citizens of Albuquerque.

“The AGO Committee has found the OIG staff to be a highly professional and well-respected resource for both the residents and the administrative government of Albuquerque. As an independent and objective body, the OIG provides the City with crucial expertise in pursuit of its goals. The OIG is undoubtedly an essential component of the City of Albuquerque’s government.”

But several months later, the lawsuit states, Santistevan presented to the AGO reports of nine investigations into abuse, waste and fraud by the city administration.

“Several of the reports of investigation were received with great resistance by the Defendants, who clearly wanted to stall releasing the reports because of their concerns of the effect on Mayor Keller during his reelection campaign, which had already begun for the November 2025 citywide election,” the lawsuit alleges.

“Under the direction of Defendant Griego, the AGO started canceling and not scheduling meetings to delay presentations of the final investigative reports previously provided to the AGO members,” the lawsuit alleges.

In an unusual notice issued in late February of this year, Santistevan wrote that the pending reports “deal with fraud, waste, or abuse that impact our City. Some of these reports have been completed for months without citizen awareness.”

In a Journal interview, she wouldn’t disclose the topics.

While releasing three of the nine reports in April, the AGO held back the remaining six and announced all nine would be reviewed by outside contractor REDW for “quality assurance.” Meanwhile, the City Council hired a new Inspector General on June 13, but the candidate didn’t take the job, citing pay issues.

The city announced last month that REDW concluded that OIG investigators failed to ensure that they understood city processes when conducting investigations, failed to produce evidence to support their conclusions and conducted one-sided investigations, disregarding evidence that might have supported different conclusions. The report also concluded that Santistevan failed to properly supervise the office or establish quality control procedures, according to the city’s website.

“This review confirms concerns the (Keller) administration has raised about the OIGs’ professionalism, bias, and compliance with standards,” stated Chief Administrative Officer Samantha Sengel on Oct. 6. “The administration has repeatedly raised concerns that the OIG failed to give City Departments the opportunity to provide information or respond to allegations, did not understand City operations, and made unsupported findings.”

“We hope the Council will select a new Inspector General who will take these issues seriously and fix the many problems that REDW identified,” said Sengel.

REDW’s report calls the OIG’s prior reports into question, Sengel argued. “It’s not clear that anyone can rely on the information or conclusions included in any IG report published in the past four years,” Sengel said.

In fiscal year 2025, the OIG issued 16 reports into alleged waste, abuse of power, and other malfeasance. Nine of the complaints were substantiated or partially substantiated, with six unsubstantiated, and one inconclusive. The prior year, the OIG completed 27 reports, of which 17 were partially substantiated or substantiated.