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New Mexico Passes Law to Remove Governor from Investment Council

After an embarrassing federal investigation into corruption charges at the New Mexico State Investment Council, legislators voted to remove the governor from chairing the board that approves decisions on where to invest the state’s pension money.

The current governor, Susana Martinez, is expected to sign the bill. She has sided with critics of the current system and has said that neither she nor any other politician should manage the state’s investments. If signed into law, the changes will be put into place in 2013, according to the Associated Press.

The drive to lessen the role of politics in investment decisions stems from a federal investigation into the role played by a previous New Mexico governor, Bill Richardson. He was alleged to have channeled funds into projects that he favored. No charges have yet been announced.

New Mexico’s Investment Council manages $15 billion in pension funds, including $1.3 billion in private equity investments.