SILVER CITY, N.M. (KRQE) – New Mexico Attorney General Raúl Torrez on Monday filed an emergency motion in court to stop Western New Mexico University (WNMU) from paying a near $2 million severance payment to departing President Dr. Joseph Shepard.
Torrez requested that the court grant a temporary restraining order to stop the payment, stating in part that it is “an egregious misuse of public funds.”
The New Mexico Department of Justice placed the blame on the five-member board of regents, arguing the board acted “contrary to its fiduciary duty to the university, pledged public funds for a severance payment that is not supported by an employment contract, is not accompanied by legitimate consideration to the State, and is unconscionable as a violation of public policy and the public interest.”
The NMDOJ claims the $1,909,788 severance payment to Shepard would be more than three times what he would have received had he been terminated under the provisions of his existing contract.
“Dr. Shepard voluntarily resigned, and the Board had ample opportunity to negotiate a reasonable or no-cost separation agreement. Instead, they chose to pledge nearly $2 million in taxpayer money without justification or consideration of the public good,” Torrez said in a news release.
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The NMDOJ argued the temporary restraining order is necessary to prevent the board from disbursing the severance payment before a full evidentiary hearing on the state’s application for preliminary injunction.
The department also requested that the court hold a hearing before Jan. 15, the deadline for the payment as stipulated in Shepard’s separation agreement, or issue a stop order until the hearing can be scheduled.
Lastly, the DOJ asked the court to enjoin the board, prohibiting them from disbursing the payment until a special audit requested by WNMU, the board, and Shepard is complete and the report is made available.
Shepard’s resignation is set for Jan. 14 and came after allegations of improper spending at the school surfaced.
A state audit revealed that WNMU spent more than $200,000 on travel and lodging from July 2018 to June 2023. The audit also found credit card spending totaling more than $145,000, which included furnishings for the president’s residence. Shepard disputed the audit’s finding and told the regents that media coverage of the school’s financial matters has been a distraction to its accomplishments under his leadership.
Last week, the Associated Press reported that Gov. Michelle Lujan Grisham asked for the immediate resignation of the regents at WNMU due to the audit’s findings.