KGUN 9 On Your Side, Tucson News, Weather & Sports9 On Your Side Investigates: Nogales Mayor lives the high life

9 On Your Side Investigates: Nogales Mayor lives the high life

From Chicago to Mexico City, Nogales Mayor Octavio Garcia-Von Borstel found plenty of uses for the city's credit card.

Nogales, Arizona (KGUN9-TV) - Is the Mayor of Nogales misusing taxpayer dollars? It is a question some Nogales City Council members say they've been asking for more than a year, but have been unable to get any answers.

9 On Your Side was able to get some answers in our own investigation. For months, we pressed city administrators to release the findings of an internal audit report on Mayor Octavio Garcia Von Borstel's city issued credit card. In October, council voted to conduct the audit when they noticed, city expenses had been going up for months. While the audit was being performed, council also voted to take away the Mayor's new city issued vehicle. Records show, he put nearly 60,000 miles on the Chevy Tahoe, which is said to be the same amount of miles totaled by the last 4 Mayors combined. Council also voted to take away his city credit card.

"We had to look into it. We could've ignored it", said Councilman Nubar Hanessian.

The City of Nogales finally released the audit findings (attached to article) to 9 On Your Side, in early December. It shows, the Mayor spent $19,730 for travel and entertainment purposes over a 15 month period. The audit also showed, the Mayor did not turn in any receipts for approximately $6,000 of the charges. The audit offered no explanation on what the Mayor purchased, who he was with or who approved the charges. The city's current accounting manual states, employees must turn in receipts and "documentation for reason of expenditures". The manual also states, employees are given a meal allowance of up to $65 per day.

"Is the Mayor supposed to follow that same process?" asked KGUN 9 Reporter Tammy Vo, while interviewing Vice Mayor, Arturo Garino.

"Yes, everybody" said the Vice Mayor.

9 On Your Side wanted to know, what the Mayor purchased with taxpayer funds? We did some digging and found, the Mayor spent thousands of dollars at fancy restaurants and lavish hotels in Mexico, San Diego, Scottsdale and Chicago. The receipts show (attached to article), he purchased items like lobster, veal, lamb chop, expensive liquor and a movie in his hotel room for $16.99. The hotel confirmed it was an adult movie.

Although the Mayor has refused KGUN 9's multiple requests for an interview, his attorney finally contacted KGUN 9, demanding a retraction. The attorney claims, the $16.99 adult movie made in August of 2008 was an improper charge. The attorney offered paperwork from the hotel, showing a reimbursement on 2/1/10 for the charge. His attorney also sent us a copy of a letter from the Mayor to city staff, claiming, the hotel charged the Mayor in error and that the hotel acknowledged making a mistake.  That is not the case. The hotel manager tells KGUN 9, it routinely removes disputed charges when the customer demands it. The manager also said, the hotel does not admit the charge was a mistake. 

Here's how the Mayor's expenditures compare with other cities for fiscal year 2008-2009:

Mayor Octavio Garcia Von Borstel, Nogales: $15,166

Mayor Bob Walkup, Tucson: $2,406

Mayor Bob Strain, Sierra Vista: $817

Mayor Ed Honea, Marana: $1,209

Because the Mayor's Tahoe was taken away in October of last year, council members say, City Manager Jaime Fontes let the Mayor borrow a blue Ford Expedition. A vehicle that council members claim, was purchased by money from the federal government for police use.

Nogales Police confirm, in early December the Mayor was pulled over near the border in a blue Expedition at 3:30 in the morning. He wasn't cited, but council members say he was in the blue expedition that he shouldn't have been in, in the first place.

"What is he doing in that area at 3 in the morning? In a city vehicle?" asked Councilman Hanessian. "Was he drinking? Was he not? That's a very important issue. Is he getting the city into a certain amount of problems?" The Councilman also commented on the Mayor's purchases. "Just looking at that, it's a huge, huge waste of public money at the least. This is not a free ride. There are people who are put in jail for doing things like this."

Vice Mayor Garino said, "I can't believe it… you should not buy alcohol with city, taxpayer money. I think he should've paid for it out of his own pocket."

The city council voted to forward the Mayor's expenditures to the State Attorney General's Office for review, to determine if the Mayor misused public monies which is a class 4 felony. The AG's office has not yet released any information.

If it is proven that the Mayor acted in error, Vice Mayor Garino is asking that the Mayor reimburse the city for his purchases. Councilman Hanessian is asking that the Mayor resign.

If these charges are so unreasonable, why did the Mayor's spending go on unchecked for so long? Council members we spoke with say, they raised their concerns to the City Manager more than a  year ago, but he did nothing. They also say, it is the duty of the City Manager to flag the expenditures and stop it.

City Manager Jaime Fontes has dodged KGUN 9's phone calls, emails and multiple requests for interviews. He has accepted a new position as City Manager in Santa Paula, California. Mr. Fontes is said to remain on the Nogales City payroll as City Manager, until February 15^th, 2010.

Supporting documents for this story can be found in the "Also on KGUN9.com" box in the upper left hand corner of this story.

Tammy Vo
tvo@kgun9.com