ILLEGAL DRUGS, KINKY ACCOUNTING SMUDGE CAMPAIGN

John Sanchez, the Republican nominee for governor, has come under scrutiny
for statements he has made about whether he ever used drugs.

The point here isn't whether Sanchez ever experimented with marijuana, but
rather if he has been consistent in his answers when asked about any drug
use, past or present. From here on, pay particular attention to the word
"adult."

A recent story by Barry Massey of The Associated Press noted that Sanchez
said on a KKOB-AM talk show in May that he had not used illegal drugs.
Sanchez, along with Lt. Gov. Walter Bradley and Rep. Rob Burpo,
R-Albuquerque, were asked in the radio interview, "Have you guys done drugs?"

Burpo and Bradley, who were running against Sanchez in the June 4 GOP
primary election, answered first, saying they had never used illegal drugs.

Sanchez said: "You know, you're asked a lot of these questions as you're on
the campaign trail. And I've always said adamantly, I haven't done drugs
and I don't do them now."

Massey noted that Sanchez's answer about drugs in May differed from his
response in a recent Albuquerque Tribune candidate guide in which Sanchez
said he had "experimented" with marijuana when he was younger, but hadn't
used illegal drugs as an adult.

Sanchez's answer in the radio interview also differed from what he told me
when I asked him about drugs this year and two years ago.

Here's what Sanchez told me in April when I asked if he had ever done
drugs: "No, in my adult life, I haven't. I've been a pretty good guy. I'm
clean. I enjoy a glass of wine every so often. A good beer every so often
over at El Pinto is great. But I don't use drugs, no."

Here's what Sanchez said in July 2000 when he successfully ran against
House Speaker Raymond Sanchez, D-Albuquerque, in House District 15: "Well,
as a teenager, very early on, I experienced just a little marijuana, once,
as a young, young teenager, but that was it. Summer between eighth and
ninth grade, but in my adult life, no."

Jay McCleskey, Sanchez's campaign manager, said Sanchez has been consistent
in saying he has never used drugs as an adult and that Sanchez misspoke if
he didn't qualify his statement in the radio interview in May.

McCleskey contends it's Bill Richardson, the Democratic gubernatorial
nominee, who has been inconsistent regarding his role at Peregrine Systems
Inc., a California software company.

Peregrine, which filed for Chapter 11 bankruptcy protection last month, is
under investigation for improper accounting practices by the U.S.
Securities and Exchange Commission and the U.S. Justice Department.
Richardson resigned from Peregrine's board of directors on June 5, the day
after the New Mexico primary election, after serving about 15 months.

The Sanchez camp has attacked Richardson for saying in July that he was
"unaware of any accounting irregularities until I read about them in the
press."

McCleskey said that statement is inconsistent with Richardson's claim in a
recent Richardson television commercial that he "helped uncover the scandal
(at Peregrine)."

"Bill did learn about those (accounting) irregularities when he read about
them in the press," countered David Contarino, Richardson's campaign manager.

Richardson told me he helped to uncover Peregrine's problems because he
voted, with other board members, to fire Arthur Andersen as the company's
auditor in early April: "I not only voted to fire Arthur Andersen, I sent a
letter immediately after I learned of the possible transgressions (asking)
that we fully investigate this and that we take several steps."

Richardson was referring to a May 10 letter he sent Peregrine's new board
chairman John Moores, which asked for an independent investigation of
Peregrine's accounting problems after they were disclosed May 6.

The Sanchez campaign has slammed Richardson because Moores contributed
$5,000 to Richardson's campaign in April. Lawsuits filed against Moores in
June charged that he and his investment firms manipulated the price of
Peregrine stock, making $611 million over several years.

A new Sanchez ad calls Richardson "an insider who got paid, while honest
people got hurt" at Peregrine.

"John Moores owns the San Diego Padres and I've maybe had three meetings in
my life with him," Richardson said. "I consider him a friend but these are
outrageous charges."

Sanchez also has criticized Richardson because Stephen Gardner, who
resigned May 6 as Peregrine's chief executive officer, received more than
$16 million in compensation for 1999-2001. Gardner is Richardson's
brother-in-law.

Richardson said he had a very marginal role in Peregrine's day-to-day
operations: "I made no policy decisions. I'm not a software expert."
Richardson said he owned no Peregrine stock, exercised no stock options and
was paid $10,000 for serving as a board member.