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Port of Seattle audit could prompt criminal investigation

06:57 PM PST on Friday, December 21, 2007

By GLENN FARLEY / KING 5 News

Audit leads to more investigations

SEATTLE - A scathing audit of construction practices at the Port of Seattle may lead to a criminal investigation.

A nearly 350-page audit released this week looks at construction projects at the Port of Seattle. Most of the major ones are at Sea-Tac airport, including the multi-billion-dollar third runway.

The audit finds more than $100 million was mishandled. While the audit primarily looks at ways to make the port's construction practices work better, the auditors cite specific cases where they are possible violations of state law.

The include altered invoices, contracts that were allowed to grow without competing bids and altered audit evidence – an allegation the Port disagrees with, saying all they did was compile the papers the auditor wanted in binders.

According to spokeswoman for the state Attorney General, because this is a performance audit, they would have no enforcement role - that would be up to the Port Commission to carry out changes.

But the federal government is a different story. A spokeswoman for the U.S. Attorney's Office says the audit could be a starting point for investigations by several federal agencies.

"The office of the Inspector General with the federal Department of transportation contacted us this morning, they want a briefing and follow up on the audit," said Brian Sonntag, state auditor. "We're going to meet with them in January."

But the auditor also found no cases of fraud.

Yesterday, the port's CEO and two of its commissioners said they would implement many of the recommendations made in the audit, but there are no plans to fire or discipline anyone based on evidence found so far.

An FBI spokeswoman would neither confirm nor deny that the federal law enforcement agency was looking into the allegations.   

But the auditor's department says the FBI was sent a copy of the report.

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