Port Commission Directs Internal Audit of Firms Named in Recent Report

Motion also directs staff to implement all recommendations by McKay

At the Port of Seattle Commission meeting today, former U.S. Attorney Mike McKay presented the findings of a 10-month investigation into potential fraud. The Port Commission unanimously approved a motion endorsing all of Mr. McKay’s recommendations, and directing Port CEO Tay Yoshitani to begin implementing them immediately. Bi-weekly progress reports will be presented to the Commission in public session.

“McKay’s report is the shock to the system that the Port’s culture needed,” said Commission President John Creighton. “It builds on the reforms we’ve already enacted and will help us drill into areas that need further change.”

Creighton went on to note the Port’s intention to follow up on McKay’s finding that some contractor behavior – namely that some received excessive profits for work done for the Port - warranted further action. “We’re going to try to recover every penny possible,” Creighton said.

“The contract loopholes that let some uncooperative contractors slide through the investigation are not acceptable,” said Commission Vice President Lloyd Hara. “We are a public agency, and we expect those who do work for us to cooperate fully with Port requests to see their books.”

The Port Commission directed the internal auditor to prepare a 2009 Work Plan to audit all currently active contracts and leases involving the firms named in the Investigative Report and did not cooperate or only cooperated partially with the investigation, and report to the Audit Committee with findings regarding their performance and compliance with all laws and policies.

Find a full copy of Mr. McKay’s report here.