Auditors question Port's commitment to correct problems

OLYMPIA — The auditors who delivered a devastating report on the Port of Seattle told state legislators today they were skeptical of the Port's willingness to correct pervasive problems in its construction management.

Auditors said they were encouraged by several proposed changes Port officials unveiled Tuesday. But they noted in testimony to the Joint Legislative Audit and Review Committee in Olympia today that the Port still disagrees with a majority of the audit's 23 findings and agrees with fewer than half of the audit's 51 recommendations. That, auditors said, differs from what Port officials are saying publicly about their appreciation for the 334-page performance audit.

In written testimony, auditors David Cotton and Patti Jones, who were hired by state Auditor Brian Sonntag, provided several examples they said were cause for concern.

Port CEO Tay Yoshitani has stated his intention to hire an outside firm to investigate for fraud at the Port. But, Cotton and Jones said, the Port has known about key findings of the audit since last September and hasn't yet hired investigators. The audit was released to the public Dec. 20.

If the Port had zero tolerance for fraud, as Yoshitani has said, it would immediately have investigated some matters, the two auditors said.

Cotton and Jones also said Port officials have repeatedly disputed the audit's estimate that the Port has wasted $97 million in public money, instead of focusing on underlying problems that caused the purported waste.

"Debating the precision of our estimates only serves to divert attention from future savings that can, should, and will be realized if the Port actually implements our recommendations," they wrote.

Nearly 100 people attended today's legislative hearing on the state's audit. About 200 were at a similar hearing Tuesday at the Port's headquarters in Seattle. The U.S. Justice Department announced Monday it was launching a criminal investigation of possible fraud at the Port.

Several citizens today echoed the auditors' concerns, including Chris Gower, a former King County resident and opponent of the Seattle-Tacoma International Airport's third runway, a project that came under scrutiny in the audit. "As a taxpayer, I don't trust an organization under federal criminal investigation to reform itself," Gower testified.

Yoshitani assured legislators that he would "work tirelessly" to ferret out any instances of criminal behavior at the Port and "any wrongdoing will be exposed and dealt with."

Several business people testified in support of the Port.

Jim Warjone, chairman of the Port Blakely Companies, which export products through the Port, said Yoshitani and the Port Commission should be given a chance to show they can carry out reforms. "Everything I have heard from the commission and management confirms they take this audit very seriously, and they will make the hard and difficult decisions to improve."

In an interview earlier today, Sonntag said he believes Yoshitani is a "stand-up guy" and sincere about changing the Port's culture.

But he said Yoshitani, who did not head the Port in the period covered by the audit, is in a difficult position.

"I think he's caught in a position where on one hand he wants to be very responsive," Sonntag said. "On the other hand he's got staff who have been there a long time and he continues to work with them. He doesn't want to be trashing them, and he doesn't want to be trashing the audit. As a result, he winds up doing a little bit of both."

Bob Young: 206-464-2174 or byoung@seattletimes.com