Legal bill for Seattle port audit case grows

The Port of Seattle has racked up a $257,000 legal bill in preparation for a U.S. Justice Department investigation into more than 50 counts of alleged fraud, waste and abuse in port contracting that were detailed in a Washington state audit of the port last year.

The bill, which is mostly for research, interviews and preparatory court work, covers services provided to the port by two Seattle law firms, Danielson Harrigan Leyh and Tollefson and Yarmuth Wilsdon Calfo.

The money will come from the port's annual legal budget, which is currently $2.9 million.

The two firms began billing the port on Jan. 7, the same day that the Justice Department announced it was beginning the probe.

The federal investigation was prompted by a 200-plus-page state audit that found the port had wasted nearly $100 million in taxpayer funds on construction contracts between 2004 and 2007. Most of what the report describes as unnecessary costs?was connected to two contracts related to the construction of a third runway at Seattle-Tacoma International Airport, which is managed by the port authority.

In addition to the violations of state law, Washington state auditor Brian Sonntag also found that port officials did not follow proper contract bidding procedures and in some cases allowed vendors to make decisions reserved for port officials. The audit claimed that some port staff members impeded audit investigators and refused to certify the accuracy of the information that was provided. Sonntag said in some cases records were altered before being turned over to his investigators.

Not included in the billings are the services of private attorney Jon Zulauf, which the port has retained to represent port staff members contacted by federal investigators. 

Source: American Shipper