Hawaii’s Office of the Auditor has released a report examining procurement at the state Department of Transportation, and it’s not flattering.

“Especially troubling was the pattern of recurring violations and questionable practices we found in the Airports Division (Airports), which in fiscal years 2009 and 2010 accounted for approximately 30 percent of the department’s total procurements of $417 million and $467 million in goods and services, respectively,” the authors write.

According to audit, “Airports not only outsourced its management functions, it also removed itself from parts of the decisionmaking process, surrendering key oversight and management responsibilities. This disengagement resulted in questionable allowances to the program manager, such as the provision of rent-free facilities and the reimbursement of $570,000 in office renovation expenses and $21,000 for ‘team-building’ training. …”

And more: “Airports is also unwilling or unable to properly administer and manage contracts that it oversees directly. Again, we found a persistent overreliance on and accommodation of contractors, which often resulted in cost over-runs, time delays, and procurement violations. …”

The Office of the Auditor said that DOT “did not disagree with nor dispute any of our findings” and that “a new administration has assumed a stronger leadership role and continues to emphasize the importance of compliance with procurement laws and rules.”

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Photo courtesy Simon_sees.

—Chad Blair

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