In response to a messy scandal over misuse of port funds that has claimed the jobs of two top officials, the Port of Oakland has announced a number of steps designed to usher in a new era of transparency and accountability as the new year gets underway.
By Patrick Burnson
Published: January, 2013
In response to a messy scandal over misuse of port funds that has claimed the jobs of two top officials, the Port of Oakland has announced a number of steps designed to usher in a new era of transparency and accountability as the new year gets underway.
Specifically, the port is:
• releasing the port purchasing card audit completed in July 2012 as originally presented to the Board;
• releasing the investigative report conducted by independent outside counsel, Arnold & Porter, which looked at specific improper expenditures and the port’s overall expense policies;
• revising its policy on redacting expenses, and will now respond to all requests for records with fully unredacted expenses unless there is a specific and compelling legal reason to redact information (i.e., social security numbers, personnel/human resources issues, sensitive competitive information, etc.); and
• moving forward on a comprehensive plan to prevent improper expenditures going forward, and strengthen the port’s culture of compliance.
In addition, the port announced that James Kwon retired as maritime director effective December 28. The port has also received repayment of the public funds spent on the two identified improper expenditures.
"It’s a new day at the port, and we are pleased to be releasing comprehensive information on the problems we’ve faced and how we’re addressing them," acknowledged Board President Gilda Gonzales. "While the vast majority of what was uncovered was an organization of people doing their jobs ethically and responsibly, we also found outdated policies, a few irresponsible actions, and a few isolated cases of improper expenditures."
"I am very pleased that the board has helped us turn a page toward transparency and accountability, which were goals when I was appointed," said Acting Executive Director Deborah Ale Flint. "The plan we released in December will continue moving us forward."
The port has issued new rules that will specify permissible levels of air travel depending on the length of the flight. New rules will also establish permissible spending levels for hotels and meals that conform with best industry practices. The number of persons holding Port P-Cards will be reduced. In addition, the port will step up enforcement of the existing P-Card policy, holding both card holders and approving officials fully accountable.
Mixed Results for CA Exports
Weakening economic conditions in several key foreign markets and outright recessions in others led to mixed results for California exporters during November, according to an analysis by Beacon Economics of foreign trade data released by the U.S. Commerce Department.
The value of goods shipped abroad by California businesses in November/December totaled $13.87 billion, a nominal increase of just 0.4 percent over the $13.81 billion recorded in the same month last year. Adjusting for inflation would translate that apparent gain into a real decline of 2.4 percent.
However, on a decidedly more positive note for California’s economy, exports of manufactured and non-manufactured goods were up in real as well as nominal terms, while re-exports of previously imported goods were down substantially.
"Despite adverse economic circumstances in much of the world, November saw real growth in exports of goods produced here in California," said Beacon Economics International Trade Adviser Jock O’Connell.
Beacon Economics also said that although overall manufacturing employment was down 0.8 percent in the state in November, the figure masks the manufacturing uptick being experienced across California. San Jose, Sacramento, Santa Rosa, Modesto, and Stockton all added more than 1,000 new manufacturing jobs over last October, showing that the industry is growing in key parts of the state.
California’s exports of manufactured goods totaled $8.93 billion, a nominal 4.2 percent gain over the $8.57 billion recorded last October. Non-manufactured exports (chiefly agricultural products and raw materials) rose by a nominal 7 percent from $1.85 billion to $1.98 billion. Meanwhile, re-exports fell by a nominal 12.7 percent from $3.39 billion to $2.96 billion.
"Even discounting for inflation, exporters of products of California-origin came out ahead in November," O’Connell said. "Losses came only in the category of those previously imported goods which California businesses profitably re-sell to foreigners."
