Oakland Takes 'Comprehensive and Decisive Action' on Port Staff Spending

The Port of Oakland continued taking what it called "comprehensive and decisive action that demonstrates a new era of transparency and accountability at the Port," it said Dec. 10. The actions, which follow an investigation by the port's outside counsel into expense reimbursement practices and policies that led to executive resignations, include:

• releasing the Port Purchasing Card Audit dated July 2012.
• releasing the investigative report by independent outside counsel, Arnold & Porter, which looked at specific improper expenditures and the Port's overall expense policies.
• revising 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.
• moving toward a comprehensive plan to prevent improper expenditures, and strengthen the Port''s culture of compliance.

The port also announced that James Kwon has agreed to retire as Maritime Director, effective Dec. 28. It also said it has received repayment of the public funds spent on the two identified improper expenditures.

Board President Gilda Gonzales said "the vast majority" of port activities was "people doing their jobs ethically and responsibly," but the investigation also found "out-dated policies, a few irresponsible actions, and a few isolated cases of improper expenditures." The board said guidelines for spending on flights, hotels and meals have been insufficient, so rules now specify permissible levels of air travel depending on the length of the flight. They also establish permissible spending levels for hotels and meals that conform with best industry practices.