John Rothie, manager of the port's $125 million third-runway construction project at Sea-Tac International Airport, and Larry McFadden, the general manager of Port Construction Services, resigned in response to the investigation's finding according to the Seattle Post-Intelligencer.
Rothie, in an internal port e-mail written Friday and obtained by the paper, said that rather than 'contest the accusations I have decided that it is in the best interest of my family and myself to resign from the port effective today.'
At the port's weekly board meeting today, Port of Seattle chief executive officer Tay Yoshitani is expected to offer his position on the findings of the $1.4 million investigation conducted by former U.S. Attorney Mike McKay.
The five-member governing board of the port requested the investigation in response to last year's state performance audit of the port's contracting procedures, that found in 2003 to 2007 the port essentially wasted up to $100 million in taxpayer money. The state report also found 50 indication of fraud in the port's contracting.
McKay's investigation, which released it findings Thursday, corroborated 10 instances of fraud found by the state audit. Last week, McKay said that while he did not have subpoena power often required to prove embezzlement in such instances, his investigation did identify 10 port employees directly involved in the corroborated incidents of fraud.
According to the Seattle P-I, Yoshitani was prepared to stand by his earlier promise to fire anyone directly involved in fraud.
While most of the port commissioners have long supported terminating staff members potentially identified in the McKay report, port commission Gael Tarleton told the newspaper that legal considerations had to be taken into account.
'I don’t want wrongful-termination suits filling the port commission’s agenda,' Tarleton told the paper.
Commission President John Creighton was more to the point, telling the paper he opposes allowing those identified in the report to resign.
'To me, this is beyond the pale: Fraud was identified in the report, and if we are truly going to have zero tolerance at the port, I would support outright termination. The individuals in questions should be kicked to the curb with no ifs, ands or buts about it,' Creighton said.
Despite the depth of the investigation, McKay could not determine if any of those found participating in fraudulent activities personally benefited from their actions.
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