Post by ferryfast admin on Apr 15, 2005 20:29:55 GMT -5
State plans fast-ferry audit
Comptroller to determine whether there was misuse of public funds
Rick Armon
Staff writer
Democrat & Chronicle-Rochester, NY
www.democratandchronicle.com/
(April 15, 2005) — Ever since Canadian American Transportation Systems abruptly shut down its taxpayer-supported ferry service last year, there has been rampant speculation about the misuse of public money.
Now, at the behest of two Rochester-area assemblymen, the state Comptroller's Office is stepping in to find out whether public funds were spent appropriately.
Assistant Comptroller Steven Hancox announced Thursday that the state agency would conduct an audit of the ferry project and work with the Attorney General's Office as auditors move forward.
Auditors also will determine whether "appropriate safeguards were in place to protect the public's interest in this project," according to Hancox.
The inquiry had been requested last month by Assemblyman Brian Kolb, R-Canandaigua, and Joseph Errigo, R-Conesus, Livingston County, who both welcomed the news. "We're anxious to have them get started," Kolb said.
CATS owners Dominick Delucia and Brian Prince couldn't be reached for comment. Delucia told the Democrat and Chronicle in an interview last November that he had no problem with the state investigating the project.
The state spent $14 million — $6.6 million in a loan and $7.4 million in grants — to help buy the $42.5 million Spirit of Ontario, a vessel built in Australia by Austal Ships. Rochester also provided a $1.3 million loan to help purchase the vessel.
The loan money was sent directly to the shipbuilder and wasn't given to CATS, officials have said.
Millions of dollars more in city, state and federal money was spent to build a ferry terminal at the Port of Rochester and to improve infrastructure in advance of the ship's arrival.
CATS launched the service to Toronto last June, but it lasted less than three months before the ferry shut down because of financial problems. Since then, many businesses that worked with CATS have complained that the Rochester-based company never paid its bills.
The city bought the ship at a federal foreclosure auction in February for $32 million and plans to resume service this spring.
The audit is expected to start within the next two weeks, but there's no way to know when it will be completed, said comptroller spokesman Dan Weiller. He added that the office conducts between 300 and 400 audits each year.
Both Kolb and Errigo said they're not sure what the audit will determine and aren't alleging any criminal wrongdoing.
"Hopefully everything is all above board," Errigo said. "We're not after tarnishing anybody's reputation, but we'll find out after the comptroller finishes his work."
Comptroller to determine whether there was misuse of public funds
Rick Armon
Staff writer
Democrat & Chronicle-Rochester, NY
www.democratandchronicle.com/
(April 15, 2005) — Ever since Canadian American Transportation Systems abruptly shut down its taxpayer-supported ferry service last year, there has been rampant speculation about the misuse of public money.
Now, at the behest of two Rochester-area assemblymen, the state Comptroller's Office is stepping in to find out whether public funds were spent appropriately.
Assistant Comptroller Steven Hancox announced Thursday that the state agency would conduct an audit of the ferry project and work with the Attorney General's Office as auditors move forward.
Auditors also will determine whether "appropriate safeguards were in place to protect the public's interest in this project," according to Hancox.
The inquiry had been requested last month by Assemblyman Brian Kolb, R-Canandaigua, and Joseph Errigo, R-Conesus, Livingston County, who both welcomed the news. "We're anxious to have them get started," Kolb said.
CATS owners Dominick Delucia and Brian Prince couldn't be reached for comment. Delucia told the Democrat and Chronicle in an interview last November that he had no problem with the state investigating the project.
The state spent $14 million — $6.6 million in a loan and $7.4 million in grants — to help buy the $42.5 million Spirit of Ontario, a vessel built in Australia by Austal Ships. Rochester also provided a $1.3 million loan to help purchase the vessel.
The loan money was sent directly to the shipbuilder and wasn't given to CATS, officials have said.
Millions of dollars more in city, state and federal money was spent to build a ferry terminal at the Port of Rochester and to improve infrastructure in advance of the ship's arrival.
CATS launched the service to Toronto last June, but it lasted less than three months before the ferry shut down because of financial problems. Since then, many businesses that worked with CATS have complained that the Rochester-based company never paid its bills.
The city bought the ship at a federal foreclosure auction in February for $32 million and plans to resume service this spring.
The audit is expected to start within the next two weeks, but there's no way to know when it will be completed, said comptroller spokesman Dan Weiller. He added that the office conducts between 300 and 400 audits each year.
Both Kolb and Errigo said they're not sure what the audit will determine and aren't alleging any criminal wrongdoing.
"Hopefully everything is all above board," Errigo said. "We're not after tarnishing anybody's reputation, but we'll find out after the comptroller finishes his work."