State legislators must force change at the transportation
agency. This state cannot afford to waste money.
Bottom line: Money is wasted at the state Department of
Transportation. This state agency -- with more than $1 billion in
annual expenditures and 5,000 employees -- certainly doesn't abuse
every dollar that it has, nor even most of its money.
But enough money is wasted that state residents have a reason to
question if they're getting their money's worth from this powerful
state agency that largely answers to no one. South Carolina has
critical needs when it comes to state highways, and it's easy to
argue the state highway agency needs more money.
The Legislative Audit Council report released Tuesday leaves
little question that some of the money entrusted to DOT could be
spent more wisely. Tuesday's long-awaited audit came after a
year-long performance review. It should awaken state legislators to
the need not only to change the way DOT does business, but more
important, to change how it does business.
That means the Legislature will have to give DOT a real boss,
meaning the governor of this state. Almost every other state does
that, and so should South Carolina. As it now stands, DOT answers to
powerful legislators who heavily influence the appointment of the
six commissioners who come from each congressional district. The
governor has one appointee, the commission's chairman. Gov. Mark
Sanford's appointee, Tee Hooper of Greenville, gets a large share of
the credit for highlighting the problems that led legislators to
call for this LAC performance audit.
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The almost 100-page audit makes many points, some of them
favorable of how DOT does business.
Many of the findings are devastating, such as: DOT wastes money
in the way it hires and pays private consultants. For example, by
making fixed payments prior to work being completed, DOT paid
private contractors about $8.7 million for work that had been
eliminated from contracts. Also, the projects managed by private
consultants were about 7 percent more over budget than those managed
by DOT employees. And DOT paid some contractors more in management
fees than probably was necessary, resulting in a loss of about $32
million.
More problems were uncovered, including: There was evidence DOT
attempted to lower its cash balances during the legislative session
by delaying billings for reimbursements from the Federal Highway
Administration, a practice that may have cost $1.5 million in lost
interest during two recent fiscal years. And DOT's "audit program
for preconstruction contracts is inadequate, ineffective and not in
compliance with federal law."
To this, a defensive DOT attacked the audit for negative findings
that are "overstated," "misleading" and "based on incomplete
information."
Gov. Sanford sees through this smoke. So should DOT commissioners
and state legislators. It's time to clean up DOT and make sure it
spends each dollar as efficiently as possible. To make sure the
reforms will last, this huge state agency must be made more
accountable to the governor of South Carolina.
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