COLUMBIA - Two state Department of Transportation employees told a Senate subcommittee the agency's leaders ordered cash balances hidden from lawmakers, an accusation top department officials have denied.

Comptroller Angela Feaster and deputy state highway engineer John Walsh told a Senate Transportation subcommittee on Tuesday that they were in a December 2003 meeting where plans were made to delay payments from the federal government totaling $78 million and to defer billing on more than $100 million on other projects.

A Legislative Audit Council report released last month said its auditors found evidence to support allegations that the agency purposely kept its cash balances low during the legislative session.

The pair said the orders came from officials worried that lawmakers might do what legislators in other states had done and take surplus highway money, The Greenville News reported in Wednesday's edition.

DOT Director Elizabeth Mabry previously said her agency hadn't manipulated cash balances or tried to hide money.

Ms. Feaster said officials first asked her to suspend billings to the federal government to keep cash balances low, but she said the agency's automated accounting system wouldn't allow it, the newspaper reported. A decision was made to delay payment of four bills totaling $78 million for more than a month, she said, while other projects were coded in such a way to defer their billings.

From the Thursday, December 14, 2006 edition of the Augusta Chronicle