Port of Oakland Acting Executive
Director Deborah Ale Flint has issued a written statement responding to recent
allegations of misuse of port funds.
In an Oct. 25 letter, Ale Flint
addressed accusations that maritime director James Kwon, a top aide to
Executive Director Omar Benjamin, spent thousands of dollars in public money at
a Texas strip club.
“The last week has been
particularly challenging for our organization, our leadership, and our
employees,” she wrote. “I am as disappointed as you are at the allegations of
improper expenditures.”
Kwon is alleged to have spent
$4,500 entertaining shipping executives at strip club in Houston, Texas called
Treasures in 2008 during a business conference. Top port officials are also
alleged to have spent more than $500 in public money last year at a private
karaoke bar that local media reports say is a haven for prostitution.
Ale Flint said the issues are
being thoroughly investigated and that the port intends to get to the bottom of
the situation in order to ensure all that the organization is “operating in a
safe, secure, legal, and ethical way.”
Thus far, no evidence of any kind
of criminal activity has been found, she said.
Since the scandal broke earlier
this month, the Oakland Board of Port Commissioners has placed Benjamin on paid
administrative leave, and Kwon was put on leave by Ale Flint. Also, international
law firm Arnold & Porter has been retained to serve as independent outside
counsel in the on-going investigation.
“We will be as transparent as the
law allows, releasing whatever information we uncover that we legally can,” Ale
Flint said in the statement. “It is unfortunate that such circumstances led to
this introspection, but we will come out of this a better and stronger
organization for it.”
