NY Toll Authority Out of Control
What public entity would feel free to transfer valuable naming rights to a retiring executive and pay royalties for 27 years? Answer: The Port Authority of New York and New Jersey, owner of the world’s busiest bridges and tunnels and the iconic World Trade Center complex.
In an unbelievable story, the Bergen Record reported that in 1986 the Authority sold the naming rights to the World Trade Center to a foundation set up by one of its retiring executives for $10. A stunning example of a conflict of interest gone wild, the executive went on to rake in millions of dollars in profits as a result of the golden parachute transfer. Incredibly, Authority officials still insist that they don’t need any oversight.
After the story came to light the Authority’s Executive Director had the sense to call the sale a “shameful episode” and the Governor called for an investigation by the Attorney General, but the real issue is how this shocking deal survived for nearly three decades.
Meanwhile, the Authority continues to turn its back on public accountability. A recent report by the non-partisan Government Accountability Office (GAO) criticized the Authority’s lack of transparency or oversight when subjecting the public to toll increases.
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http://www.nxtbook.com/nxtbooks/aaa_ny/ct_201311/index.php#/8
http://www.northjersey.com/news/Christie_administration_condemns_1986_Port_Authority_deal_to_sell_rights_to_World_Trade_Center_name_for_10.html
