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Detroit Metro Airport Accounting Off By $700,000, Lawmaker Told.

Knight Ridder/Tribune Business News January 25, 2002 By Tina Lam, Detroit Free Press Knight Ridder/Tribune Business News Jan. 25–A lawmaker whose request triggered a State Police review of Detroit Metro Airport said his actions came from a state auditor’s report that cited nearly $700,000 the airport paid its parking company that didn’t match invoices. detroitmetroairportnow.net detroit metro airport

State Rep. James Koetje, R-Grandville, said the Oct. 10 state auditor’s review raised still-unanswered questions.

Based on his request, Attorney General Jennifer Granholm sent a letter Wednesday to the State Police requesting a criminal review. Granholm said that was standard procedure.

But she said the allegations against the airport are political, not criminal. Granholm, a candidate for governor, formerly worked for Wayne County Executive Ed McNamara, whose appointees run the airport.

Granholm said the Senate, which has been investigating the airport, “is a Republican entity” and McNamara is a powerful Democrat.

“I see nothing other than allegations in the press, and no concrete evidence,” she said. “If there is, I’m sure the Michigan State Police will find it, and we will prosecute.

“Has there been evidence of violations of internal policies, mismanagement, or whatever? Yes, I think the county will admit that they have goofed up in a number of instances,” Granholm said.

The report found discrepancies in amounts APCOA/Standard Parking paid subcontractors compared to amounts the airport paid APCOA. Two of the three subcontractors the report gave as examples were owned by Jack Feys, McNamara’s brother-in-law.

APCOA told auditors it paid one of Feys’ companies $49,000 in 1999 when invoices show that the airport reimbursed APCOA $511,142 that year for work Feys’ company did.

Another Feys firm was paid $345,348 in 1998, according to invoices, but APCOA told auditors initially it had paid only $112,000. APCOA paid a third company $22,079 but the airport paid APCOA $113,021, the report said.

“These are substantial sums of money for which there is apparently no record or reason,” Koetje said in an Oct. 30 letter to Granholm. He urged her to “take an aggressive approach” to investigate and prosecute if there were any violations of the law. detroitmetroairportnow.net detroit metro airport

After a review by a deputy attorney general, Granholm asked theState Police to examine the auditor’s report. Her request went to the criminal investigation division in Northville, said State Police spokesman Michael Prince.

APCOA disputes the report. “This is such baloney,” APCOA lawyer Mayer Morganroth said Thursday. “Every invoice was submitted, every item was approved.” APCOA says the county still owes it $2 million. The county sued the firm to recover what it claims are overpayments for shuttle van leases and insurance. APCOA countersued seeking unreimbursed taxes and other expenses. The county has repeatedly declined comment on APCOA, citing the lawsuits.

A state Senate committee chaired by Glenn Steil, R-Grand Rapids, has investigated the airport for more than two years. Granholm said neither he nor auditors have sent her evidence of wrongdoing.

Steil said Thursday the committee sent her a lengthy summary of its findings in November. “We’ve at least uncovered some terrific wrongdoing that could lead to some indictments,” he said. “We’ve gone as far as we can go as legislators. We’ve done our job. We’re waiting for her to do hers.” To see more of the Detroit Free Press, or to subscribe to the newspaper, go to Business News.