Probe: Port Authority Paid Too Much For Insurance
An internal investigation has found the Port Authority of New York and New Jersey paid millions of dollars in excessive insurance premiums for construction projects.
Chief investigator Michael Nestor tells the Star-Ledger the agency is looking at it as "gross mismanagement" and the agency is negotiating with insurers to get money back.
Nestor says the investigation is largely based on information provided by a former analyst who was fired in 2012 for excessive absenteeism hours he alleged three executives had accepted gifts and mismanaged the insurance program. The analyst had concluded the agency had paid $58 million in excessive premiums between 2007 and 2011.
The analysis found officials had arranged coverage for estimated contract values totaling $5.2 billion, even though actual values totaled $2.23 billion.
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