RALEIGH —The State Ports Authority incorrectly paid the expenses for Chief Executive Officer Erik Stromberg to travel to the 2003 Gator Bowl in Jacksonville, Fla., over the New Year’s holiday, State Auditor Ralph Campbell said in an investigative audit released Wednesday.
Auditors also questioned Stromberg’s use of a state car while he was being paid $500 per month as a car allowance to use his private vehicle, and personal purchases made by Ports Authority employees using Authority credit cards. The investigative audit was triggered by calls to the State Auditor’s Hotline.
The CEO told auditors that he made the Gator Bowl trip at the invitation of a railroad corporation official, and that he believed it would give him the chance to meet with shippers who might use North Carolina’s ports. The railroad corporation provided the Gator Bowl tickets, but Stromberg and his two sons made the trip to Florida in a state car and charged their hotel room and other expenses to the Authority’s credit card.
Stromberg admitted the trip was “primarily pleasure” and a “freebie.” In the wake of the audit, Authority officials said in their response, the CEO has repaid the expenses associated with the trip, which Authority officials had previously approved.
Auditors said Stromberg should not be using a state vehicle while collecting a $500 allowance for the use of his private car. Both Stromberg and Authority officials said the car allowance was considered part of the CEO’s salary, and had been included on tax statements. It will now be consolidated with his salary, Authority officials said.
In addition, Authority officials said use of its credit cards for personal purchases was forbidden under verbal rules, but would be put into a formal, written policy.