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(Spencer Platt/Getty Images)
NEW YORK—State Comptroller Thomas DiNapoli announced that his office is going to probe the Metropolitan Transportation Authority (MTA), saying that the agency may have engaged in fraudulent activities while doling out $600 million in overtime each year.
DiNapoli, a Democrat trying to get re-elected in November, said that MTA workers used up “excessive overtime,” which he said could point to fraud.
"For instance, we had a situation where someone, in effect, seemed to give themselves the overtime, without real prior approval or review,” he told NY1. “That begged the question about whether or not there was something fraudulent going on.”
His office normally writes audits for the MTA every so often that examine cost savings. He rarely does a forensic audit on any agency, which looks for evidence of criminal activity—especially fraud.
Given the circumstances, DiNapoli will be doing a forensic audit on the MTA this time.
Facing a $900 million deficit, the MTA recently cut services and now plans to raise tolls and fares throughout New York City and outlying areas.
Over four years, the agency’s overtime increased around 26 percent to the current rate.
"It's hard to justify repeated fare hikes, layoffs, and service reductions when New Yorkers believe the MTA isn't controlling spending and restraining costs,” DiNapoli noted in a statement.
He said that more than 140 MTA employees were paid double in their overtime than their overall salary, according to a nonforensic audit that was released on Aug. 5.
For example, a Long Island Railroad maintenance worker took home more than $140,000 in overtime pay with his annual salary at around $64,000. Another maintenance worker with LIRR accrued $145,000 in overtime with a base salary of around $82,000.
His office said they are going to audit the way the MTA handles the assigned shifts of employees and will see if the employees are actually working on those shifts. The audit may take several months to complete.
The MTA stated that the audit is needed, adding that the agency “welcomes" a fiscal overhaul of their entire agency.
"The MTA is focused on overhauling how we do business to ensure that every dollar counts by cutting administrative costs, consolidating functions, and renegotiating contracts," MTA spokesman Aaron Donovan said in a statement, according to Reuters.
In previous statements, the MTA said they are trying to reduce overtime costs by $22 million this year and by around $60 million in the next year.
