Following the transfer of nearly $200 million into the Diamond State Port Corporation (DSPC) under Bethany Hall-Long’s two-week tenure as governor, the auditor’s office announces a performance audit will ensue.
The audtior's flagging of the large transfer comes while the Delaware General Assembly and Gov. Matt Meyer await an opinion from the Delaware Supreme Court on the status of nominations made by former Gov. Bethany Hall-Long to the DSPC Board of Directors.
While $195 million had already been earmarked for the DSPC by former Gov. John Carney’s administration to build the new Edgemoor Port Container Terminal, the money had been held in an interest-bearing state special fund since June 2024.
Following the signing of a Joint Development Agreement between DSPC and private port operator Enstructure in December, the earmarked funds, plus close to $5 million in interest, was transferred to the DSPC on Jan. 16 of this year.
While the auditor’s office is mandated to conduct a financial audit of the port annually, State Auditor Lydia York explains it was the large sum of money made in a single transfer that prompted her to announce this broader performance audit.
“I think it's important that when an entity doubles its size, that we just pay attention to what it is they're doing and assure ourselves at the state level that they're being good stewards of the state's fisc," she said.
At the auditor’s office's budget hearing in front of the Joint Finance Committee Tuesday, York assured state legislators the performance audit was not a request made by Gov. Matt Meyer’s administration or any other entity.
York stresses the decision was made independently, noting it is unusual for the state to see that type of money moving "all at once and all at the same time."
“Other than a road, this is a significant investment of capital, and I think it is both something new for the state and something that we just ought to be cautious but assertive about what's going on," York said.
In response to the news, Meyer’s Deputy Chief of Staff Nick Merlino said in a statement: "We need to invest in the growth of our port responsibly, transparently and enthusiastically. We expect to do all three. But moving $200 million in taxpayer money in the closing days of the last administration and hoping we wouldn’t notice seems to fail transparency and fall short of accountability."
The Edgemoor project is expected to cost a grand total of $635 million, but combined with the existing Port of Wilmington, the two are expected to generate 11,500 jobs and $76.2 million in tax revenues for the state.
The project is currently on pause due to legal permitting challenges, but some state officials feel confident those setbacks will be resolved.
York says usually audit work beings in August following the close of the fiscal year, but she explains since this a performance audit — and depending on what information the DSPC discloses to the auditor's office to start with — preliminary efforts into the probe could begin sooner rather than later.
