Feds To Audit LAX Spending
ALLEGATIONS: Probe will target possible use of funds diverted for uses outside the airport.
An audit will be launched in early July to investigate allegations of revenue diversion at Los Angeles International Airport, the U.S. Department of Transportation's Inspector General's Office announced Friday.
Spending LAX-generated funds for uses outside the airport could be grounds for action by the Federal Aviation Administration.
Several members of Congress requested the review, according to a memo issued by Jeffery Guzzeit, the DOT's assistant inspector general for aviation and special program audits.
In a written statement, LAX officials said they take the allegations "very seriously" and will "cooperate fully" with the audit.
"We anticipate the audit will indicate Los Angeles World Airports is following all FAA regulations and federal statutes that require airport revenue be spent for the operating and capital costs of LAX," said airport spokeswoman Mary Grady.
Still pending is an FAA inquiry launched in December to determine whether the Los Angeles Police Department overcharged for security services at LAX, the nation's third- busiest airport.
That probe started shortly after the head of the Los Angeles Airport Peace Officers Association filed a complaint alleging that the LAPD used the money to pay for expenses unrelated to LAX.
In 2009, the FAA found that $14million worth of airport funds were used to improperly market the entire city of Los Angeles by LA Inc., the city's convention and visitors bureau.
A short time later, the Los Angeles City Council agreed to reimburse $18.1million to LAX, which includes interest expected to accrue over a decade.
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