Local Politics

Auditor defends move not to release Easley audit

Posted August 20, 2009

— North Carolina's state auditor said she spent the morning before a federal grand jury defending her decision not to publicly release an audit into former first lady Mary Easley's job at North Carolina State University.

Beth Wood told reporters camped outside the federal courthouse in Raleigh Thursday that she did not face any political pressure to keep the audit private but that she wanted to continue working on the report to ensure that it was solid.

State auditor testifies to Easley grand jury State auditor testifies to Easley grand jury

Wood, a Democrat, said Mary Easley's attorney, Senate Majority Leader Tony Rand, would have disputed the initial findings.

"If he was doing his job and doing it well, he would try to punch holes in the audit I was putting out," Wood said. "If people start to punch holes in my audits, then I have no credibility in my audits."

Wood said Rand never contacted her about the inquiry.

"There has been a lot of misinformation that I held it for political reasons," she said. "So today, I went in and explained that I was getting no political pressure, that I held it just like I look at all the audits that come across my desk."

Wood is the latest in a number of former and current state officials subpoenaed by a federal grand jury investigating former Gov. Mike Easley's dealings with friends and contributors while he was in office.

Investigators have been examining his travel, vehicles provided to the Easley family, the purchase of a waterfront lot at a below-market price and N.C. State's hiring of his wife.

Wood was subpoenaed to answer questions about her relationship with the Easleys, some former Easley staff members and to provide information about any "business ventures" or financial ties she had with anyone mentioned in the federal probe.

A spokeswoman for Wood said she had no such ties.

Wood inherited the N.C. State audit from former State Auditor Les Merritt, but she refused to release it, saying that she found it to be partisan and lacking credibility.

"It did bring up issues that needed further investigation," she said.

Merritt, a Republican, has said he stands by the audit and that it should have been released.

N.C. State hired Mary Easley in 2005 and promoted her last year to a $170,000-a-year position. The university fired her in May, citing budget cuts to programs she oversaw.

Questions about her hiring led to the resignations of the university's former provost, Larry Nielsen, former Chancellor James Oblinger and Campbell McQueen, the former chairman of N.C. State's Board of Trustees.

All three have denied any wrongdoing. Nielsen testified to the grand jury last month; Oblinger testified in May.

Federal investigators have also subpoenaed DMV records related to Campbell, also an Easley ally who provided the governor with air travel.

George Tatum, a former commissioner of the Division of Motor Vehicles under Easley, also appeared at the courthouse Thursday morning. He declined to comment.

In February 2007, Tatum dismissed without explanation, a citation that could have shut down an inspection station that Campbell owned.

Tatum resigned in July 2007 amid allegations that he helped a friend get a vintage truck title for a replica vehicle, a move that can save owners hundreds of dollars in taxes.

Easley's former aide, Susan Rabon,was also at the courthouse for about three hours Wednesday. She declined to comment as she left. It's unclear what aspect of the investigation might have warranted testimony from her.


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  • StanleyCup Aug 20, 2009

    I hope this was on HER time not the public's??? She better have been OFF the clock!! or on an annual day. I would ahve had to take one, so should SHE!!

  • news4u Aug 20, 2009

    Look at Perdue, Rand & Basnight - you can smell the stench all the way to the coast.

  • suehi2010 Aug 20, 2009

    The self-serving Easleys and their cronies are simply crooks who deserve to be charged with stealing and prosecuted. Queen Easley had no problems charging the tax payers with her indulgences here and abroad. She feels entitled, she is above the law and deserves everything she desires. While the Wake County tax payers were loosing their jobs, their homes being foreclosed she was traveling abroad like royalty, running up wasteful charges that she demands we (Tax Payers) owe her.

    She should be charged,prosecuted, and made to reimburse the hardworking tax payers for her undeserved luxuries.

  • pbjbeach Aug 20, 2009

    If you ask me the feds need to look into the campaign donations to the easleys that came from road building contractors . an as just what they have received in return for these campaign contributations from the ncdot as that the ncdot has been kept from doing the jobs of inspections by the states own state hired inspectors that are supposely charge with the duty's of inspections on highway construction contracts in conjunctions with state road building contractors where that the state own inspectors are supposely to be on these projcets to enforce the states soeceficiations for roads & bridges an other incindential construction items in conjunction with the build of new highway construction projects thank you

  • FE Aug 20, 2009

    This has got to be from a "later" version of the news story:

    "Wood, a Democrat, said Mary Easley's attorney, Senate Majority Leader TONY RAND, would have disputed the initial findings."

    Aside from a huge "Duh!!!" I do believe we have a serious case of a big ole fox keeping watch over those chickens..... Attorney/client issues could really gum up the works.

    Maybe Mary could become Tony's lawyer to complete the circle?


  • superman Aug 20, 2009

    She didnt do any of the research on the audit. All she did was read it and she doesnt believe it to the facts. So if she didnt research and do the audit how would she know about any of the information as to whether it is factural and unbaised? Maybe they will catch her in a lie and she would go to prison for lying to the grand jury.

  • clregister Aug 20, 2009

    Looks like Mary Easley gave Sarah Palin pointers on how to get the taxpayers to pay for personal expenses. We haven't had a Republican governor in a long time, but I remember Jim Martin paid Jimmy Green a ridiculous amount of money for "consulting".
    This entitlement at the expense of the taxpayers is prevalent on both sides of the aisle. Has anyone tried to get a job in state government? You have to know someone. It's been that way forever.

  • Professor Aug 20, 2009

    She will lie to save herself. This is what this world has come to.

  • hywilson Aug 20, 2009

    One Love-Thanks!

  • atozca Aug 20, 2009

    looks like you are straining to keep a straight face Ms. Wood.