Delaware officials push back on audit finding Port of Wilmington mismanaged

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A report released by Delaware’s state auditor found that the Diamond State Port Corporation Board, the quasi-public entity that oversees the Port of Wilmington, cost the state millions by failing to conduct proper oversight of the port, made misleading comments to the public and used outdated economic development to justify pouring millions in taxpayer funding into port expansion projects.

State Auditor Lydia York’s audit, which covers the fiscal years between July 1, 2021, and June 30, 2025, got immediate pushback from Gov. Matt Meyer’s administration, former Gov. John Carney, who is now the mayor of Wilmington, and some state Senate Democrats. State officials and DSPC board members say the findings are “incomplete” and “inaccurate.”

York defended the report and her charge to provide transparency and accountability.

“This is the most comprehensive independent review of the DSPC’s operations since the state purchased the port in 1995,” York said. “I believe it sets a new standard for government transparency.”

The auditor announced the performance audit in February, sparked by the Carney administration’s transfer of nearly $200 million to the port for the Edgemoor container terminal project, the largest-to-date infusion of state money into the DSPC for the project. It happened less than a week before Meyer took office, during the two-week tenure of former-Gov. Bethany Hall-Long.

In February, York questioned the timing. A spokesperson for Meyer spoke to media outlets at the time, reportedly criticizing the lack of transparency and accountability of the move. On Friday, Meyer’s office did not respond to questions regarding whether the governor stood by those earlier statements. York said the transfer was legal.

“Today’s announcement confirms that transfer was fully lawful and affirms the Legislature has an important role — alongside the governor — to ensure the Edgemoor Port project can fulfill its promise as the most transformational economic development project in the history of our State,” said Delaware Sen. President Pro Tempore Dave Sokola and DSPC member and state Sen. Darius Brown in a joint statement on the report.

Delaware has a $635 million plan to rescue the Port of Wilmington by building a new port 2 miles north of the one that’s been in operation for a century and is known for handling fruit and automobiles. The project has been plagued by legal challenges from the Philadelphia Regional Port Authority and ports affiliated with Holt Logistics Corp., whose affiliates operate terminals in Philadelphia and South Jersey.

Port audit’s five findings

The audit found five ways the port corporation board fell short.

• Improper use of executive sessions
• Failure to hold transparency with members of the International Longshoremen’s Association
• Prior port operator Gulftainer USA’s failure to make payments under its 2018 contract, leading to massive state intervention
• Use of outdated economic impact data for the Edgemoor project.
• Poor oversight of Gulftainer USA

The audit report asserts that in January and September 2022, DSPC violated open meeting laws by not providing required public notice or by talking in secret when the items could have been discussed in public. The report also found the September closed door session did not discuss the items board members said were on the agenda.

Current DSPC Board President and Delaware Secretary of State Charuni Patibanda-Sanchez denied that the report’s findings were true.

Under the Meyer administration, since taking over as Chair, the DSPC has been fully committed to transparency and has provided over 300 files to the Auditor’s Office for the purpose of this performance audit. Despite being given full information, we are discouraged that the ‘findings’ contained significant factual inaccuracies which ultimately led to incorrect and potentially misleading conclusions,” she said in a statement.

Carney’s deputy chief of staff Daniel Walker told WHYY News that the mayor also does not believe the report is factual.

“Unfortunately, this audit is a distraction from the substantive progress made by new operator Enstructure and current efforts to expand the port and grow the good jobs there,” Walker said in a statement. “The focus should be on what it takes to make this expansion happen as soon as possible.”

York said that the DSPC board was given more than a month after completing the report to submit documentation that disproved the report’s findings, but none was provided to her team.