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Delaware officials push back on audit finding Port of Wilmington mismanaged

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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the state millions by failing to conduct proper oversight of the port, made misleading comments to the public and used outdated economic development to justify pouring millions in taxpayer funding into port expansion projects.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.

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“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.

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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.”

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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.



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Delaware Supreme Court upholds reforms to curb ‘DExit’ concerns

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Delaware Supreme Court upholds reforms to curb ‘DExit’ concerns


This story was produced by Spotlight Delaware as part of a partnership with Delaware Online/The News Journal. For more about Spotlight Delaware, visit www.spotlightdelaware.org.

A Delaware law passed last year in the wake of escalating assaults on the state’s corporate brand shielded powerful company leaders from facing certain lawsuits brought by smaller investors. 

What it didn’t do was violate the Delaware Constitution, the state Supreme Court ruled on Friday, Feb. 27. 

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More than three months after hearing arguments, the justices ruled that the corporate law reform – known as Senate Bill 21 – did not strip Delaware’s prominent Court of Chancery of its constitutional authority to decide when a business deal is fair.

“The General Assembly’s enactment of SB 21 falls within the ‘broad and ample sweep’ of its legislative power,” the justices stated.

The ruling ends a bruising fight in Delaware over when the state’s business court should allow small-time investors to interrogate insider deals struck within companies by founders or other business leaders.

The ruling also averts what could have been an embarrassment for the state’s legal and political establishment had the high court overturned the law. 

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More than a year ago, Tesla CEO Elon Musk — the world’s richest person — was calling on business leaders to move their companies’ legal homes out of Delaware. Musk had launched the campaign, which became known as “DExit,” after a Delaware Chancery Court judge ruled that he could not accept a multibillion-dollar pay package from Tesla.  

Just as the campaign appeared to be gaining a foothold, Gov. Matt Meyer, legislative leaders, and Delaware attorneys who represent corporations threw their collective heft behind SB 21.

They argued then that the legislation amounted to a “course correction” that would bring the state’s business courts back into alignment with rulings from a decade ago. Many also said the bill was needed to pacify executives who were considering following Musk’s calls to move their companies’ legal homes out of Delaware.

In response, a cadre of critics — which included national law professors, pension fund attorneys, and a handful of progressives within the Delaware legislature — derided SB 21 as a “billionaires bill.” 

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Some also argued that the legislation was the latest in a string of recent changes to Delaware corporate law that have shifted the state away from protecting shareholder rights and toward giving greater deference to powerful executives.

Meyer and others SB 21 supporters rejected those characterizations last year. And on Friday, he celebrated the Supreme Court’s ruling.

In a statement, he said the decision affirms that “Delaware is the gold standard locale for global companies to do business.” He also stated that the number of companies that maintain their legal home in Delaware had increased throughout 2025 despite the DExit campaign.

“In short, SB 21 is working, and I’m glad it will continue to be the law,” Meyer said.  

The legal arguments for SB 21

When arguing against SB 21 in front of the Supreme Court last fall, one attorney asserted that the new law removed the Chancery Court’s time-honored and constitutional duty to say what is fair – or equitable – in a business dispute.  

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The attorney, Gregory Varallo, argued that by removing a shareholders’ ability to sue their company, the law reduced what he described as the immutable power of the Court of Chancery to oversee a “complete system of equity.”

During his arguments, Varallo also offered the justices an unusual acknowledgement, stating that he knew that his stance was unpopular — and that he understood “well the pressures on this court.”

The comments were a likely reference to the consensus of big business groups and the state’s political establishment that believed SB 21 was necessary for Delaware to remain the world’s preeminent corporate domicile. 

Following Varallo, Washington, D.C.-based attorney Jonathan C. Bond defended SB 21, in part, by characterizing his opponents arguments as unprecedented. If adopted, he said they would imperil several existing Delaware laws that go back decades. 

He also argued that changing the rules of corporate law – as SB 21 did – “is the same as wiping out jurisdiction merely because it makes some plaintiff’s claims harder.”

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Also arguing in favor of SB 21 during the hearing was William Savitt, an attorney with the  Wachtell, Lipton, Rosen & Katz – among the most prominent corporate law firms in the country.

Last spring, Meyer hired Savitt’s firm to represent the state in the legal defense of SB 21 for a budget rate of $100,000. By comparison, Wachtell Lipton charged Twitter $90 million in 2022 to ferry that company through its arduous, four-month-long acquisition by Elon Musk.

Wachtell’s client list also includes Mark Zuckerberg and other Meta executives and board members, who last summer settled a seven-year-long, multibillion-dollar shareholder lawsuit in the Delaware Chancery Court.

During his arguments on SB 21, Savitt said equity as determined by judges must follow the statutes created by the legislature, and “not displace the law.” 

“No natural reading of the words (of the Delaware Constitution) support plaintiff’s position,” he said. 

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Police identify victim of Wilmington motorcycle crash

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Police identify victim of Wilmington motorcycle crash


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State police identified 29-year-old Brian Silva of New Castle as the victim of a fatal motorcycle crash in Wilmington.

Silva was riding a Harley-Davidson northbound on Dupont Highway approaching Millside Drive in Wilmington around 3:30 p.m. on Feb. 27 when it collided with the rear of a stopped Lexus at that intersection, police said. Silva was ejected from the motorcycle. He was taken to the hospital, where he died.

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Delaware State Police are still investigating this incident, and anyone with information is encouraged to reach out to them or to Delaware Crime Stoppers.



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When will Delaware warm up? After snow, ice Tuesday, temps will rise

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When will Delaware warm up? After snow, ice Tuesday, temps will rise


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Meteorological winter has ended and we’ve entered spring.

However, there’s still a last winter blast hitting Delaware early this week before a spring warm up hits at the end of the week.

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Here’s a look at the Delaware forecast.

Will Delaware see more snow?

After a brisk Monday, March 2 with sunny skies and highs only reaching 35 degrees, there’s a chance of snow after 1 a.m. Tuesday, March 3 with freezing rain after 4 a.m. in New Castle County. Snow and freezing rain are expected before noon Tuesday, March 3. The county may receive less than a half inch of accumulation.

In Kent County and Sussex County, there’s a chance of snow and freezing rain after 1 a.m. Tuesday, March 3.

When will it warm up in Delaware?

It will start feeling like spring as warmer air moves into the First State on Tuesday evening, March 3, but wet weather is coming as well.

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Rain is predicted from Tuesday, March 3 through Friday, March 5, but spring-like temperatures will make it bearable. In New Castle County temperatures will range from the mid-50s on Wednesday, March 3 to the 60s on Thursday, March 4 and Friday, March 5. Kent County should see temperatures in the 60s and Sussex County will see 70s during the mid- to later part of the week

What’s the weekend forecast?

Remember when you were daydreaming about warm weather during the polar vortex or blizzard? Well, it is coming next weekend.

The forecast is calling for sunny to partly sunny skies throughout Delaware on Saturday, March 7 and Sunday, March 8. Highs will reach the upper 60s in the north to the low 70s in the south.

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