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Tuesday, May 21, 2013 | 3:35 a.m.

Posted: 10:11 p.m. Wednesday, Nov. 14, 2012

Questionable spending by Port of Oakland could be as high as $400,000

Port of Oakland (file)
Port of Oakland (file)

KTVU.com

OAKLAND, Calif. —

New information on questionable spending at the Port of Oakland suggests the issue could go far beyond a $4,500 tab at a Houston strip club that KTVU uncovered last month.

While his name was initially redacted from the incriminating receipt, the Port of Oakland finally revealed Executive Director Omar Benjamin was with Maritime Director James Kwon when they spent more than $4,500 in public money at Treasures Strip Club in Houston.

Benjamin abruptly retired on Monday.

But KTVU has learned there is much more questionable spending the Port is keeping secret.

KTVU has been requesting information on an internal audit conducted by the port for more than three months. KTVU has independently learned it contains between $200,000 and $400,000 in questionable spending on travel and other expenses.

A source who is familiar with the audit told KTVU as many as eleven port employees are involved.

For the past two days, the Port of Oakland has declined requests for an interview, instead offering a written statement from Board President Gilda Gonzales.

"The Board is looking forward to completing its investigation as soon as possible and then taking appropriate action, " the statement read. "Until then, we are pleased to be turning the page toward a new era of leadership, transparency and accountability, and know there is more hard work ahead."

As part of its investigation, the port hired two public relations firms to handle the crisis with one of them charging $400 an hour.

Port officials still won't tell KTVU how much they are paying the second firm.

On Wednesday, Maritime Director James Kwon's attorney defended some of his expenses, saying they led to millions in dollars of business at the port.

The Board said it expects to hear an update on the investigation when it meets Thursday.

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