Boston, January 27, 2026
State Auditor Diana DiZoglio has announced plans to sue the Massachusetts Port Authority, accusing the agency of obstructing an audit related to settlement agreements. The Auditor’s Office claims Massport withheld crucial personnel records and failed to disclose essential details of various settlements, raising serious concerns about transparency within the state government. This legal action highlights a broader effort to enhance accountability in the management of public funds and scrutinize state agencies’ handling of sensitive agreements.
Boston, Massachusetts
State Auditor Diana DiZoglio has announced her intention to pursue legal action against the Massachusetts Port Authority (Massport), alleging that the quasi-public agency obstructed an audit investigating settlement agreements involving state employees. This significant development, reported as recently as January 25, 2026, underscores persistent concerns regarding transparency and accountability within state government. The Auditor’s Office asserts that Massport withheld crucial personnel records and failed to provide comprehensive details related to various settlements, hindering a mandated oversight process.
Auditor’s Findings and Allegations
The planned lawsuit stems from an audit conducted by the State Auditor’s Office, which examined settlement agreements, including those with non-disclosure and non-disparagement clauses, across 21 state agencies. The audit spanned from January 1, 2019, through December 31, 2024. A particularly concerning finding involved a $1.375 million settlement agreement executed by Massport in 2022. According to the audit, this agreement utilized confidentiality and non-disparagement language, which the Auditor’s office contends served to conceal serious allegations, including those of gender-based discrimination, disability-based discrimination, unequal pay, and disparate treatment.
The Auditor’s Office further reported that Massport allegedly obstructed access to a significant number of personnel records legally required for the audit. During a Data Reliability Assessment, auditors requested personnel files from a sample of employees at Massport and the Attorney General’s office. It was during this review that auditors discovered seven additional settlements Massport had not initially reported. Furthermore, Massport reportedly denied the Auditor’s Office access to 10 out of 131 requested records. The Auditor criticized what she described as a broader “culture of withholding” information within the state government.
Interference with Audit Process
Beyond the alleged withholding of documents, the audit also highlighted concerns that Massport, alongside the Office of the Attorney General, improperly shared sensitive information about the ongoing audit with employees and retirees who were not directly involved in the review. This action, the Auditor’s Office stated, jeopardized the integrity of the audit process and obstructed access to records, which is statutorily authorized under Chapter 11, Section 12 of the Massachusetts General Laws.
Massport’s Response
In response to the Auditor’s claims and the announced legal action, a spokesperson for Massport, Jennifer Mehigan, maintained that the agency had been “fully cooperative” with the Auditor’s team throughout what was described as an “unusually lengthy process.” Massport also disputed certain “inaccuracies” within the audit report, specifically challenging the assertion that the $1.375 million settlement was funded by taxpayers, noting that Massport generates its own revenue. The agency clarified that it notified current and former employees about the auditor’s request to review their files in adherence to the Massachusetts Fair Information Practices Act. As of recent reports, Massport stated it had not yet received a formal complaint or been served with a lawsuit by the Auditor’s office.
Broader Implications for State Transparency
This confrontation with Massport is part of a larger initiative by the State Auditor’s Office to scrutinize the handling of settlement agreements across state agencies, aiming to ensure transparency and proper fiscal management of public funds. The audit found widespread inconsistencies in how agencies manage such settlements; nineteen of the 21 agencies reviewed lacked written policies for approval, documentation, retention, or tracking of agreements. This absence of clear policy creates vulnerabilities for ensuring fair, legal, and consistent handling of settlements, making it difficult for the public to understand how taxpayer dollars are spent and increasing risks of accounting errors. The Auditor’s efforts for greater oversight extend to an ongoing standoff regarding her authority to audit the state legislature itself, underscoring a consistent theme of seeking enhanced governmental transparency. The pursuit of accountability in these matters speaks to a fundamental principle of public trust, where the clear and lawful administration of state affairs is not merely procedural but forms the very bedrock of citizen confidence.
Frequently Asked Questions
What is the central issue leading to the State Auditor’s planned lawsuit?
State Auditor Diana DiZoglio plans to sue Massport due to alleged obstruction during an audit of settlement agreements, specifically concerning the withholding of personnel records and details.
Which entities are primarily involved in this dispute?
The primary entities involved are the Massachusetts State Auditor Diana DiZoglio and the Massachusetts Port Authority (Massport).
What are Massport’s alleged actions during the audit?
Massport is accused of obstructing access to personnel records, withholding details of settlements, and failing to disclose other secretive agreements. Additionally, Massport and the Attorney General’s office allegedly shared sensitive audit information with employees not involved in the review.
How has Massport responded to the Auditor’s claims?
Massport asserts it was “fully cooperative” throughout the audit process and disputes some inaccuracies in the Auditor’s report, including the claim that a particular settlement was taxpayer-funded. Massport also stated it notified employees about record reviews as required by law.
What is the broader context of the Auditor’s actions?
This legal action is part of a wider, comprehensive review by the State Auditor’s Office into how state agencies handle settlement agreements, aiming to enhance transparency and accountability in government operations.
Key Aspects of the State Auditor’s Dispute with Massport
| Feature | Description | Scope |
|---|---|---|
| Parties Involved | Massachusetts State Auditor Diana DiZoglio and Massachusetts Port Authority (Massport). | State-level |
| Nature of Dispute | Alleged obstruction of an audit concerning settlement agreements, including withholding personnel records. | State-level |
| Audit Period | January 1, 2019, through December 31, 2024. | State-level |
| Key Allegations |
|
State-level |
| Massport’s Defense | Claims “fully cooperative” with the audit process; disputes report inaccuracies (e.g., funding source of settlement); states employee notifications were legally compliant. | State-level |
| Auditor’s Broader Goal | Part of a wider review of state agency settlement agreements to ensure transparency and accountability in government. | State-level |
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