Strip clubs, massage parlors and a suspected house of prostitution have made for dramatic headlines in recent weeks as the Port of Oakland deals with accusations that company executives used public money on improper expenses.
Two Port of Oakland officials have been suspended in connection with a $4,500 expense at a strip club in Houston, Texas. Suspended maritime director James Kwon was reimbursed $4,500 for an outing at Treasures strip club while entertaining shipping industry executives. A receipt submitted listed the expense a dinner for 12. In addition to the $4,500 for expenses at Treasures, Kwon billed the port for $476 in haircuts, $1,000 in wine, and bills from massage parlors, golf fees and a $350 pair of golf shoes.
Earlier, the port placed executive director Omar Benjamin on paid leave and replaced him with the port's aviation chief Deborah Ale Flint. The port also announced it hired law firm Arnold & Porter to assist with the probe.
“To date, we have no evidence of any kind that any criminal activity has taken place,” said Flint in a statement issued October 25.
“As the Acting Executive Director, I am compelled to investigate these issues thoroughly and make sure this organization is operating in a safe, secure, legal, and ethical way.”
A downtown Oakland karaoke bar that nearby residents suspect might double as a brothel is another tangent to the ongoing investigation. TV station KTVU recently shot video at Cafe Juliet after learning that a Port of Oakland official had spent public funds there. KTVU's cameras recorded two uniformed Oakland police officers making repeated visits there. The bar manager stated there was no sexual activity taking place and that the officers were merely performing security checks to ensure that customers in private karaoke rooms weren't consuming drugs.
“We will be as transparent as the law allows, releasing whatever information we uncover that we legally can,” says Flint. “We will get to the bottom of this and then take the appropriate action. Introspection can be a good thing, especially for a public agency like the Port, which is a $437 million per year operation that generates over 73,000 jobs in this region.”
The Port of Oakland oversees the Oakland seaport, Oakland International Airport, and 20 miles of waterfront. The Port of Oakland was established in 1927 and is an independent department of the City of Oakland.