The Memphis Area Transit Authority (MATA) is not only tens of millions of dollars over budget, but they also can’t account for $2 million in credit card charges! MATA has operated without a MATA’s Chief Financial Officer since October 2023.
Memphis paid consultant PricewaterhouseCoopers (PwC.com) $600,000 to review the finances of MATA and found that there are millions in documented examples of improper spending of grant money, inappropriate spending on credit cards, and more. The audit, paid for by taxpayers, has produced a 37-page report. The question is what, if any, action will be taken as a result of the disclosures in the audit.
Among the questionable expenses revealed in the audit was an expenditure of $300,000 by MATA on an NBA Memphis Grizzlies sponsorship, including a suite at the FedEx Forum for both University of Memphis and Grizzlies basketball games. The report did not detail who actually used the tickets. However, the report noted that $11,269.22 in credit card charges was spent on food and drinks at Memphis Grizzlies games. MATA has previously acknowledged that some credit cards were also used for spa treatments and expenses.
MATA spent $4.6 million for office space in downtown Memphis, with much of that space being unused. Another $1.2 million was spent on office design and furniture, including an executive office with a leather couch and expensive furnishings.
The audit also questioned the way MATA handled $300,000 in federal grant money. Some of those expenditures could lead to the federal government “clawing back” those funds.
Further state, federal, and local investigations into the operations of MATA will follow this audit.
Steve Gill is publisher of TriStar Daily.
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