A road map to a criminal probe

The state review of Norfolk's light rail project is remarkable for what it reveals over 139 pages: that officials at Hampton Roads Transit hid the escalating price of the project, kept two sets of books, maintained haphazard and incomplete records and didn't follow standard procurement rules.

It is also remarkable for what it doesn't say: that crimes were likely committed.

As damning as the report is, the Virginia Department of Transportation's inspector general was asked to look at management practices and procedures, not prepare a criminal case. Nevertheless, some findings seem to provide a road map for future investigations:

- HRT didn't adequately oversee land acquisition, contingency funding, or even whether The Tide complied with federal agreements. Such failures could lead to demands for the return of $192 million in federal money.

- HRT didn't adhere to either procurement laws or its own internal controls.

- Repeatedly, communications between HRT and other responsible parties broke down or were sabotaged.

- Before Norfolk signed an agreement with the Federal Transit Agency in 2007 to be responsible for costs beyond the original $232 million budget, HRT officials knew the budget was $8 million more.

- The IG found no evidence that HRT officials told the feds before February 2008 that the budget was deeper in the red. At the end of 2008, HRT officials announced that the project would cost $288 million.

- Within months of making that estimate, the report said, HRT officials knew it was wrong. Early this year, HRT said the figure was closer to $340 million.

No one comes out looking innocent. At various times, HRT management neglected to tell Norfolk officials and even its own board what was going on. At various times, too, Norfolk officials knew things they didn't tell the City Council.

It would be convenient - and wrong - to blame a structure that made HRT responsible for construction but not for the money and made Norfolk responsible for money but not construction. Clearly, HRT was beyond its depth in taking on the project, and Norfolk was beyond its depth in ensuring HRT knew what it was doing.

HRT's president, Michael Townes, was forced to resign. Its champion on the Norfolk City Council, Randy Wright, lost his bid for re-election. And as The Pilot's Debbie Messina, who uncovered much of the mess, wrote, several other HRT employees are gone.

Philip Shucet, former head of VDOT, was brought in specifically to right the ship. Shucet asked for the state review and said he would quickly implement 31 recommendations for changes at HRT.

Still, enormous damage to the public trust remains and must be undone. The success of Norfolk's light rail system - critical to both redevelopment and to providing a transportation alternative - depends on delivering service beyond the city limits. For that to happen, there must be no doubts about oversight or HRT's ability to handle the project.

"When you're trusted to spend the public's money... you're expected to tell the truth," Shucet said. " And to be certain, a fear of the truth always leads to a bad end."

In this case, that end should begin with an exhaustive federal investigation to make sure that anyone who committed a crime is held accountable. The state report already provides an important guide to some of the worst abuses.

Given the taxpayer dollars involved and the allegations in the report, an investigation should include every elected, appointed and hired employee of any agency involved. It shouldn't stop until the truth - bad, good or indifferent - is uncovered.