BOSTON — State Auditor Diana DiZoglio said she plans to sue the agency that oversees Logan International Airport, accusing officials of withholding details of settlements with state employees her office was seeking for a required audit.
On Wednesday, DiZoglio released an audit that found the Massachusetts Port Authority entered into a $1.37 million settlement agreement in 2022 that her office says took advantage of non-disclosure laws to conceal allegations that included gender- and disability-based discrimination as well as unequal pay.
But the Methuen Democrat said the review, required every three years under state law, was hindered by the quasi-public agency’s refusal to turn over details of the 2022 settlement and failure to disclose other secretive agreements to auditors.
She also claimed that Attorney General Andrea Campbell’s office and MassPort “improperly” shared details about the audit with employees and retirees who were not involved in the review.
“By doing so, they interfered with lawful oversight and hampered the audit process, while delaying, and in Massport’s case blocking, our statutorily authorized access to some of these records required to conduct our audit,” DiZoglio said at a Wednesday briefing.
But a MassPort spokeswoman said the agency was “fully cooperative” with the auditor’s office during its review and pointed out that the report contained “inaccuracies” such as a claim that the 2022 MassPort settlement was funded by taxpayers. The agency is funded by money from its own operations.
“Massport, as a public employer, notified more than 100 current and former employees that the auditor had requested to review their files as required by the Massachusetts Fair Information Practices Act,” MassPort spokeswoman Jennifer Mehigan said. “A small number of individuals objected, which is their right, and we notified the auditor’s office of this.”
The MassPort audit was part of a broader review of state universities and colleges, quasi-state agencies and constitutional offices, covering the period of Jan. 1, 2019, through Dec. 31, 2024.
Overall, DiZoglio’s office said the investigation revealed that the 21 agencies it reviewed entered into at least 263 agreements totaling about $6.8 million in taxpayer funds during a six year period.
Auditors said they found a patchwork of policies that have largely allowed the agencies to shield details of the agreements from the public’s view. Some agencies refused to provide details of a settlements, they said.
“Without clear, documented policies, agencies cannot ensure settlements are handled fairly, legally, or consistently,” the auditor’s report states. “This lack of structure also makes it difficult for the public to understand how their tax dollars are spent, while increasing the risk of accounting errors because the Office of the Comptroller may not be able to properly review settlement payments.”
As a state lawmaker, DiZoglio pushed for a state ban on nondisclosure agreements that are commonly used by large companies to protect trade secrets, resolve arbitration cases and settle workplace conflicts.
DiZoglio, victims rights advocates and other critics who are pushing to restrict the practice say NDAs are increasingly shielding powerful men from accusations of abuse or rape.
“Taxpayer-funded non-disclosure agreements continue to be used across state agencies and can provide cover for alleged unlawful and unethical behavior,” DiZoglio said. “It is unacceptable that the Legislature and governor have still not yet worked to pass a law banning the abuse of taxpayer-funded non-disclosure agreements.”
Still, legal experts say a total ban on nondisclosure and arbitration clauses raises constitutional issues.
Pro-business groups such as the Associated Industries of Massachusetts argue that arbitration and other non-judicial remedies are crucial to resolving workplace conflicts. Banning the practice would clog the courts with employment law cases, the group asserts.
To date, about a dozen states — California, Maryland, New Jersey, Tennessee, Vermont and Washington — have banned or restricted the use of nondisclosure agreements in settlements involving claims of sexual assault, harassment or discrimination, according to the National Conference of State Legislatures.
Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.