COUPEVILLE — Mired in financial problems and on the heels of a scathing state audit, Island Transit officials are looking at a new interim director with controversial baggage of his own.
Board members unanimously voted last week to enter contract negotiations with Kenneth J. Graska.
Graska was executive director of Community Transit in Snohomish County in 1993 when it was investigated by the FBI over a bribery and kickback scandal.
As The Daily Herald reported at the time, Graska resigned from CT after a management audit described his “often autocratic and intimidating” treatment of employees and “very thin” support. The audit was ordered after the FBI raided CT’s headquarters.
Graska never was named a suspect in the case, but he admitted being told about possible kickbacks in his maintenance department and chose not to follow up.
CT’s then-maintenance director resigned after admitting he accepting gifts from a former owner of Ed’s Transmission Allison, Inc. The company billed CT for work that wasn’t acutally done and charged for parts that were never installed.
The transmission company and its owner were convicted in U.S. District Court of five counts of mail fraud and sentenced to 2.5 years in prison. He and the company also were ordered to repay CT more than $825,000 in restitution for the scam, which ran from 1985 to 1993 — the years Graska ran CT.
Oak Harbor Mayor Scott Dudley, a member and critic of the transit board, said he was disappointed in Graska getting the nod, but the choice made little difference.
“They could have chosen Mother Teresa,” he said, “and the community would question the selection because of their history.”
Island Transit’s troubles erupted this past summer after the severity of financial problems came to light, necessitating layoffs of 24 employees and the elimination or alteration of five routes.
Then-director Martha Rose resigned in September. As a result of a state audit, Island County Prosecutor Greg Banks asked the Washington State Patrol to investigate the agency; the investigation is ongoing.
Graska, who lives in Valencia, Calif., most recently has been assistant general manager with MV Transportation, assisting in the development and management of the Microsoft employee commuter bus and transportation services.
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