NC auditor testifies about unreleased Easley probe

RALEIGH, N.C. (AP) — State Auditor Beth Wood said Thursday she spent the morning before a grand jury defending why she didn't publicly release an audit into former first lady Mary Easley's job at a state university.

Wood told reporters outside the federal courthouse that she did not face any political pressure to keep the audit private but simply wanted to continue working on the report to ensure that it was solid. She said Mary Easley's attorney, Senate Majority Leader Tony Rand, would have disputed the initial findings.

"If he was doing his job and doing it well, he would try to punch holes in the audit I was putting out," Wood said. "If people start to punch holes in my audits, then I have no credibility in my audits."

Wood said Rand never contacted her about the inquiry.

Federal investigators had also asked Wood to testify on whether she had any "business ventures" or financial ties between the Easleys or others mentioned in a federal probe. A spokeswoman for Wood said she had no such ties.

Former State Auditor Les Merritt, a Republican who left office in January, began the audit into Mary Easley's job at North Carolina State University. Federal investigators have been looking into the $170,000-a-year job, and three university officials have resigned amid the probe.

Wood, a Democrat, said the audit needed more work after the university provided a response to state investigators.

"It did bring up issues that needed further investigation," she said. Wood has said she decided to close the audit to allow federal investigators to pursue the matter, and the office has since turned over files to federal authorities who requested them as part of subpoenas.

Merritt acknowledged Thursday that he didn't get a chance to review N.C. State's response to the inquiry, but he said he was surprised that the audit didn't eventually become public, especially since so many people were interested in the matter.

"I know there were some very credible auditors, who had been working there a long time, who had been working on the report," Merritt said. "I think the expectation was that a report would be completed and it would go out."

Federal investigators have sent several subpoenas to a variety of state agencies seeking information about former Democratic Gov. Mike Easley, his wife's job and their travel.

George Tatum, a former commissioner of the state Division of Motor Vehicles, also appeared at the courthouse Thursday for several hours, declining comment. Tatum, an Easley appointee, headed the DMV under Easley before resigning in July 2007 amid allegations that he helped a friend get a vintage truck title for a replica vehicle, a move that can save owners hundreds of dollars in taxes.

In February 2007, Tatum dismissed without explanation a citation that could have shut down an inspection station owned by McQueen Campbell, an Easley ally who provided the governor with air travel. Federal investigators have subpoenaed DMV records related to Campbell.

Since March, Tatum has worked as a risk assessment coordinator for Fayetteville State University, overseeing campus preparations for emergencies. Jeffrey Womble, a spokesman for Fayetteville State, said the university is aware that Tatum got a federal subpoena but said it was issued to him personally and is not related to the institution.

Copyright 2009 The Associated Press.