The Pennsylvania Turnpike Commission lost at least $109 million in risky interest investment moves, Auditor General Jack Wagner says.
The state’s fiscal watchdog said Tuesday the loss of taxpayer money in risky interest rate swap arrangements was only one part of a gloomy financial situation uncovered by his audit of the Turnpike Commission, which is more than $8 billion in debt and spends more than 47 cents of every dollar on debt-service payments.
In a response to the audit, the Turnpike Commission said the swaps saved $10 million on the payments.
Wagner disagreed. He said the turnpike lost $29 million on 23 active swap deals between 2007 and 2011, the period examined by the new audit. The turnpike also paid more than $100 million in fees and interest for those swaps.