NEWPORT NEWS, Va. – State funds were suspended to the Newport News/Williamsburg Airport on Friday because of a report that funds were wrongly used.
A State Transportation Secretary said the Virginia Department of Aviation learned the airport used $3.5 million in state funds to pay off a loan.
The secretary said state funds are only supposed to be used for capital improvements of the facilities.
The Governor was contacted because of these findings and money going to the airport was suspended.
An audit on the airport will be completed as a result of the reported mishandling of state funds.
Later Friday the Director of Air Service for the airport released more information about the issue.
She stated that using the money in this way was voted on back in June of 2014.
The Director said the airport is fully cooperating with the investigation and that the funds were being used for the airport.
The loan in question was a credit line loan agreement between TowneBank and People Express and the airport had paid TowneBank $4.5 million under its guarantee.
