STATE AUDITOR ACTS ON TIP, FINDS ‘TROUBLING’ TOW USE AT NEBRASKA DEPARTMENT OF TRANSPORTATION

LINCOLN - Nebraska State Auditor Mike Foley initiated an investigation after receiving a tip about potential misuse of state funds within the Nebraska Department of Transportation (NDOT). The audit uncovered that Loren Cuda, a highway fleet shop supervisor at NDOT, had directed subordinates to use state-issued purchase cards to pay his Wahoo-based towing business for services rendered to the department. Between April 2024 and July 2025, four such transactions totaling nearly $1,000 were identified, despite NDOT possessing its own towing resources. The invoices lacked sufficient details to verify the reasonableness of charges, and the approval process for these purchases was inadequately documented.

Foley expressed concern that these actions might violate the Nebraska Political Accountability and Disclosure Act, which prohibits public officials from using their position for personal financial gain. He has referred the matter to the Nebraska Accountability and Disclosure Commission for further review, where violations could lead to misdemeanor charges. In response, NDOT acknowledged potential procedural shortcomings and has suspended future transactions with Cuda's business. The department is also reviewing its purchasing processes to prevent conflicts of interest and ensure compliance with state laws. 

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