Miami May Delay $120 Million Bond on Audit, Possible SEC Probe

By Daniel at 27 November, 2009, 3:58 pm

Nov. 27 (Bloomberg) — Miami may delay a $120 million bond sale after an audit showed lax budget practices and the city learned of a possible U.S. Securities and Exchange Commission inquiry, Mayor Tomas Regalado said.

Officials had planned to travel to New York on Dec. 7 to meet with underwriters about the bonds, which were to finance parking garages for the new Florida Marlins baseball stadium, the mayor said in an interview. The $515 million sports complex for the Major League Baseball team is being built with $360 million of public funds.

The internal audit showing the city didn’t comply with its budget standards, and a possible SEC probe, which would have to be disclosed in bond-sale documents, might alter timing of the issue, Regalado said.

“What concerns me about the audit is the appearance of impropriety and whether the SEC will follow up,” Regalado said. “This could affect the sale of the bonds.”

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