A leaked letter from four board members of the Toronto Port Authority raises questions about lavish spending, including $50,000 at an upscale steak house, and concerns that governance rules are not being followed.

It also reveals the depths of a nasty split in the board of directors — appointed by the city, province and federal governments.

The letter, dated March 30, 2009, from David Gurin, Christopher Henley, Michele McCarthy and Douglas Reid to Transport Minister John Baird outlines concerns about the board’s actions, ranging from conflict of interest to not following procurement policy by providing $65,000 to hire an outside law firm whose legal opinion was kept from certain board members.

The letter was released yesterday by NDP MPP Olivia Chow at a news conference, where she said Auditor General Sheila Fraser should be called in to go through the books.

Lisa Raitt, who was CEO until she was elected to Parliament last October and now serves as natural resources minister, racked up nearly $80,000 in hospitality and travel expenses in 2007 and 2008, said Chow, who wants a proper audit of that spending.