October 25, 2010 •
New York Inspector General Finds Potential Ethics Violations in Video Lottery Terminal Bidding Process
New York State Inspector General Joseph Fisch has released a report that criticizes New York State leaders for failing to fulfill their public duty in the January 2010 selection of Aqueduct Entertainment Group (AEG) to operate video lottery terminals at Aqueduct Racetrack in Queens. The 300-page report concludes that AEG should have been disqualified, and that the chaotic process resulting in AEG’s multi-billion dollar award was a “political free-for-all” marked by unfair advantages and more than $100,000 in campaign donations.
The report found that Governor Paterson, Senate Democratic Conference Leader Sampson, Senate President Pro Tempore Smith, and Assembly Speaker Silver each contributed to the multi-million dollar debacle. The report strongly recommends that the bidding process used to select AEG never be repeated and that New York State impose stringent procurement restrictions on all major contracts to ensure that they are competitive, transparent and fair.
The Inspector General’s Office is forwarding the report to United States Attorney and New York County District Attorney, for appropriate action and referring Senators Sampson and Smith to the Legislative Ethics Commission.
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