By Dave Lucas
http://stream.publicbroadcasting.net/production/mp3/wamc/local-wamc-930502.mp3
Albany, NY – New York State Inspector General Joseph Fisch has released a report that criticizes the Governor's Office and state Legislative leaders for failing to fulfill their public duty in the January 2010 selection of Aqueduct Entertainment Group (AEG) to operate Video Lottery Terminals (VLTs) at Aqueduct Racetrack in Queens. Capital District Bureau Chief Dave Lucas was there...
The scathing 300-page report concludes that AEG should have been disregarded at the start, 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 Inspector General's office found that everybody dropped the ball: Governor Paterson's office ignored expert advice from the state Budget Director and Division of the Lottery to disregard AEG's bid. Senate leaders leaked an internal memo containing competitors' bid information to AEG, originally a low-ranked bidder, helping it move up. Caught up in the dysfunction: Governor Paterson's chauffeur-slash-bodyguard, David Johnson, who Fisch hints played an insider role.
The report found that Senator Sampson likely pressured AEG to include a New York City contractor in the deal before he would select AEG as the winner. It found Senator Malcolm Smith maintained a fa ade of recusal from the process but still advocated for AEG --- and that Assembly Speaker Silver believed AEG was not the best choice, yet failed to actively participate in the selection process. NYPIRG's Blair Horner says the IG's report "shows Albany at its worst.
The report strongly recommends that the "three men in a room" 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 contract to build and operate VLTs at the thoroughbred track in Queens was eventually awarded to Genting New York LLC. The Queens Chronicle reports the official groundbreaking ceremony to mark the beginning of work on the Aqueduct Racetrack redevelopment project is scheduled for October 28th at 11 a.m.