CRDA Under Investigation

As reported by the Press of Atlantic City: "The Casino Reinvestment Development Authority is one of about 50 independent state authorities that will be reviewed by the Office of the Inspector General under a program begun last year by former Gov. Richard J. Codey.

"As part of that effort, inspectors are pouring over stacks of CRDA records, including financial reports, accounting procedures and payments to vendors in the past five years. They will also review the CRDA's organizational structure, jobs, salaries and the responsibilities of the board members.

"Vincent Funelas, a spokesman for Inspector General Mary Jane Cooper, declined to comment Tuesday other than to confirm that inspectors are currently at the CRDA.

" 'We can't comment on any pending or ongoing investigations. But it's no secret that we're there,' Funelas said.

"Thomas D. Carver, the former state labor commissioner who took over as the CRDA's new executive director in October, was out of the office Tuesday and unavailable for comment.

"Calling for stronger ethics reforms in state government, Codey issued an executive order last June demanding broader oversight of the state authorities' financial practices to make them more accountable to taxpayers.

"The program continues under new Gov. Jon S. Corzine, who noted during his campaign that a lack of oversight has allowed some authorities to be used as "convenient places to dole out patronage jobs and lucrative contracts while evading public scrutiny."

"Following its review of the authorities, the Office of the Inspector General will issue recommendations to bring all of the agencies under the same financial and accounting procedures. Funelas could not say when the report will be completed.

"Government authorities provide some of the state's most important public services. They oversee such things as school construction, transportation, utility plants, ports, convention centers and sports stadiums. Among them, the CRDA is unique because it is the only authority that uses revenue from Atlantic City's casino industry for housing projects and economic development.

"Casinos pay 1.25 percent of their gross revenues for CRDA projects in Atlantic City and other areas of the state.

"The CRDA controls the spending of hundreds of millions of dollars, making it one of the state's wealthiest authorities.

"In his first four months as executive director, Carver has reshuffled the CRDA's staff by firing the director of economic development and promoting other executives to top jobs.

"The CRDA's employees, job descriptions, salaries, benefits and the use of authority cars will all be scrutinized by state inspectors in their financial review.