New York's inspector general said Thursday that top state legislative leaders and the governor's office angled for campaign contributions and political advantage when they awarded a lucrative video slot machine contract for Aqueduct racetrack to a consortium that was later disqualified.
The report was referred to U.S. Attorney's Office and the Manhattan District Attorney's Office.
Inspector General Joseph Fisch said the selection in January of Aqueduct Entertainment Group by Gov. David Paterson, Senate Democratic Conference leader John Sampson and Assembly Speaker Sheldon Silver followed a process that removed lobbying restrictions and let campaign cash flow to decision makers.
''This process was doomed from the start, and at each turn, our state leaders abdicated their public duty, failed to impose ethical restraints and focused on political gain at a cost of millions to New Yorkers,'' Fisch said. ''Unfortunately and shamefully, consideration of what was in the public's best interest, rather than the political interest of the decision makers, was a matter of militant indifference to them.''
According to the report, Senate leaders leaked an internal memo containing competitors' bid information to AEG, originally a low-ranked bidder, helping it move up. An assistant to Senate Secretary Angelo Aponte e-mailed the memo to AEG consultant Hank Sheinkopf and Aponte, when questioned, claimed not to recall why that was done. Sheinkopf invoked his Fifth Amendment right against self-incrimination in declining to answer.
Fisch was forwarding findings by his investigators, who subpoenaed documents and witnesses, to the prosecutors. He was also sending it to the state Legislative Ethics Commission to review the actions of Sampson, Aponte and Senate President Malcolm Smith.
The report questioned testimony given under oath to Fisch's investigators by several officials, including Sampson, Aponte and Senate Racing & Wagering Committee Chairman Eric Adams, who also pushed for AEG's selection, citing statements as doubtful in light of other information or ''straining credulity.''
Paterson spokesman Morgan Hook said they were reviewing the report, but added it was ''indisputable'' Paterson subsequently refashioned the selection process, leading to a new contractor who will likely be breaking ground next week after years of delay.
Sampson said he will continue an internal review that already led to recommendations for a lobbyist ban, prelicensing of bidders and other steps. ''Mistakes were made at various levels of government and we must collectively learn a lesson,'' he said.
Adams' spokesman David Lichtash said the senator was reviewing the report and will comment later.
Silver and Smith didn't immediately respond to requests for comment.
After AEG was disqualified, the contract to build and operate about 4,525 of the machines at the thoroughbred track in Queens was awarded to Genting New York LLC.
