INDIANAPOLIS | Attorney General Greg Zoeller asked state lawmakers Monday to require organizations that have received casino money through local development agreements, including a controversial East Chicago corporation, open up their spending records for inspection.
"The public policy of greater transparency that applies to government should definitely also apply to the local development agreements," Zoeller said.
Local development agreements are letters that were signed between riverboat owners and city governments when gambling was legalized in Indiana that require casinos to pay a portion of their revenue to local governments.
In East Chicago, a slice of the city's LDA revenue used to go to East Chicago Second Century Inc., a for-profit real estate development corporation controlled by allies of former Mayor Robert Pastrick. Current Mayor George Pabey has since blocked distribution of LDA money to Second Century.
However, Second Century still refuses to disclose how it spent the more than $16 million dollars it received in casino revenue between 1997 and 2006.
That is inappropriate, said Zoeller, who has sued Second Century to get their spending records.
"Gaming has to be licensed by the state, and other gaming revenues flow back to the state, so it's a mystery why the Second Century board would be so secretive about how it uses gaming dollars," Zoeller said.
The Indiana Supreme Court ruled in April the attorney general's lawsuit seeking spending information can go forward. That case is pending in Marion County.
"Five years of litigation cost the taxpayers a lot of money. It's unnecessary if there's nothing to hide," said David Miller, a legislative liaison in the attorney general's office.
In the meantime, Zoeller said state lawmakers could simply approve a new law mandating disclosure of the information.
He proposed requiring the name, date, amount and purpose of every disbursement of more than $5,000 be reported to the attorney general's office and made public.
"I do think additional accounting and transparency go a long way to satisfy the public, as well as our office," Zoeller said.
