DC Comics? Sports Commission's Spending Criticized By Pols
 | | Council Questions
Commission Spending | The DC Sports & Entertainment Commission "spent at least $216,200 on restaurant meals, catered parties, out-of-town travel and other entertainment" from February '99-August '02, and "such expenses more than doubled" after Robert Goldwater became the agency's Exec Dir in November '00, according to records cited by Koveleski & Asher of the WASHINGTON POST. The commission has also paid DC-based law firm Covington & Burling over $500,000 in legal fees since '01, a "departure from the practice of other District government agencies that are represented by in-house lawyers." The commission has also paid $144,000 since '01 to a PR firm for events promotion and community relations, "even though the agency has a salaried employee with similar duties." Additionally, the commission's cash reserves "have shrunk" from about $18M in late '00 to $3.4M at the end of last year, and it posted operating deficits of $5.3M in FY '01 and '02 and is "facing another deficit this fiscal year." But Goldwater said, "We feel that we are being responsible stewards of our assets and our funds. ... The commission has to balance operating in the business environment of the private sector and the government environment of the public sector. It is a challenge." Several DC councilmembers "criticized the commission's spending on entertainment and travel," saying that the spending "has not helped the District attract more high-profile events, which was Goldwater's mandate" from Mayor Anthony Williams. DC CFO Natwar Gandhi, an ex-officio member of the commission's board, indicated that "the depletion of its reserve funds has prompted him to conduct an audit of how that money has been used." Koveleski & Asher note some of the recent capital expenses "have been for improvements" at RFK Stadium, and about $6.2M was spent on two events "that turned out to be losing propositions," including the American Le Mans Series Washington Grand Prix. The commission also "suffered a setback last year when the Washington-Baltimore area failed in its bid to get the 2012 Summer Olympics." Several councilmembers said that "in light of the expenditures on travel and entertainment — and previous problems the council has had with the commission's lack of disclosure about spending on the Grand Prix race — it may be time to replace the commission's leadership." Councilmember Jim Graham: "They have displayed such poor judgment that I don't know how we can continue to have trust and confidence in their leadership." Councilmember Adrian Fenty added, "The commission is operating like Fortune 500 businessmen, but they are doing it with public dollars" (WASHINGTON POST, 4/22).
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