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Contract Issue Could Delay Start of South Carolina Lottery

"The nine-member board was set to award the $7.5 million contract, the state's largest ever, to a Greenville advertising agency Thursday, but postponed the decision over concerns that part of the money would flow to an out-of-state firm.

"Rejecting the contract would cause the bidding process to begin anew, pushing lottery startup back to March and costing the commission $1 million a day in lost revenue, Commission Chairman John C.B. Smith said. Lottery sales are set to begin Jan. 7.

"…The commission met by telephone Thursday to award the advertising contract to the Erwin-Penland agency, the highest-ranked bidder among three finalists.

"The agency partnered with minority-owned ImagesUSA of Atlanta in making its bid but has since committed to work with at least one S.C.-based black-owned firm if it wins the contract.

"…Commission member Aretha Pigford of Columbia led the charge against awarding the contract to Erwin-Penland.

"`We can say we followed the right process, but I don't think the end result will be in the best interest of African-Americans of this state,' she said.

"…[Lottery Director Ernie Passailaigue] said delaying the contract would affect not only start-up and revenue, but could have an impact on leasing permanent office space and hiring as many as 100 field agents…"

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