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Former New Jersey Casino Official Denies Allegations

ATLANTIC CITY, New Jersey – As reported by the Press of Atlantic City: "The former executive director of the Casino Reinvestment Development Authority scoffed Friday at allegations by the McGreevey administration of spending abuses and questionable accounting practices at the cash-rich state agency during his regime.

"James B. Kennedy, who headed the CRDA from 1994 to 2003, said there was no secrecy about the authority's spending practices and that senior members of Gov. James E. McGreevey's administration were aware of what was going on at all times.

"…Kennedy's comments came a day after a high-ranking administration official divulged to The Press of Atlantic City the findings of a state audit of the CRDA. The audit showed the authority diverted $170 million in redevelopment funds designated for the southern New Jersey region for projects in Atlantic City.

"Speaking on condition of anonymity, the administration official also said the CRDA disregarded its funding formula, had a $1.9 million shortfall in its operating budget and failed to properly track its project costs.

"…Strongly denying any wrongdoing, Kennedy said the authority's spending practices were completely legal and stemmed from three separate pieces of legislation in the past decade. The legislation allowed CRDA funds to be used for casino-hotel expansion projects and new retail and entertainment attractions in Atlantic City.

"…The CRDA oversees the spending of hundreds of millions of dollars in gaming revenue for housing projects and economic development in Atlantic City and other parts of the state. Most of its money goes for Atlantic City projects, but development funds also are designated for southern New Jersey and northern New Jersey…"

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