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Minnesota Firm Outlines Lottery Ties3 February 2004MINNESOTA – As reported by the Minnesota Pioneer Press: "A St. Paul company that worked closely with the Minnesota Lottery and its late director is afraid a forthcoming legislative audit may misconstrue their relationship. "Jeff Denney, president and CEO of Media Rare, said the lottery is one of the few agencies in state government that is more like a business and is expected to turn a profit. As a result, the lottery's major sponsorship of Media Rare's bass fishing tour is in line with what major companies would do, even if the Legislative Auditor might disapprove. "…George Andersen, the only director the state lottery has had, worked late into the night with Denney and Media Rare Vice President Pete Stoddart on Jan. 22, reviewing the relationship between the lottery and the production and public relations company. Five days later, Andersen killed himself outside his home after a daylong meeting with auditors. "But others say the state lottery and quasi-public agencies like it — such as the anti-smoking agency created as a result of the multimillion-dollar settlement with the tobacco industry — are still government entities and must be run as such. "…The report, due out later this month, is expected to recommend some general tightening of the lottery's management practices and its relationships with vendors, including Media Rare. Sources have said that the audit will likely detail serious problems, but that it did not uncover criminal activity by Andersen or other lottery employees. "…Denney said he bought Media Rare in 2000, in part, because it listed the lottery as one of its major clients. For years, Media Rare has produced the 'Environmental Journal' television show and several radio programs. Most of the shows highlight environmental projects funded by lottery proceeds; others spotlight lottery winners…" |