Adjust Text Size

FOR IMMEDIATE RELEASE
March 18, 2009
Back to Releases

- News Conference

Orie and Vereb Question Gaming Control Board's Travel Decisions While Requesting a 6 Percent Budget Increase

Bipartisan group of legislators call for strengthened travel accountability and reimbursement of travel expenses 

HARRISBURG – Sen. Jane Orie (R-Allegheny/Butler) and Rep. Mike Vereb (R-Montgomery) led a group of lawmakers today in demanding answers from the Pennsylvania Gaming Control Board (PGCB) regarding its travel expenses, namely trips to Italy and Las Vegas, after the governor imposed an out-of-state travel ban. Both legislators will introduce legislation to create a searchable database for all state travel.

"The arrogance that board members have shown in their continued out-of-state travel –  and at the taxpayers' expense – is indicative of the leadership of the board.  This board is out of touch with what they have been appointed to do, serve the people of Pennsylvania," Vereb said. "The continued abuse of their position is sickening and must come to an end."

In September 2008, Gov. Ed Rendell enacted an out-of-state travel ban for state employees.  Despite this executive decision, board members proceeded to attend conferences in Las Vegas and Rome, Italy, on the state's dime.

A recent investigative report by WTAE television (Channel 4) in Pittsburgh uncovered travel receipts from a board member that included reimbursements for dry cleaning and a tab at the pool bar while staying at a luxury, $400-a-night hotel in Rome.  It was also discovered that David Kwait, former director of the PGCB's Bureau of Investigation, went on a state-paid trip to a gaming conference in Las Vegas last fall after announcing his plans to retire.  Kwait now works for the law firm of Ruben & Aronson, LLP, located in Bethesda, MD; the firm represents MTR Gaming, which owns casinos in West Virginia and Erie.

Vereb questioned who really benefitted from Kwait's state-funded trip and demanded a refund of state dollars from the law firm, Kwait or the Gaming Board director who approved the travel.

Prior to the WTAE investigation, Vereb had requested all PGCB travel expenses for 2008.  That request was never fully answered by the board.

Added to the PGCB's out-of-control expenses, is the state's payment of three of the board members' vehicle leases, insurance and part of their mileage.

Orie also brought up the fact that on top of this extravagant spending, the PGCB has requested a 6 percent increase to their budget – an increase that might not be needed if their expenses were brought under control.

"The Gaming Board is one of the most expensive of its kind in the nation, and has asked for its budget to be increased," Orie said.  "And yet on the other hand, it wastes thousands of dollars on expensive, lavish, unnecessary out-of-state travel at a time when most Pennsylvanians are having a tough time making ends meet.  They should be held accountable."

"At a time when we're facing a $2.3 billion budget hole – and the Gaming Control Board continues to ask for more funding from the state's General Fund – I find it unconscionable that board members would yet again ask for more taxpayer money in next year's budget to fund their operations," Vereb said. "It's clear they cannot control their expenses and are asking the taxpayers to foot the bill."

The Senate and House Republicans have held several hearings on the issue of Pennsylvania's gaming industry and the integrity of the board.  Reform measures have been introduced in both chambers, but have been continually ignored by House Democrats and Rendell.

Orie and Vereb pledged House and Senate cooperation in making sure these much-needed changes are made to the PGCB.

CONTACT:

CAROL MARAVIC (717) 787-6725

CONTACT:

Mike Sarfert, msarfert@pasen.gov, (717) 787-6538