More Conflict of Interest Reported in D.C. Sports Betting Deal
As if the story behind the no-bid contract for sports betting in the District of Columbia wasn’t bizarre enough, now we have what appears to be a case of nepotism that was connected to the vote that made Intralot the sole vendor. And some say, with a certain degree of sarcasm, that it is almost refreshing that the new development does not concern beleaguered D.C. Council member Jack Evans.
Why Is There More Conflict of Interest In The D.C. Sports Betting Deal?
The Washington Post has reported that the council member who cast the deciding vote on the matter – Kenyan McDuffie, who oddly enough had expressed skepticism about the unusual arrangement, which was closed to competitive bidding – is the cousin of the man who has been identified as a beneficiary of the sports gambling contract, to the tune of $3 million over a five-year period.
Keith McDuffie is a partner in a company called J.L. Terrell Construction, but that is not what is at issue. The problem is that, listed at the same address, is another entity, known as “Potomac Supply Company,” which, as an adjunct to the sports betting deal, will get the $3 million to provide commercial paper products in the role of a subcontractor.
Keith McDuffie listed as Potomac’s chief executive officer and principal contact
And when asked to submit detailed information about their vendors to the Council, Intralot had Keith McDuffie listed as Potomac’s chief executive officer and principal contact.
And where did Intralot get that kind of information? Well, from McDuffie himself.
Yes, this much is true, according to the Post’s report. Keith had made this communication, as per the request, directly to Emmanuel Bailey, an executive with the Greek-based Intralot who is the company’s main contact in the D.C. area with regard to the contract.
The official filing with the city lists one Okera Stewart as the owner of Potomac Supply. And while he admits that Keith McDuffie is “a childhood friend,” he insists that he has no financial interest in the company.
However, Keith sent the information about Potomac from his own email account. And Stewart’s explanation about that is flimsy at best, as he was having “technical problems” with his own email account. It is perhaps strange that in earlier versions of the Intralot proposal that came before the Council, during a period when Kenyan McDuffie was not a proponent of it, there was no mention of his cousin or Potomac Supply. But he shifted gears later.
Kenyan McDuffie has defended his vote on the council on the basis that the contract with Intralot is good for the city. But it is, in fact, the competitive bidding process that ideally ensures that residents of the district will get the best deal possible.
And it is important to note, as his cousin Keith and Okera Stewart were scrambling around for answers, that this issue of the possible conflict of interest wasn’t even addressed until the Post uncovered these documents.
Jack Evans, the most vocal champion of the no-bid contract with Intralot, was stripped of his position as chairman of the Committee on Finance and Revenue for the Council and is under investigation by both the Council and the Department of Justice. He is embroiled in conflicts of interest about Intralot because it turns out that Intralot’s lobbyist in Washington, William Jarvis, is the registered agent for Evans’ private consulting firm, and has also given legal advice on its contracts.
There is a Campaign Finance Reform Act, which will ban on political donations from companies looking for large government contracts. But that does not go into effect until November 2020, so it has no impact on what is going on here.
This quote, from the Editorial Board of the Washington Post, sums things up pretty well:
“D.C. has established a procurement system that is steeped in politics and parochialism, with the checkered history to show for it. The shock would come from an absence of questionable practices and preferential treatment.”
