Controversy
The Nevada Policy Research Institute uncovered fiscal mismanagement with the Las Vegas Convention and Visitors Authority, a public agency in Las Vegas which is funded by visitor-paid room tax dollars. According to NPRI's investigation the LVCVA entered into a 10 year no-bid contract with R&R, a marketing firm, where R&R overcharged the LVCVA and despite the LVCVA uncovering the over-billing management refused to seek repayment. The LVCVA also allowed R&R to approve its own expenses, and failed to question or oversee most of the expenses being billed to them. The contract with R&R is worth $87 million, including a $40 million advertising contract, which includes a commission for R&R, where the LVCVA cannot identify R&R's expenses. Public records show that Rossi Ralenkotter approved approximately $30,000 in spending that included multiple dinners with bottles of wine, veal, fillets, chocolate mousse dessert and a $25,000 donation to the National Jewish Medical and Research Center, a Denver-based hospital which was giving Mr. Ralenkotter an award that year. The documents also show that Mr. Ralenkotter used taxdollars to pay for limousine services and a tuxedo.
According to NPRI, the LVCVA is funded by the room tax ($220 million in revenue), taking in more money than the Clark County School District, and is also a state agency subject to state laws regarding employees, benefits, and travel expenses. According to the Las Vegas Convention and Visitors Authority the problems uncovered by NPRI's reports were already documented by an internal auditor and the problems have been addressed by management.
Read more about this topic: Las Vegas Convention And Visitors Authority
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