Prepared by D.T. Carter and A. Moyle
The Coalition for Community Improvement (CCI) is a local action group which is sponsored by the Democratic Republican Party (DRP), the party that formed the previous territorial government. For the past two years, CCI has run a charity casino, the proceeds from which were to be used to support broad-based social issues. John Richards, C.A., M.T.G. (Member of Territorial Government), the DRP incumbent from Smallville, was the founder and manager of CCI.
During the course of a routine audit of the casino by government auditors, it was disclosed that only 9% of the net proceeds were being distributed to CCI, while the remainder was being paid directly to the DRP for party use, as it’s director’s saw fit. The new Territorial Gaming and Casino Act requires that 10% of net proceeds must be used for charitable purposes but there is a five-year phase-in period. The above was reported in the Smallville Sentinel, the local newspaper, in an article investigating several charities.
What action, if any, is called for in these circumstances.