TU: Jacksonville board wants to tighten SMG contract oversight

[Patricia M. McBride]

Jacksonville board wants to tighten SMG contract oversight

Committee wants more frequent examination of company performance.

Although no suggestion of wrong doing was made, this whistle blower group suggests "SMG needs stronger oversight and routine audits to avoid the financial mismanagements".  This is a long term contract for SMG who has the contract for the stadium, and the Taxation, Revenue and Utilization of Expenditures Commission feels although there is no evidence of abuse, this contract is ripe for abuse without more stingent safeguards and faults the city and not the company for any issue of mismanagement as stated below in the newspaper quote.

"But Paul Harden, an attorney who represents SMG, said "every single item that has been mentioned" is already addressed within SMG's contract or city law.

Downey said his former company wanted to improperly list some expenses to make $80,000 off a concession subcontract of Savor, an SMG food-services business.

Having the same company hold a contract and subcontracts under it invites conflicts of interest, Benwick argued.

"If SMG was trying to hit their numbers ... Savor could potentially profit at the city's expense," he said.

But Benwick said he wasn't faulting the company: "I think this is an issue of mismanagement by the city."

Read more at Jacksonville.com: http://jacksonville.com/news/metro/2011-06-16/story/jacksonville-bo...