Legislative auditor to examine New Orleans Harrah’s books

Wednesday, Dec. 6, 2000 | 3:25 a.m.

The action overrode a 6-0 decision by the Legislative Audit Advisory Council not to order a review of the casino's books.

Legislative Auditor Dan Kyle said he received a call from Gov. Mike Foster's office Monday asking "what it would take for me to go into Harrah's" to study its finances.

Kyle said he told the administration that he would need calls from Senate President John Hainkel, R-New Orleans, and House Speaker Charles DeWitt, D-Lecompte.

"And those were forthcoming," Kyle said.

Kyle said his auditors began examining Harrah's financial records Tuesday and the casino was giving full cooperation.

On Thursday, the audit advisory panel refused to allow Kyle to audit the casino's books. State Treasurer John Kennedy had suggested an audit so state officials will not have to rely on Harrah's numbers during negotiations about a possible tax break.

"I think the Legislature made the right decision," Kennedy said.

The casino's owner, JCC Holding Co., has said that the casino will shut down March 31 unless the state lowers the gambling hall's $100 million minimum annual state tax.

Kyle said a rapid review of the casino's books over the next two weeks will cost about $15,000. Among the auditors' tasks will be determining a break-even point for the casino.