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FD-350Rev.5881 (Indicate page,name of newspaper, city and state.) NeNyork TiMes (Mount CEpping in Space Below) 3/23|99 Date: Edition: er AEJ Character) -HUj or N;0Q Classification: Submitting Office: Indexing: Audit of Apollo Management Is Expected This Week By TERRY PRISTIN The foundation has a 90-year lease A Iong-awaited audit of the non- to operate the state-owned theater on profit foundation that runs the Apollo 125th Street. But some state officials Theater is expected to be delivered say they could evict the foundation to the state by the end of the week, by showing that the theater manage- Pataki administration officials said ment had violated the terms of its yesterday. lease by failing to pass on a percent- The Daily News reported on Sun- age of its profits to the state and by day that Charles A. Gargano, the not taking proper care of the theater. chairman of the Empire State Devel- Mr. Rangel, however, denied that opment Corporation, the agency that the state was owed any money and ownsthe theater, had threatened to said that the theater was trying to begin eviction proceedings against raise enough money to replace the the foundation if the audit was not seats and air-conditioning system. -handed over by Friday. A lawsuit filed by the State Attor: By.yesterday, however, Mr. Gar- ney General's office accuses Mr. gano had softened his position, say- Rangel and five other members of ingthat he was confident that the the theater's board of failing to col- audit,which is being prepared by the lect more than $4 million owed to the accounting firm KPMG Peat Mar- Apollo by Inner City Broadcasting, wick, would be ready by the deadline, the company that produces the tele- making it unnecessary for his agen- vision program "It's Showtime at cy to seek an eviction. The chairman of the foundation, the Apollo." That company is run by Percy E. Representative Charles B.Rangel,a Sutton, a former Manhattan Borough Harlem Democrat, said that he planned to send copies of the audit to President and a close friend of Mr. State officials on Friday morning, Rangel. Mr.Rangel said he would step when his board.will hold a special meeting to review the findings. down if the audit showed any impro- Turning the historic theater over prieties."I promise to walk away to private management remains an from this whole thing if there's any- option if-the current management thing unprofessional or wrong that does not improve its performance, comes out in the, audit," he said. Mr.Gargano said. Referring to state officials, he "The bottom line is that we want it said,"All I'm asking in return is that SERALZED D to be operating at the highest levels they apologize to my community and A nonprofit foundation has a 90-yes lease to operate the Apoll. possiblehe said. to the board if they are wrong BI-SEWYORK FBI/DOJ