Capitol Report
By State Representative, Leon D. Young
Leon D. Young
I came across an interesting article in last Sunday’s (September 6th) State Journal.
A key Republican lawmaker (State Representative Samantha Kerkman, R-Salem) intimated in an interview that “Fraud is fraud.
It doesn’t matter whether it’s against one program or another program.”
One could infer that her statement might be a vague reference to the fraudulent activity at the Wisconsin Economic Development Corp (WEDC), but not expressly stated. (Rep. Kerkman is the cochairwoman of a legislative committee that is set to review a recent state audit of this beleaguered agency this week.)
Back in May, a State Journal investigation revealed WEDC gave a $500,000 unsecured loan in 2011 to the now-defunct Milwaukee construction company called Building Committee Inc. at the urging of Gov. Scott Walker’s top aides.
The company never repaid the loan, and though state sued and won a money judgment, taxpayers have yet to recover a penny.
This same investigation revealed that the company falsely stated on its application that it hadn’t been sued in the previous five years.
In at least one other case, the agency gave $1.2 million to a company that misrepresented information on its initial application. And just as unsettling, a recent internal review found 28 total awards totaling $126 million between 2011 and 2013 that didn’t receive a formal review.
Let’s not forget that WEDC is the brain child of Scott Walker’s misguided administration and its rush to undercut the state in the name of promoting business investment.
The agency was created back in 2011 to replace the Department of Commerce.
The new agency’s mission: To give assistance (grant loans) to companies attempting to grow and employ more workers within the state of Wisconsin.
However, as its track record clear indicates, WEDC has failed miserably.
In June 2015, it was reported that in July 2012 Kohl’s received a 62.5 million dollar award to create 3,000 jobs in Wisconsin.
Kohl’s only created 473 jobs. Furthermore, in 2012, $18 million was awarded to Kestrel Aircraft which was expected to create 665 jobs, but only created 24, and $15 million went to Plexus Corp. to create 350 jobs, but created none.
As we have seen repeatedly, the Republican majority has no qualms about advancing legislation to create criminal penalties for fraud in other areas of government: intentional unemployment insurance fraud or public assistance fraud to mention a few.
However, when the specter of “corporate fraud/agency fraud” raises its ugly head, the GOP becomes conveniently silent.
This begs that obvious question: Why isn’t someone being prosecuted in the WEDC scandal?