Internal review spurs Democrats' calls for investigation of Scott Walker's WEDC

[riversedge]

Source: The Capital Times




11 hours ago • By Jessie Opoien | The Capital Times


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Gov. Scott Walker's job creation agency failed to review a loan to a company that has since defaulted.


In the wake of news that Gov. Scott Walker's flagship economic development agency has given away more than two dozen awards without proper review, Democratic legislators are once again calling for an investigation of the Wisconsin Economic Development Corporation.

The agency released an internal review on Friday reporting 27 awards totaling $124.4 million that were made with no formal staff review, between July 2011 and June 2013. Included in those awards was an unsecured $500,000 loan to the since-dissolved Building Committee Inc., which was not repaid — even as the company was collapsing.

The loan was given after BCI owner William Minahan donated the maximum $10,000 to Walker's campaign.

Walker called for the loan program to be phased out shortly after the state released records related to BCI's loan in May.

"It’s concerning that Gov. Walker and Republican legislative leaders remain silent as this scandal continues to worsen," state Sen. Jennifer Shilling, D-La Crosse, said in a statement. "The latest round of records prove that dozens of loans were rushed through the approval process by top administration officials without proper oversight. I’ve seen lemonade stands with better financial safeguards in place. We should be holding Gov. Walker’s WEDC to higher standards.".............


Read more: http://host.madison.com/news/local/govt-and-politics/election-matters/internal-review-spurs-democrats-calls-for-investigation-of-scott-walker/article_e0c1d7ee-c504-5355-b4b3-e9d2c77cf972.html#ixzz3dwXOT2OK

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Also see this DU link:


http://www.democraticunderground.com/10026891572


Chicago Tribune picks up big Walker corruption story w/ UPDATE
http://www.dailykos.com/story/2015/06/21/1395233/-Chicago-Tribune-picks-up-big-Walker-corruption-story

[riversedge]

1. Green Bay Progressive: Green Bay Senator Hansen Calls for Closure of WEDC

Another story about this issue.


Green Bay Senator Hansen Calls for Closure of WEDC
http://www.newiprogressive.com/index.php?option=com_content&view=article&id=5359%3Agreen-bay-senator-hansen-calls-for-closure-of-wedc&catid=38%3Athe-state-news&Itemid=56


Green Bay Senator Hansen Calls for Closure of WEDC


Written by GBP Staff
Monday, 22 June 2015 14:






Latest reports confirm WEDC officials failed to perform critical underwriting for $124.4 million in taxpayer supported loans it made to 27 companies. Provide confirmation WEDC has failed at predicted economic development and jobs creation.

MADISON - State Senator Dave Hansen (D-Green Bay) called for the closure of the troubled Wisconsin Economic Development Corporation (WEDC) today after it was revealed that WEDC officials failed to perform critical underwriting for $124.4 million in taxpayer supported loans it made to 27 companies.

WEDC was created in 2011 by Governor Scott Walker and majority legislative Republicans, replacing the former Department of Commerce as the primary agency responsible for economic development and jobs creation in Wisconsin. Since then, it has consistently failed to meet its goals in both.

Governor Walker said the creation of WEDC was central to his promise to create 250,000 jobs during his first term in office. However, according to a recent Milwaukee Journal Sentinel report, Wisconsin ranks 35th in the nation for job creation since Gov. Walker took office and ranks worst in the nation for new business creation. Reports also showed that Walker created just 129,131 new jobs in his first term, or 51.7 percent of his 250,000 jobs promise.

In addition, a series of non-partisan audits beginning in 2012 show WEDC lost track of $56 million worth of taxpayer funded loans and found that the agency lacked basic internal accounting controls. The quasi-public agency has also written off more than $7.6 million in loans, to include a $500,000 loan to a troubled company owned by a major donor to Walker’s campaign.

“WEDC has been an unmitigated disaster from the start. It has been one scandal after another, squandered millions of dollars and failed to produce any significant numbers of jobs,” said Hansen a longtime critic. “There is no way to justify its existence any longer. It is time to end WEDC. It is beyond repair and the taxpayers deserve better.”......




dave-hansen-gb

[Cosmic Dancer]

8. How did a guy like this win three elections for Gov in a purple state?

[Major Nikon]

2. Hmmm, a $10K investment with a $500K return

Not a bad deal unless you're a taxpayer

[murielm99]

3. The trouble is, he always skates.

No matter who tries, no matter how many times, he gets away with his dishonesty.

It goes back to college, or perhaps before that. Why did he really drop out, so close to graduation? Was he asked to leave or face expulsion? Look at his track record, look at what he has gotten away with doing to unions, his war on Madison and Milwaukee. Look at the recall.

I get so discouraged. How can we take him down?

[riversedge]

5. Wasn't it Ronny R. who was the the Teflon President--he is Walker's hero.

Correct me if I am wrong.

yes, very discouraging.

[Half-Century Man]

4. It is extremely difficult to see the WEDC as failing.

I think it operated exactly as planned.

The Department of Commerce was purposely infected with privatization and mutated into the WEDC, moving it away from state oversight. Freed from restraint, controlling slightly over 1/2 billion dollars of public funds (loans, grants, bonds, and tax credits), the governing board staffed with picked appointees, and the Chairmanship held by a very ambitious Teapublican governor.

The same governor who campaigned tirelessly for donations to the Wisconsin Club for Growth and other superpacs.

Some of those same donors getting loans or grants from the WEDC.
See the 5th section ( http://www.huffingtonpost.com/mary-bottari/privatization-fail-scott_b_7339010.html )

People carrying loans from the old DoC were hand picked to board positions on the WEDC, a direct conflict of interest.
http://www.bluecheddar.net/?p=32154


It is hard to see the WEDC as anything more than a rigged carnival game of "throw money in my bucket" for (public) FUN(ds) and profit.

[sybylla]

6. Exactly. A quid pro quo if ever there was one.

Not only did they enrich donors, but they also got to funnel tax dollars into their campaign accounts.

The problem is that while it appears to be "mismanaged," it doesn't yet appear to be prosecutable.

[Scuba]

7. Wanker's Economic Disaster Corporation is a slush fund for repaying donors. Period.

[Sunlei]

9. charge him with crimes for that secret webserver????