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Audit Committee Scrutinizes Troubled Economic Development Agency

WEDC Failed To Follow State Law On $124M In Loans, Audit Says

Richard Hurd (CC-BY)

Officials at Wisconsin’s embattled economic development agency told lawmakers that they’ve fixed problems that led to several questionable loans, though critics say it’s not the first time they’ve heard that claim.

Wednesday’s hearing on the Wisconsin Economic Development Corporation centered on a critical audit that found repeated instances where WEDC did not follow state laws when it awarded grants. It also came in the wake of news reports investigating questionable WEDC loans, including one that top aides to Gov. Scott Walker pushed for.

WEDC Chief Legal Counsel Hannah Renfro said the agency had improved since then, saying such things “wouldn’t happen today.”

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But Sen. Janet Bewley, D-Ashland, called the mistakes “massive”.

“Fool me once, fool me twice — I mean, this is the third time now that recommendations are being made by the audit committee,” she said. “And we’re being told, ‘Oh, we fixed it because we changed the policies.’ I mean, how many times is the audit committee supposed to hear that?”

Bewley said none of the loans would have gone through if WEDC had followed state statutes in the first place.

One Republican lawmaker on the committee defended the agency: Rep. John Nygren of Marinette told his colleagues that it’s important to remember many of the agency’s problems began with the state Department of Commerce. Walker transformed that agency into WEDC in 2011.

Editor’s Note: This article was originally an Associated Press story. It has since been updated with reporting by Wisconsin Public Radio.