Indiana Governor Orders Probe and Audit of State Economic Development Agency

Indiana's economic development organization is currently facing an investigation.

On Thursday afternoon, at the Indiana Statehouse, Governor Mike Braun of Indiana reiterated his commitment to enhancing transparency in government operations. Indiana Economic Development Corporation By informing everyone that his office notified the state inspector general about "wrongdoing" and initiated a thorough review to assess how the organization along with its mysterious subsidiaries have utilized several hundred million dollars.

I have instructed the engagement of an independent forensic auditor for the IEDC and its related organizations," Braun informed journalists, raising fresh worries about the agency. "Whenever we uncover misconduct or even the hint of it, we report it to the inspector general. We are not jumping to conclusions. It is crucial that these matters be examined impartially first; only after such thorough review will we proceed with whatever necessary actions.

The IEDC has been allocated hundreds of millions of dollars with the aim of luring companies to the state. However, the organization is currently facing increased examination due to claims of undisclosed behind-the-scenes agreements and doubts regarding its financial situation.

A recent report by Hannah News Service has expressed worries regarding the internal operations of IEDC’s nonprofit foundation along with its venture capital wing known as Elevate Ventures. The report indicates that the governor’s forensic review is prompted by issues related to absent financial records, elevated management fees imposed by Elevate Ventures, potential conflicts of interest arising from transactions executed by Elevate Ventures personnel, as well as various worries stemming from insufficient openness within the agency and associated entities.

"The current allocations for Elevate Ventures have been put on hold," stated Indiana Commerce Secretary David Adams. Additionally, he informed 13News that spending restrictions have been imposed on the non-profit IEDC Foundation. This organization collects money from an undisclosed pool of corporate and individual contributors to finance economic development excursions for the governor and other state officials as well as various related events.

“Adams further stated, ‘We will introduce more transparency to this agency and its partners, which will ultimately strengthen our position as a whole.’”

The statements made by the commerce secretary and the governor follow over ten years since 13 Investigates initially uncovered questionable data and a absence of openness from the IEDIC.

13News’ yearslong investigations detailed how IEDC was taking credit for creating tens of thousands of jobs that never materialized. The reports showed abandoned factories, empty cornfields and deserted lots at many of the sites where IEDC and then-Gov. Mitch Daniels had claimed successful job-creation projects that, in reality, had never come to fruition.

The sequence of 13News investigations spotlighting IEDC’s skewed numbers and lack of transparency Ultimately, this led Governor Mike Pence to declare the establishment of a fresh IEDC transparency portal. However, 13 Investigates subsequently revealed that this initiative was largely cosmetic. 2014 13News investigation exposed how the so-called transparency portal regularly omitted, removed and redacted statistics and information about failed projects, continuing IEDC’s practice of withholding data from the public that would reflect poorly on the agency’s job-creation goals.

13 Investigations' reporting on the IEDA's secrecy prompted lawmakers - from both Republican and Democratic parties - to take action. demand more transparency From the state agency. Legislators have consistently proposed IEDC transparency bills since as early as 2012.

However, these attempts have consistently faced opposition from the legislative body, which initially exempted the IEDC from numerous state Open Records laws when the organization was established. Furthermore, lawmakers have enacted additional legislation permitting both the IEDC and related entities to maintain secrecy regarding their operations and financial expenditures.

On Thursday afternoon, 13News questioned Braun about whether approving such confidentiality was an error.

The governor stated, "It seems like they didn't perform adequately in this area." He further emphasized that legislators should have prioritized complete openness. "This was an error, since whenever there’s even a suggestion for greater transparency, you should lead with that approach," he added.

After selecting an independent auditing company, the IEDC leaders anticipate that the forensic audit will last from six to twelve months. As per Adams, the cost of this audit will be covered by the state organization under investigation.

The governor stated that he trusts his recent moves concerning IEDC, which include a new approach. executive order This requirement for the agency to publicly share its foundation’s IRS tax documents and additional details will enhance confidence in the organization.

We are heading towards increased openness," Braun stated. "Openness is crucial. It’s vital for effective governance and something that taxpayers have every right to expect.

Later that same afternoon, Christopher Day, the CEO of Elevate, issued the subsequent statement addressing the governor's announced audit:

Elevate Ventures came into existence 15 years back with the aim of supporting entrepreneurs and fostering innovation within Indiana via venture development activities and investment in venture capital. We remain committed to maintaining openness and look forward to taking part in the forensic audit mandated by the Governor. This step aims to rectify any inaccuracies and misconceptions spread anonymously.