Audit finds Scott Walker’s job creation agency repeatedly broke law

The two-year old Wisconsin Economic Development Corp. was strongly criticized in a state audit

Topics: Scott Walker, Wisconsin, audit, Republicans, Jobs,

Audit finds Scott Walker's job creation agency repeatedly broke lawGov. Scott Walker, R-Wis.(Credit: AP Photo/Charles Rex Arbogast)

Gov. Scott Walker’s job creation agency has been plagued by repeated law-breaking and mismanagement, according to an audit released by the state’s non-partisan Legislative Audit Bureau.

In a report that was almost 100 pages, the Bureau sharply criticized the Wisconsin Economic Development Corp., created in 2011 by Walker and the state legislature, and called for much more oversight.

From the Associated Press:

The audit faulted WEDC for not having sufficient policies to administer its $520 million worth of grant, loan and tax credit programs effectively, including some policies required by law. It awarded $80 million in its first year.

The agency did not consistently follow the law or existing policies when making awards, and had no policies for determining how to handle delinquent loan amounts, the audit said.

It lacked invoices or other contractually required documentation showing authorized costs for seven of 29 grants reviewed, the audit said. Four contracts gave $906,000 total in tax credits for job creation and employee training that had already occurred, the audit said. Twelve of 14 recipients of grant and loan contracts worth at least $100,000 did not submit verified financial statements as required by law, the audit found.

“This audit dates back to 2011 and largely reflects information that WEDC has known for some time,” a Walker spokesman said in a statement. “This new agency has taken proactive and positive measures to address its issues, and Governor Walker is confident in the direction of WEDC as an agency that aims to promote job creation and economic growth for Wisconsin.”

Jillian Rayfield is an Assistant News Editor for Salon, focusing on politics. Follow her on Twitter at @jillrayfield or email her at jrayfield@salon.com.

Next Article

Related Stories

Featured Slide Shows

The week in 10 pics

close X
  • Share on Twitter
  • Share on Facebook
  • Thumbnails
  • Fullscreen
  • 1 of 11
  • This photo. President Barack Obama has a laugh during the unveiling of the George W. Bush Presidential Center in Dallas, Tx., Thursday. Former first lady Barbara Bush, who candidly admitted this week we've had enough Bushes in the White House, is unamused.
    Reuters/Jason Reed

  • Rescue workers converge Wednesday in Savar, Bangladesh, where the collapse of a garment building killed more than 300. Factory owners had ignored police orders to vacate the work site the day before.
    AP/A.M. Ahad

  • Police gather Wednesday at the Massachusetts Institute of Technology to honor campus officer Sean Collier, who was allegedly killed in a shootout with the Boston Marathon bombing suspects last week.
    AP/Elise Amendola

  • Police tape closes the site of a car bomb that targeted the French embassy in Libya Tuesday. The explosion wounded two French guards and caused extensive damage to Tripoli's upscale al-Andalus neighborhood.
    AP/Abdul Majeed Forjani

  • Protestors rage outside the residence of Indian Prime Minister Manmohan Singh Sunday following the rape of a 5-year-old girl in New Delhi. The girl was allegedly kidnapped and tortured before being abandoned in a locked room for two days.
    AP/Manish Swarup

  • Clarksville, Mo., residents sit in a life boat Monday after a Mississippi River flooding, the 13th worst on record.
    AP/Jeff Roberson

  • Workers pause Wednesday for a memorial service at the site of the West, Tx., fertilizer plant explosion, which killed 14 people and left a crater more than 90 feet wide.
    AP/The San Antonio Express-News, Tom Reel

  • Aerial footage of the devastation following a 7.0 magnitude earthquake in China's Sichuan province last Saturday. At least 180 people were killed and as many as 11,000 injured in the quake.
    AP/Liu Yinghua

  • On Wednesday, Hazmat-suited federal authorities search a martial arts studio in Tupelo, Miss., once operated by Everett Dutschke, the newest lead in the increasingly twisty ricin case. Last week, President Barack Obama, Sen. Roger Wicker, R.-Miss., and a Mississippi judge were each sent letters laced with the deadly poison.
    AP/Rogelio V. Solis

  • The lighting of Freedom Hall at the George W. Bush Presidential Center Thursday is celebrated with (what else but) red, white and blue fireworks.
    AP/David J. Phillip

  • Recent Slide Shows

  • Share on Twitter
  • Share on Facebook
  • Thumbnails
  • Fullscreen
  • 1 of 11

Comments

7 Comments

Comment Preview

Your name will appear as username ( profile | log out )

You may use these HTML tags and attributes: <a href=""> <b> <em> <strong> <i> <blockquote>