By GARRETT BERGQUIST
WISH-TV | wishtv.com
Two key Democrats on Friday said a new audit of the Indiana Economic Development Corporation raises troubling questions about the IEDC’s operations.
An outside forensic audit of the IEDC commissioned by Gov. Mike Braun found IEDC employees frequently failed to report conflicts of interest or potential employment with companies that received large payouts from the IEDC. Auditors found a total of 30 entities in which an IEDC board member or employee had a conflict of interest between Jan. 1, 2022 and Dec. 31, 2024. In addition, auditors found donors to the Indiana Economic Development Foundation frequently received state or IEDC funding.
For example, Pure Development, Inc., the real estate developer for the LEAP District, received a total of $77 million from the IEDC during the review period and made a $25,000 donation to the IEDF in 2023. Most of the money Pure Development received went to subcontractors for the LEAP District. Company officials did not respond to News 8’s request for comment. Utility companies also were major donors to the IEDF.
Even before the audit was released, Braun already had replaced the entire IEDC Board and announced the IEDF would be shut down.
“The IEDC audit confirmed a need for increased transparency and accountability for how taxpayer money is spent,” Gov. Braun said. “My focus is on solutions and we are implementing new internal policies and controls to ensure full transparency in the use of taxpayer dollars. Indiana is a great place to do business and with these additional accountability and transparency measures in place, it is an even stronger place to live, work, and raise a family.”
Democrats on Friday said the audit findings and early actions by the Braun administration were a good start, but further investigation is needed. Rep. Ed DeLaney, D-Indianapolis, who serves on the State Budget Committee, said the audit failed to identify specific people, total amount of losses, or whether anyone was referred to the Indiana Ethics Commission or to the courts.
“Are they washing each other’s hands? Are they taking public money? I have no way to know. You’d have to look at the individual transactions,” DeLaney said. “If [utility companies are] selling electricity to the LEAP project up in Lebanon, well, that’s legit, I’m sure there’s an official price and I hope that we pay the right price for the right electricity, but is there something else going on? I have no way to know.”
DeLaney said he will ask legislative leadership to launch a formal probe into the IEDC’s functions. He said he also plans to pursue legislative fixes, such as new transparency requirements concerning donors to the IEDC. Sen. Fady Qaddoura, D-Indianapolis, who serves alongside DeLaney on the State Budget Committee, said he wants Attorney General Todd Rokita to review whether any criminal wrongdoing occurred, using the audit as a starting point. He said he also wants Rokita to see if he can recover any of the money the IEDC spent over the past three years.
Qaddoura said he took issue with the limited number of interviews investigators conducted and the fact that some financial information was not included.
“This is not a complete scope of work,” Qaddoura said. “The report acknowledges there is missing information. So, I encourage the governor and the current staff of the IEDC to work diligently to provide that information, if not for the audit firm, then at least for the attorney general.”
Rokita’s office told News 8 the attorney general has received Qaddoura’s request and is reviewing the report to see what further steps are needed, if any. Senate President pro tempore Rod Bray, R-Martinsville, indicated in a Friday afternoon statement he might be open to legislative changes.
“I commend Gov. Braun for ordering this audit,” State Sen. Bray said. “The legislature will be closely reviewing this report and will determine whether legislative action is needed to achieve more transparency and accountability. Transparency and accountability are of paramount importance when it comes to investing taxpayer dollars, and conflicts of interest need to be brought to light. The IEDC plays an important role in bringing jobs and capital investment to our state, and we need to ensure the IEDC is operating in a way that instills public trust.”
House Speaker Todd Huston’s office said Huston is also reviewing the report.
This story was originally published by WISH-TV at wishtv.com/news/politics/democrats-demand-legislative-probe-ag-investigation-following-iedc-audit.