While politicians often give lip service to the concepts of transparency and accountability, both qualities are too rare among holders of elected office. So when Indiana Gov. Mike Braun signed an executive order this month that a state-affiliated nonprofit would have to provide transparency and accountability, we took notice.
Braun’s order stated the Indiana Economic Development Foundation, which aids economic development efforts, must disclose its past and future funders. The IEDF works in conjunction with the Indiana Economic Development Corp. Previously, the foundation did provide donor details, however in recent years it refused, according to a report by the Indiana Capital Chronicle.
The IEDC, a quasi-public state agency, was started in 2005 under then-Gov. Mitch Daniels when he reorganized Indiana’s Department of Commerce and moved its responsibilities to the group. When Mike Pence was elected governor, the group was run much the same as it was under Daniels, according to Dr. Michael Hicks, director of the Center for Business and Economic Research at Ball State University.
It was when Eric Holcomb took office as governor that alleged issues occurred with the IEDC.
According to Hicks, that’s when the group turned into a real estate development company and pushed “the state’s economic development policies back into the 1970s.”
Last week, Braun signed the executive order regarding funding disclosures after journalists from Indiana Legislative Insight, a publication focused on state politics, released a shocking report detailing allegations of conflicts of interest impacting millions of dollars in economic development deals, self-dealing and unreported side jobs for IEDC staff members.
In addition, Braun announced April 24 that funding has been frozen for Elevate Ventures, an economic development affiliate and venture capital firm, amid allegations of questionable staff compensation, failure to return unspent funds to Indiana’s general fund and imprecise accounting.
While Braun made sure to note that these issues didn’t happen under his watch, he was quick to say officials were not “rushing to any conclusions,” according to a report by Indiana Capital Chronicle’s Whitney Downard.
On Thursday, the results of that audit showed the IEDF spent $13.2 million across six years, $10.9 million of which went to travel, meals and entertainment.
When he announced the audit of the IEDC and its affiliated entities, Braun added, “Where we have found impropriety — or even the appearance of it — we have reported it to the inspector general.”
While we applaud the hard work of the journalistwho brought the issues to light, we also have to applaud Braun for taking quick action against alleged wrongdoing and instigating an audit to look into possible improprieties.
It appears the IEDC is not the same organization it was when first started in the early 2000s, and has strayed from its original purpose. Hopefully, this is the first step in correcting wrongdoings, holding those responsible accountable and regaining control of this entity.
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