Braun orders investigation into IEDC, Elevate Ventures
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Gov. Mike Braun has ordered an independent forensic audit of the Indiana Economic Development Corporation.
The big picture: The IEDC is a quasi-government agency that works to bring new businesses to the state, managing initiatives including performance-based tax credits, workforce training grants and public infrastructure assistance.
- For years, it operated with little transparency by design — those who supported the IEDC said it was necessary to work in secrecy to land big deals.
Driving the news: Braun is calling for more transparency in the agency after reporting showed that related entities may have misspent public money and not filed legally required financial reports.
- The audit by an outside firm is expected to take between six and 12 months.
- IEDC funds are being used to pay for it.
Catch up quick: Hannah News Service published a report on the IEDC and its venture capital firm Elevate Ventures this week that raised the specter of potential self-dealing and conflicts of interest, detailed missing financial statements and asked questions about how the privately funded IEDC Foundation operated.
- Elevate Ventures is funded to the tune of $6 million annually.
The latest: While the audit is underway, all Elevate Ventures funds are frozen and the IEDC Foundation money will not be spent.
What they're saying: "The IEDC plays a critically important role in this state," said Commerce Secretary David Adams. "We are going to bring transparency to this agency and its partners, and it's only going to make us overall much stronger."
- Adams did not speculate about self-dealing among members of former Gov. Eric Holcomb's administration or IEDC officials.
The other side: "We will continue to operate with transparency and are eager to participate in the forensic audit as directed by the governor to correct the record on factual inaccuracies and misrepresentations made by anonymous sources," Elevate Ventures CEO Christopher Day said in a statement.
What's next: The firm conducting the forensic audit is expected to be hired in the next few weeks.
- "We're probably not going to do anything until we get all the information," Braun said.