The Republican chair of the Michigan House Oversight Committee said Wednesday that he is stepping carefully in an inquiry into the state’s economic development agency to avoid interfering with a criminal investigation.
The Michigan attorney general’s office executed a search warrant recently at the Lansing office of the Michigan Economic Development Corporation. It is part of an investigation into possible misuse of a $20 million grant to a not-for-profit run by a politically connected former board member, Fay Beydoun. Among other things, Beydoun was a fundraiser for Governor Gretchen Whitmer, who named her to the MEDC board.
The House Oversight Committee also requested documents related to the grant. But Representative Jay DeBoyer (R-Clay Township), who chairs the panel, said he does not plan to ask for more for now.
“The problem is there is a current, active criminal investigation going on and we don’t want to do anything to screw that up,” he told Michigan Public Radio. “We don’t want to do something that could compromise that.”
Beydoun has defended the grant as funding projects aimed at bringing startups and international businesses to Michigan.
House Republicans have been vocal critics of the state’s economic incentive program. DeBoyer said the committee has enough information in hand right now to continue its work. He also said the committee’s focus is return on investment by the agency and possible changes to state policy to better use public resources.
“We’re then going to review that information and based on what we see from that information, we’ll make a decision on moving forward with continued requests for information, continued requests for maybe testimony,” said DeBoyer, adding he thinks it is not likely MEDC officials would agree to testify while the criminal investigation remains active.
The MEDC is challenging the search warrant used by the Attorney General’s office and wants the seized materials returned. A judge ruled against the agency, which has until Friday to file an appeal of the decision.
Editor's note: The Michigan Economic Development Corporation is among Michigan Public's corporate sponsors.
