Posted on 07/24/2015 7:34:42 AM PDT by conservativejoy
In Wisconsin, more trouble than jobs result from WEDC
By Jeff Horwitz Associated Press Posted: 07/21/2015 12:01:00 A.M. CDT
As Gov. Scott Walker begins his presidential campaign, he is confronting a stream of embarrassing revelations from a jobs agency once billed as the centerpiece of his plan to bring 250,000 jobs to Wisconsin.
Walker created the Wisconsin Economic Development Corporation in response to what he described as an economic emergency when he took office in 2011. As the agency's chairman, Walker appointed its top officials and six members of its 15-person board.
Among its early awards: $1.2 million in grants and loans for a company that said it could turn dirty plastic forks and ketchup-stained napkins into jobs. The company, Green Box NA Green Bay LLC, said its world-changing technology would produce recycled products, electricity and even diesel fuel from fast-food waste. It promised to employ 116 people.
But Walker's agency appears not to have looked adequately into Green Box. Company founder Ron Van Den Heuvel owed millions of dollars in legal judgments to banks, business partners, state tax officials and even a jeweler. Patents it said it owned are listed as belonging to other entities, according to the U.S. Patent and Trademark Office.
Four years later, Green Box is in court-ordered receivership. The company's attorney reportedly told a court that sheriff's deputies have seized five truckloads of documents from its offices as part of an investigation.
Walker's economic development agency is in disarray amid allegations of botched underwriting, ineffectiveness and favoritism.
"It just keeps getting worse," said Peter Barca, a Democratic assemblyman and minority leader who sits on the agency's board. "Never in my wildest imagination would it occur to me that WEDC would give out loans with so little oversight."
A spokeswoman for the governor, Laurel Patrick, disputed that the agency had gone awry under his watch.
"There have obviously been lessons learned along the way," Patrick wrote. But she credited Walker with creating an agency that "could more effectively focus on spurring economic development and job growth."
The Wisconsin Economic Development Agency arose out of Walker's 2010 campaign pledge to abolish the state's Commerce Department. But staff bolted during the new agency's transition out of state government, and the new agency lost track of $8 million in overdue loans. A 2013 state audit found that the agency routinely failed to adhere to its own rules or state law when awarding cash to businesses.
Internal emails and interviews with former employees reveal continued struggles to keep track of basic paperwork or push back on questionable award applications.
The handling of the Green Box loan suggests continued problems. As recently as February, the economic development agency considered awarding Green Box additional incentives.
Green Box initially said that it was in good standing with the state before acknowledging the litigation. It said the agency's lawsuit is meritless. Its founder offered a tour of a paper plant in eastern Wisconsin and documents verifying its technology, but the Associated Press declined after Green Box failed to show it owned the plant and required AP to sign a confidentiality agreement.
Other development projects have come under scrutiny for political ties, with major Walker donors receiving handsome payouts.
In one instance, top Walker aides lobbied the agency to give a $500,000 deal to a troubled, high-risk company owned by a Walker donor. First reported by the Wisconsin State Journal, the ill-fated $500,000 loan was made to construction company Building Committee Inc., whose owner, William Minahan, gave Walker's campaign $10,000 one day before the 2010 election. Walker appointees pushed the agency to give Minahan even more money -- even after the agency learned that Minahan had pledged agency funds to pay for a lease on a Maserati sports car. The company defaulted on the loan from the state.
Walker's office has said the governor did not know about the agency's efforts on behalf of Minahan's company.
Uproar over the recent audit and the details of the troubled loan to Building Committee Inc. has cast a shadow over the development agency's future.
But Walker appointees and allies -- who dominate the agency's board -- say that the agency's troubles are now mostly behind it.
Regarding the Green Box loan, "I can't defend it, I won't defend it," said board member Ray Dreger, a Walker appointee. But though the agency "certainly is an effort in progress," Dreger credits Walker with having led it in the right direction.
"He's been very active. He's had the hands on," Dreger said. But he added that as far as the administration of the agency, "of course, he's really not involved."
Until June, Walker was the Chairman of the WEDC agency he created. The legislature removed him from that position after an official Audit revealed loans that were not paid being given to companies with no review. No review was made as to whether the companies qualified to receive them, and there was no accountability as to jobs created.
Many of the companies receiving funds outsourced jobs over seas. There have been more jobs lost than created. To date, at 124 million dollars is known to have gone to companies that did not qualify and who were not reviewed.
So, like Perry did in Texas, Walker used this as a vehicle to pay back donors...
“Wisconsin Economic Development Corporation” has ALL of the Hallmarks of “Crony Capitalism” to me. This once again PROVES the quite a few of our GOP-e “Free Marketeers” and really not so “Free Market” after all.
It sure looks like pay to play. They have already determined that at least 60% of the money went to Walker donors.
D.A. Ozanne has been assigned the case since the end of May to determine if there are to be criminal charges.
Ah, the liberal troll is busy again.
I was thinking Walker and Rubio would be allies long before Walker began to make overtures. I think they agree on many things, including amnesty.
Yes the conservativejoy is most assuredly a Walker hater and as you say a lib-troll under-bridge dweller ...
All of this is pretty small potatoes compared to what the Democrats do every day and every where. But, it provides a good opportunity for the Left to use conservatives to do their dirty work and take out another threat to Hillary. All they need to do is to encourage a cannibalistic feeding frenzy by our side and then walk to victory.
This is only a small part of the problems in Wisconsin. I think the debates are going to focus on some issues that are going to surprise a lot of people.
That statement reminds me of one scheme put forth in England during the South Sea Bubble: "A company for carrying on an undertaking of great advantage, but nobody to know what it is."
I could give you a long list of problems in Wisconsin, but it would only raise the hackles of Walker supporters here.
And you are certainly not the expert on what is going on in Wisconsin. I do understand that what you are is the volunteer opposition researcher for one of Walkers opponents and your work will be very useful for the Democrats. I'm sure that they will thank you for it and reward you appropriately.
Tell us what wonderful stuff your guy is doing and convince us that we should support him, if you can.
In the General/Chat forum, on a thread titled In Wisconsin More Trouble Than Jobs Result From WEDC, centurion316 wrote: addressing conservativejoy
“This is only a small part of the problems in Wisconsin.
And you are certainly not the expert on what is going on in Wisconsin. I do understand that what you are is the volunteer opposition researcher for one of Walkers opponents and your work will be very useful for the Democrats. I’m sure that they will thank you for it and reward you appropriately.
Tell us what wonderful stuff your guy is doing and convince us that we should support him, if you can.”
In an earlier post he claims to be supporting Cruz and Trump. Once he dumps on Cruz and goes for Trump as a terd party candidate we’ll know this Memphisite is a “The solution to polution is more government intrusion democrap party in name only” troll.
Well, you would be quite wrong. My current list of viable conservatives certainly include Cruz and Walker. My list used to include Rubio, but I think that he has fallen off the back. Like most folks, I like what Trump is saying, but beyond that is yet to be seen. Some others may emerge from the blatering crowd.
It’s certainly too early to select who can both defeat Hillary and carry a conservative agenda forward. Our problem, of course, has always been how to do both, just one or the other won’t work.
As for being a Democrap troll, look at some other posters. They are political hacks who are unwittingly doing the bidding of the Left. The Democrats are counting on our side beating each other to a pulp, so that no one emerges who can beat a very flawed Hillary.
All you have to do is check my posting history.
I research for my own benefit and recommend everyone do their own research, as well.
I will vote fro Cruz in the primary and will vote for Trump if he wins the nomination. I don’t live within a hundred miles of Memphis, Richard Edward.
‘Dumb sluts’ eat this stuff up. They’re stupid enough to live in the media’s world.
If they can't handle it, Tough Noogies. I read Walker's book and admired him for fighting all that B/S, but beyond that, don't know much about him.
What you mailed me should be posted.
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