If a private bank behaved like Walker's failed WEDC...
Auditors would have been all over it beginning a couple of years ago, and after today's findings, the doors would be locked and charges would be in preparation.
No bank having to follow state or federal laws and lending practices would have been allowed to stay open.
Bring in the feds, as WEDC is recklessly handing out federal tax credits, among other revenues belonging to the people.
No bank having to follow state or federal laws and lending practices would have been allowed to stay open.
Bring in the feds, as WEDC is recklessly handing out federal tax credits, among other revenues belonging to the people.
6 comments:
The Feds have an even bigger problem, check out Rachel Maddow Show yesterday. They have been in a three to three tie in everything since the Repubs took over the Senate. It will now be up to the courts to stop this train wreck
I saw the show. Other media have covered that, too. The FEC is hamstrung, by design.
What exactly is the WEDC, and to which federal regulator(s) does it answer? (Yes, I know it's a slush fund, but what is its legal/technical status?)
It refers to itself as a "public-private corporation" or "entity" or "partnership."
State Statutes call it "an authority, which is a public body corporate and politic," but make clear that it is NOT a state agency.
Is it a non-profit corporation, like a 501(c)(3)? Does the IRS hold any cards here? It doesn't appear to be registered with the state DFI as any sort of "corporation."
It makes loans and has bonding authority, so is it a Financial Institution? Would the SEC or CFPB have any jurisdiction over it?
The WEDC Board can "sue and be sued" [ch. 238.04(4)], and it has obviously and repeatedly violated a whole slew of stuff in ch. 238, so could any WI resident file a civil suit to bring them into compliance (and do some interesting discovery)?
Ch. 238.06 states that the state is not "liable for any debt, obligation, act, or omission of the corporation." So, could the state DOR, for example, decide that some of these non-compliant, un-vetted tax credits are no longer valid? Or, could a third party challenge such tax credits before DOR honors them?
Why would Walker continue to head up this "so-called" state agency where its contracts with grant and loan recipients have not complied with state law? How will he be insulated when the hammer does drop on this agency? Why is no one demanding proof that recipients are actually creating or retaining jobs. As many others keep saying, it is nothing more than a slush fund of taxpayer dollars being tossed out to people who do not deserve the funds. Why is Walker always involved in these types of sleazy activities? Why can't they provide these services legally. Why aren't they keeping track of the money that goes out and/or comes in? Don't they have enough people to do the work, or do they just not care one way or the other? If the latter is the case, then what can we do to get rid of the agency?
A long time ago I was appointed to lead a similar but much smaller "state authority" by Governor Tony Earl. The Wisconsin Legislature created the Wisconsin Community Development Authority to create community based jobs. I will tell you that the objectives of WEDC can be carried out if our Governor had appointed people with integrity and intelligence. Apparently he did not.
He doesn't seem to know people like that . . . and didn't Walker himself say you can judge a person by the company they keep?
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