Braun signs contract for an IEDC audit costing taxpayers up to $800,000. Here's why
The state-funded entity has been increasingly maligned by Republicans for its lack of transparency, culminating in Braun announcing that he wants to investigate the quasi-governmental entity for possible impropriety.
The IEDC has been by funded by taxpayers since its 2005 founding under Gov. Mitch Daniels' administration but has faced criticism over the years for its sometimes-opaque practices.
Braun's administration has already frozen the funds of IEDC affiliate Elevate Ventures, a nonprofit investment entity that's doled out nearly $200 million to Indiana startups, while the audit takes place. He also earlier this year signed an executive order that will result in increased financial transparency over entities like the related Indiana Economic Development Foundation, which has funded international travel for past governors.
Braun's Secretary of Commerce David Adams signed a one-year contract earlier this week with Washington, D.C.-based firm FTI Consulting Inc.
The firm will be paid an hourly rate of $595 for its work up to $800,000, unless the contract is eventually renewed.
The firm will provide "forensic review and support services" for the state, according to a letter from the firm, which has locations worldwide including an office on the north side of Indianapolis near Carmel.
Braun previously has stopped short of accusing anyone specifically of wrongdoing, but has said "transparency is essential." A Hannah News Service story published in April raised several issues, including IEDC's alleged struggles to get financial and investment data from the Elevate Ventures affiliate.
"We are not rushing to any conclusions," Braun said on April 24. "We want to make sure things are reviewed independently."
Elevate Ventures' CEO Toph Day, meanwhile, has defended the organization and has said it is "eager to participate in the forensic audit."
Contact senior government accountability reporter Hayleigh Colombo at hcolombo@indystar.com. Sign up for our free weekly politics newsletter, Checks & Balances, by IndyStar political and government reporters.
This article originally appeared on Indianapolis Star: Braun signs contract for IEDC audit costing taxpayers up to $800,000
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