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GOAC Holds Unannounced Discussion of EB-5 Scandal, Still Balking at Real Investigation

Bob Mercer brings us a surprise from Pierre: the Legislature's Government Operations and Audit Committee decided to talk about the GOED/EB-5/Benda scandal after all. The agenda GOAC issued last week made no mention of the Governor's Office of Economic Development or the EB-5 program, which the Legislature charged GOAC to investigate last winter. Mercer thus went off to cover the state Railroad Board meeting.

With the press away, someone somehow added EB-5 to the GOAC agenda. Rep. Susan Wismer tweeted that the committee decided to defer to the U.S. Attorney rather than issue subpoenas to get its own answers about SDRC Inc., the shady private for-profit corporation to which the state ceded its authority over EB-5 in 2009.

Mercer expresses clear disgruntlement at GOAC's failure to alert the public to this discussion:

Had news organizations received some advance notice that there would be an attempt to seek the subpoena, the matter likely would have been covered by a news reporter. I haven’t seen any indication yet this afternoon that a reporter was present or at least listening via the Internet live-stream from the meeting. I’ll see what more I can find either later today or Thursday.

There are several patterns developing on this matter in the committee that deserve a deeper, closer look [Bob Mercer, "Some Days There Aren't Reporters," Pure Pierre Politics, 2014.06.18].

Mercer does learn from GOAC chair Senator Larry Tidemann (R-7/Brookings) that Tidemann plans to speak with the attorney general about GOAC's subpoena power and have GOAC follow up on both the Governor's Office of Economic Development and the Governor's Future Fund. But hey, we were promised GOAC action on GOED and EB-5 back in February, and it still hasn't happened. We'll believe it when we see it.

6 Comments

  1. Michael B 2014.06.19

    So why did the legislature even bother to pass a resolution if it was going to be ignored anyway.

  2. 96 Tears 2014.06.19

    There are no news reporters in Pierre other than Mercer. He's smart, insightful, possesses unmatched institutional memory and is peerless in all the state's media for work ethic. Having said that, for every 15 spot-on news articles from his pen there looms one bizarro observation from the man. I blame that on isolation living in Pierre and watching the ranks of serious reporters thin out.

    As to the Benda/EB-5 Scandal, look for the heavy GOP majority in Pierre to minimize and whitewash the criminality of the affair. There needs to be two or three more Bob Mercers out there.

  3. caheidelberger Post author | 2014.06.19

    96, who will bankroll that #2 and #3?

  4. Tim 2014.06.19

    Cory, it would be nice if that Sioux Falls paper or that right leaning Rapid City paper would show some interest. RCJ just piggybacks on what Mercer writes, they never bother to send one of their own.

  5. Roger Cornelius 2014.06.19

    Tim, the Journal is disgusting in its coverage or lack thereof of any hard hitting political news, especially if that news challenges a Republican. Interestingly, the tea party characters think the Journal is too liberal, go figure.

    Legislative hearings with subpoena powers? Highly unlikely in an election year.

    One of things we need to do is watch Rounds cash flow and track every dollar. I suspect that if he reaches that magical $9 million, it will be laundered EB-5 money

  6. Tara Volesky 2014.06.20

    There needs to be a gubernatorial candidate debate on the EB-5 and Richard Benda issues. Each candidate needs to tell the voters what he or she will do about these scandals if elected governor. It's time to start the conversation.

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