Today's quote from the Wayback Machine comes from Sioux Falls reporter Peter Harriman, who in 2008 tagged a quote from South Dakota's EB-5 coordinator Joop Bollen with this uncomfortable heading:
Bollen leaves ethical considerations to others.
"The U.S. federal government implemented the program after considering the ethical issues," he says. "Was the U.S. going to miss out on the opportunity to create jobs for our own citizens and legal immigrants?" Bollen asks. "South Dakota could rehash the ethical issue, which the feds already felt comfortable with, while other states would walk away with the bacon" [emphasis mine; Peter Harriman, "Investors Trade Millions for Visas," that Sioux Falls paper, via ALIPAC.us, circa 2007].
As a special shoutout to eager reader DB, Harriman found Democratic Congresswoman Zoe Lofgren from California similarly brushing off the ethical concerns of letting rich foreigners buy their immigration papers:
Lofgren, chairman of the House Judiciary Committee's subcommittee on immigration, says when the EB-5 program was established, "Some people said, 'Is this really fair where people with a lot of money could obtain (permanent residency) status?' But the decision was made. Whether it is fair or not, it benefits America, and the point of the immigration system is to benefit the U.S." [Harriman, 2007]
Senators Thune and Johnson also pop into Harriman's article to say mostly the same thing. As long as we can make money, who cares about fairness? That amoral thinking, unfortunately, appears to have motivated the Congressional supporters of the EB-5 visa program, as well as the South Dakota officials and private money changers who have profited from it.
It is not just about fairness of who comes. But those who take this money have a responsibility to use it wisely. When Bollen said, it does not matter that the project failed since it brought money into the state, that was an excuse for not using the money to create jobs that lasted. It would be much better if it was invested in a business that succeeded and just because money came to South Dakota does not make it ok. Now investors realize that money that they send to South Dakota may not be invested well enough to either get a return or even to get back ten cents on the dollar. This was a big downgrade of our states reputation as a place to invest money. A cattle state can not even slaughter cattle profitably, that is real bad on our reputation as a business friendly state. We may be friendly but not profitable at what we are supposed to be good at.
It doesn't come to mind right off, but weren't there several polls in recent years that said South Dakota is one of the leading states do business in or has one the best business climates?
There are immigrants that come to America seeking employment that are more loyal and dedicated to doing a good job than those with big bucks determined to purchase citizenship.
And, more importantly, why do EB-5 proponents at the state and federal so lightly dismiss this program as good for our economy regardless of a record of failure, at least in South Dakota?
I'm guessing that EB-5 has done significant damage to potential ventures that could be sustainable. Will the state be able to attract future investors after such criminal activity.
GOED packaged the EB-5 program with a huge label on it saying "CORRUPTION LIES WITHIN"!
This issue has made me wonder if restrictions on alien admission to US can be made on the basis of religion, politics, etc since rights guaranteed in the US may not be relevant to acceptance or rejection for entry to the country even if such rights apply after setting foot here.
Actually Roger, I think you nail it perfectly. SD's "best business climates" means that ethical business practices regulations and expectations are similar to employee compensation:Low, low, low.
OH yes Roger, Bollen says it brought money into the state, But how many million dollars of south dakota tax payers money went into that program to get that e-b money into the state?
The program is not terrible, and over regulating it would put South Dakota at a burden. However not having any regulation or over site cost South Dakota when you have bankrupt programs, local investors losing money and state grants vanish cost SD way more in the long run
Joe,
Isn't it obvious to you that the state should have strong oversight regulations of programs involving investors and state money? If regulating these programs is a burden to the state, perhaps they shouldn't be involved at all.
In fact, since the state can't be trusted as this recent scandal has proven, it would be better served to have an outsider monitor these programs and transactions.
The only way this could worse for mike, is if were shown to have profited from Joop's shell game. He personally promoted NBP and the certified beef program. He directed state funding and oversaw the promotion of that and other eb-5 projects. He transitioned the program into SDRC allowing Joop and benda to presto chango millions into nothing. Forget if be did anything criminal. This was Mikes failed vision, failed leadership and failed oversight. And he wants us to send him to DC? No thanks. By the way Dennis, this all happened right under your nose too.
Excuse my typos
Well said Jim. That is the most important point in all of this. When you look at all of the failed programs that SD has been involved in under Mike Rounds in the guise of economic development, there are a lot of taxpayer dollars as well as time and effort of state employees involved. The first one that comes to mind is the Big Stone II coal burning power plant which held hearings several times with the PUC as well as other parts of State government, before being closed out by the MInnesota PUC. Another coal power plant by Basin Electric at Selby suffered the same fate. Then also there is the Hyperion coal burning power plant and oil refinery which went by the wayside. And of course the most agregious, other than the bankrupt Beef plant in Aberdeen, are the CAFO (concentrated animal feeding operations) dairy operations which put the death knell on any family operated smaller dairy operations in the State.
The State's former Ag Secretary, Larry Gabriel, spent 10s of thousands of State money advertising in foreign magazines to attract these operations to SD. At the time, many of the people in the eastern part of the state were protesting these operation because of the amount of water that they would use and the fact that they would pollute the Veblen and Sioux River aquifers as well as lakes, streams and wells. The State would hear none of our complaints and approved them anyway. The dairy operations at Veblen also went bankrupt.
A week or so ago, someone posted statistics on here showing that the amount of cattle for dairy had decreased by almost half while the amount of milk produced had increased. It also showed the number of dairy farms lost. At the time I question how that increased production could have occurred with such a drastic cut in the number of cows producing the milk. Dumb me, I talked to someone who said that is easy. Growth hormones. All of these things bad for our State and its environment approved by our State Government, make one wonder who our government is working for.
rollin porter
The GOED/EB-5 program did bring investment dollars into the state, but for how long? Some of it probably stayed in the bank accounts of the perpetrators while most likely went to those off shore bank accounts.
Did Rounds sell any of these failed projects insurance? His pudgy grubby little hands were on the money, guaranteed!
This post "Who cares about ethics!?" is the mantra of the Pat Powers corrupt wing of the SDGOP.
"Who cares about ethics" pity the politician who had their picture taken with Joop...yikes.
Disgusted Dakotan, do you know exactly how much South Dakota tax payer money was poured into these failed projects? Does anyone really know?
No Rounds supporter seems to care. Instead, they're having convulsions over Stace Nelson saying he wouldn't support Rounds. I can guarantee you, if it had been a Democrat governor that had had that much money disappear.......well, we all know Pat Powers would be ready for executions.
Jana, that photo of Rounds with Joop says it all.
I'm sure the travel vouchers weren't the only accounting "irregularities". Where did it all go, and how much was misappropriated? That's where it gets murky. How much eb5 money did Joop and Sveen keep, pay out or otherwise grift?
Double yikes! Just guessing there's more out there.
It may take awhile to sift through all of Mercer and others' questions, but I think the other victims here are the twins Trust and Truth.
What I learned today. Ethics is a four letter word.
The EB5 program seems to have been used to the benefit of a few industries and a few politicians and to put a number of SD farmers out of business.
The things that keep cafos going is the EB5 program, overuse of antibiotics, reliance on illegal labor and the SDDENR's refusal to update their regulations.
I talked to a guy who saw Benda this spring, said they were friends or the closest thing you could get to being a friend in Pierre when you are always around each other. This guy said usually they'd crack a few jokes laugh talk a little about business and then go their own way. Said this meeting was a little different, as Benda didn't think it was funny and looked almost sick to the stomach about the jokes about the NBP.
In the people I've talked to in the 2 days I've been back in the state, all indicate that there is a little more truth to the Rounds is thinking about exiting the Senate race then I ever believed from the Gordon Howie report. They said its a pretty popular rumor in Pierre. I've also heard that 2 of the GOP candidates have information to tie Rounds to this, but they are holding out in hopes that Rounds sticks in through March and gets his name on the ballot.
Whether any of this is true who knows.
The only thing I know is for a guy to kill himself over a few travel vouchers is extensive, now people killing themselves is an irrational thing to do anyways, but it seems even more irrational for that little of a thing. And if this guy did it, how many others did it?
Marty wants to defer to the Feds, but if this 550k is future fund money, I think that is then state money. He could look into that.