We have sources telling the press that $450,000 of a $1,000,000 state grant to Northern Beef Packers for construction and equipment went straight into Richard Benda's pocket in early 2011 as a two-year advance salary for "loan monitoring."
We have Tony Venhuizen, policy advisor and thus far chief spokesman for Governor Dennis Daugaard on the NBP/EB-5/GOED scandal, now telling us that Northern Beef Packers violated no state law in diverting this money to Benda and SDRC, Inc., the state-contracted private agency newly employing him on his exit from state government:
State officials have concluded that Northern Beef didn’t violate state laws by paying $550,000 to SDRC.
“Most Future Fund payments, including the one to NBP, are issued on a reimbursement basis,” Venhuizen said in an email response to a reporter’s questions.
“Accordingly, proof of compliance with the conditions for payment — such as expenditure of funds by the grant recipient — must be provided before the funds were distributed.
“In the case of the $1,000,000 grant to NBP, proof of expenditure was provided to GOED before the grant was disbursed,” he said [Bob Mercer, "State Can't Recoup $550K of Grant," Aberdeen American News, 2013.12.14].
Beyond the legality of this diversion is the question of the wisdom of the grant from which the diversion took place. Rewind to December 8, 2010, the day lame-duck Governor Marion Michael Rounds signed off on the million dollars that turned into Richard Benda's salary. Northern Beef Packers was two years behind schedule. It was bleeding money. What was Richard Benda telling Mike Rounds NBP would do with that money? If NBP had the cash to build what it had already built, why reimburse them? Why continue to pay Richard Benda's salary to monitor loans? (And who, by the way, was monitoring those loans during the construction that had already taken place since the first infusion of EB-5 money at the beginning of the project?) What benefit did the state stand to gain from giving that money to NBP to pay Richard Benda, especially when the state itself was facing a $127 million deficit?
One more question to mull this afternoon: NBP gave Benda $450,000 for a two-year loan-monitoring salary. We still haven't accounted for another $100,000 that was diverted from the state's grant to loan monitoring funds. Who got the other $100,000?
The RCJ editorial board is excoriating Marty and now accusing him of making stuff up:
http://rapidcityjournal.com/news/opinion/editorial-attorney-general-making-up-rules/article_fbbfdb77-ad94-561c-85c7-7d2b7f7c1312.html
This also begs the question: if Richard Benda conspired to wrongfully pay himself $450,000 of the $1 million state grant, exactly where is and how much is left of that $450,000? Will we ever get that back, along with the mysterious missing $100,000?
Maybe the $100,000 was used to buy an insurance policy...just a thought. It would be interesting to see where and who NBP and SDRC spent their money on professional services.
When I grow up, I want to be a "loan monitor" for the state or Northern Beef Packers.
It is no wonder NBP failed, with everyone involved getting paid off before the plant was in operation. Who in the hell does business like that?
Who in the hell does business like that?
Apparently republican government.
Dear reporter, I am a LP6 investor for the NBP. can you give me your email and phone contact. I will send you more shocking information and documents. David
That every single member of the Legislature isn't demanding an audit is amazing to me.
Curious who will emerge as front-runner after Marion Rounds pulls out.
David,
You can email your documents to me at Bobmercer1@aol.com (that's Bobmercer with a numeral one).
WHOA!
Can't wait for what David has to say.