Mike Rounds posts a new ad, much like his last one, trying to deflect discussion of the very real corruption he countenanced in his Office of Economic Development:
Rounds again avoids the issues by saying South Dakotans "know better" than to listen to "negative advertising." Rounds's dodge also dismisses the latest ad from Every Voice Action calling Rounds to account for his costly cronyism as an attack from "third-party interests from outside our state." This complaint comes as the GOP spin machine cheers John Thune's daughter for her recognition as a bright young star working for the RiNO RightNOW Women PAC, a third-party interest from outside our state.
Meanwhile Democratic Senate candidate Rick Weiland talks to us directly that he values the hard work of South Dakotans, while big-money candidates like Mike Rounds make it harder for working folks to get ahead:
Sure, it's "negative" to say that big-money interests are only interested in putting more money in their pockets and not in making sure that working folks can put food on the table, get their kids through college, and look forward to a secure retirement. But it's also true. And South Dakotans should know better than to fall for Mike Rounds's whiny attempt to keep us from seeing and voting on the truth.
The ad also conveniently overlooks the fact that the $120 million in set-up fees for EB-5 investors was diverted from South Dakota to SDRC, inc. (http://cis.org/north/south-dakota-loses-120-million-eb-5-funds) via the Bollen/Rounds gambit. Conspiracy or ineptitude, it doesn't matter. I would say that money has indeed "gone missing," and that this ad is total cr*p.
What Mike says in that ad and what people have seen on their front page week after week do not mesh. Reality vs. Mike.
Great article by David North. Thanks John for that link. I am going to spread this around Aberdeen. Its one of the best explanations I've seen.
Mark,
Don't just spread the North article about the missing $120 million around Aberdeen, spread it around the state.
Thanks
Cory found it first and posted it here. Great piece, high level of readability by the general public.
How much did Mike Rounds get paid by Joop Bollen after Rounds left office?
I'd like to see an ad from Wismer or Weiland about Lawrence and Schiller getting multiple multi-million dollar no-bid contracts from the state, before and while Mr. Lawrence is chair of the SD GOP and while Governor Dennis Daugaard's offspring work for Lawrence and Schiller. They could throw in for good measure how Mr. Lawrence pumped some of that money into the SD Republican party to prop up the party. They could also research how much in political contributions Mr. Lawrence and others at Lawrence and Schiller made to Rounds & Daugaard. The ad could feature a nice cartoon graphic showing arrows going in a circle with taxpayer money being circulated among the parties. Or maybe some cartoon people in a circle scratching each other's backs. Throw in a cartoon piggy bank for good measure as the narrator says "They think the state treasury is their own piggy bank." Go with it Wismer or Weiland!
If they go with the scratching backs, the narrator could say, "X million dollars. That's a lot of scratch."
Wismer could follow up with a cartoon commercial showing a herd of elephants lined up pilfering peanuts from a box labeled state treasury. The box is guarded of course by shifty-eyed elephants looking around to make sure nobody notices the pilfering. Then when a lone donkey is looking the shifty-eyed watch elephants wave off the line of pilferers and the line scatters. The donkey moves in to guard the peanuts. Narrator says something to the effect of, the elephants in Pierre are divvying up the peanuts among themselves. Time to cull the herd.
In other news, Senator Tim Johnson has asked the Government Accountability Office to review the federal EB-5 program. His letter to the GAO doesn't mention monkeyshines in South Dakota specifically, but it does say that he is alarmed by reports of "abuse and fraudulent use" of EB-5 across the country.
I am puzzled by the contention that the EB-5 funds are "missing." They were raised as investments into NBP, which had sporadic development because of a constant shortage of capital. Presumably, the funds went to pay contractors, who had mechanics' liens against the company, and to pay off back taxes. The confusion arises from the reporting on NBP's bankrupticy. Generally, a summary report is made which shows where the company's financing came from and where it went. No such summary accounting that I am aware of was ever made. For example, there has never been an accounting of how much NBP sold in TIF bonds and what happened to them. One presumes that the funds were paid out for materials, machinery, and labor and are, for the most part trackable. Whether the holdng company of the funds was atate or private entity, the funds would be dispersed to NBP which in turn would, resumably, pay its bills. It is unctween waslear why the funds would accrue to state coffers, whic they were raised for the construction of NBP. If there is a disparity between ty he funds raised and their dispersement, it has not been reported.
MIssing funds seems to be a diversion of attention away from the degree of corruption on which the EB=5 fraud operated. And that corruption extends far beyand economic developkent scams into the law enforcement and justice system, into the Regents, and into the codified laws, which permit state and local officials from hiding their performace from academic program? It was an economic development scam imposed on NSU by the Regents, which are notable for the lack of anyhone with professional experience or iinterest in higher
The EB-5 finagle is just one aspect of the courrption which rules this state. Those who wish to change it, and not simply get the hell out, need to carefully note the transactions which define the corruption'. In his posting, David North comments on the lack of concern for those who contributed to the EB-5 funds. The dismissive attitude toward Chinese investors may well be an indidcator of how deeply the corruption runs in the state.
Great post Mr. Newquist, I have also wondered the same and that is why I call the funds "missing". The contactor's excise tax and workmen's comp for the Korean workers that came in as well. How was that done, and who covered their insurance needs for the workers? The contractors that were not paid for the work they did there equals more "missing" funds.
When Bernie Madoff did the same kind of investment ponzi scheme, he was caught and jailed. Why are Rounds, Daugaard and Bollen allowed to walk free among us? They have been caught. Why is the head of the investigative branch of South Dakota government allowing them to be free? The whole culture of South Dakota republican politics is corrupt from top to bottom. It is indeed a criminal enterprise with RICO implications.
David, in your opinion, what would a "forensic audit" of the EB-5 administration in South Dakota produce? What should citizens do starting on Nov. 5 to make sure this scam isn't set aside and forgotten? Realistically, how far will progress continue to get at the truth of what happened if Daugaard and Rounds are elected?
The SDDP should be campaigning and demanding an open records law.