Last updated on 2014.11.11
Joop Bollen is trying to distract the Government Operations and Audit Committee from his illegitimate contract with himself, his apparent mismanagement of Northern Beef Packers, and his multiple violations of state policy and law by claiming that reporters like Denise Ross and Bob Mercer have wrecked South Dakota's chances of making more money from the EB-5 visa investment program.
Joop Bollen appears to forget that Governor Dennis Daugaard yanked Bollen's contract and put EB-5 on ice before any journalists started digging into South Dakota's EB-5 program. Bollen's own narrative to GOAC suggests that many in the state wanted to back away from the "liabilities" of EB-5 (which were what, Joop, if everything was being run properly?) back in 2009; the program hung on only because Bollen, Richard Benda, and the Governor's Office wanted to keep that money train rolling. Bollen ignores the fact that South Dakota at his behest (and with Mike Rounds's support) gave up the key competitive advantage of public, state-run status for its EB-5 program, making it harder for us to stand out among the growing number of EB-5 Regional Centers.
Maybe Bollen should switch to blaming Obama. Monday, the President announced that the U.S. will offer new, longer visitor visas to Chinese citizens. Starting today (November 12), tourist and business visas for Chinese visitors jump from one year to ten years. Student and exchange visas stretch from one year to five years.
Keep in mind that one attraction of EB-5 visas has been for wealthy Chinese to buy their kids' way into the country so they can attend American universities. But EB-5 visas cost $500K in at-risk investment plus tens of thousands in fees for lawyers and middlemen like Joop Bollen. President Obama's visitor visas don't give permanent residency the way an EB-5 visa can, but five years on an extended visa for a $160 application fee might sound like a bargain to a lot of folks considering EB-5.
South Dakota reporters are not killing EB-5. South Dakota has lost its EB-5 edge due to decisions made by South Dakota's EB-5 czar and his collaborators in state government. The President's new visa deal with China may reduce EB-5 demand even further.