Democrats want investigation into $500,000 WEDC loan

Democratic members of WEDC’s board are calling for a federal investigation into a $500,000 loan the jobs agency gave to a Milwaukee construction company.

Assembly Minority Leader Peter Barca, of Kenosha, and Sen. Julie Lassa, of Stevens Point, said during a news conference yesterday the U.S. Department of Justice should investigate the failure to track the 2011 loan to Building Committee Inc., the apparent loss of WEDC records about the deal and the potential that the company’s owner acted fraudulently in filling out agency paperwork. The loan was for Building Committee’s work on retrofitting banks and credit unions for energy efficiency.

Laurel Patrick, Walker’s press secretary, responded to the Dems’ allegations via email, initially labeling the call for an investigation “political gamesmanship.”

Later, Patrick sent a follow-up email saying Walker has asked for the next WEDC board meeting to include a discussion of the awards administration process, including the BCI loan.

“There should be an open, thorough, and transparent discussion of this topic, and the appropriate place to address recent concerns raised by two board members is at a full meeting of the board,” Patrick says in the email.