A Democratic candidate for Governor in Wisconsin was implicated in a scandal related to grant funding at the Wisconsin Economic Development Corporation after it was revealed that over $100,000 in funds were misappropriated.
The candidate, Melissa Hughes, was the Chief Executive Officer of the Wisconsin Economic Development Corporation, or WEDC. She stepped down from the position just days before announcing her candidacy for Governor.
The discovery was made in 2023 after an audit was conducted by the Joint Legislative Audit Committee, made up of legislators from both parties to provide oversight of Wisconsin’s state departments and agencies.
One of the Committee’s Co-Chairs, Senator Eric Wimberger, R-Green Bay, said that there was ‘no excuse’ for the incident.
The audit reportedly revealed that the WEDC gave $50,000 in grants to ineligible recipients and had failed to require numerous other recipients to repay $64,300 in funds after they failed to comply with their contracts.
Hughes announced her bid for Governor last week as Democrats seek a replacement for outgoing Governor Tony Evers. (RELATED: Rep. Tom Tiffany Announces Run for Wisconsin Governor)
In addition to the over $100,000 in misallocated funds, the audit found that the WEDC failed to claw back $2.6 million in tax credits from recipients who failed to meet contractual obligations.
“When organizations like the WEDC are lax in their adherence to statutory requirements and policies, it is the role of legislative oversight to demand improvement. The Audit Committee will continue to be attentive to the work of the WEDC, particularly as they recover COVID-era misallocated funds,” Representative Robert Wittke, R-Racine said at the time.
Hughes has quickly emerged as a frontrunner for the Democratic nomination, raising over $200,000 on the first day of her candidacy with significant support from Wisconsin’s business community. (RELATED: GOP Figures Warn: Institutions Turning Blind Eye to Attacks on Conservatives)
