State will audit Texas technology fund over ties between Perry, donors

[w8liftinglady]

Let it be so...

http://www.dallasnews.com/sharedcontent/dws/news/texassouthwest/stories/112410dntexetf.26027319e.html


AUSTIN – The state auditor is launching an examination of Emerging Technology Fund following reports that private start-up companies whose investors and executives are large contributors to the governor have benefited from the fund.

The ETF, created by the Legislature in 2005 at the behest of Gov. Rick Perry to bolster economic development, has distributed $173 million in grants to private companies and another $161 million to universities.

An investigation by The Dallas Morning News found that more than $16 million from the ETF has been awarded to companies with ties to Perry supporters, and that on at least one occasion, a friend of Perry’s managed to still be awarded a grant even after it was rejected by a review panel.

Most of the decision-making behind the awards, as well as the names of investors in chosen companies, has been shrouded in secrecy.

Perry has denied that politics plays any role in choosing awards and points to regional board reviews of each proposal.

But Perry appoints review members and his office administers the program. The lieutenant governor and House speaker also must sign-off on grants, but they review material provided by the governor’s office and don’t act until Perry decides to back an applicant.

State Auditor John Keel said Wednesday his office will start an audit Dec. 1 and he hopes to have the audit completed by June.

“There’s been a lot of focus and attention on this in the press, all of those things brought us to the conclusion that we need to initiate an audit of the Emerging Technology Fund,” Keel said.

The fund has not been audited by the state since its inception. The law creating the fund did not provide for audits.

Keel said the audit will look into monitoring of the funds, compliance of the companies and universities receiving the taxpayer money and internal controls over awards.

“It is a significant amount of money. The state has a lot invested in this and in the outcomes,” Keel said.

Perry spokeswoman Lucy Nashed said, "We welcome the state auditor's review, and are working closely with their office."

[w8liftinglady]

1. um...that would be Texas...the one raising Public college tuition and laying off teachers