No One Was Tracking $69M in Wis. Loans
Posted at: 10/19/2012 6:21 PM
MADISON, Wis. (AP) - The state's quasi-public economic development agency lost track of $69 million in loans to businesses because no one was in charge of keeping tabs of that money.
That is what members of the board that oversees the agency were told Friday.
When the Wisconsin Economic Development Corp. was created last year, no one was put in charge of keeping track of the loans that had been issued by its predecessor agency the Commerce Department.
The new agency's second-in-command Ryan Murray says they are still trying to find out how that happened.
Of the $69 million in loans, about $9 million are past due or in default.
Board member and Democratic state Rep. Peter Barca says the news is another black eye for an agency he says is in chaos.
Former Marshfield Clinic leader to head WEDC
The former head of the Marshfield Clinic has been tapped by Gov. Scott Walker to temporarily lead the state's troubled agency in charge of job creation.
Walker announced Friday that Reed Hall will be interim chief executive officer at the Wisconsin Economic Development Corp. He will serve until a search committee selects a permanent replacement.
The agency created last year has made a number of high-profile gaffes, including not keeping tabs on $69 million in loans. Of those, $9 million were overdue.
The current CEO Paul Jadin is resigning at the end of the month.
Hall's first day at WEDC will be Nov. 2.
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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