IEDC Releases Forensic Analysis Showing Questionable Spending

State Releases IEDC Audit Showing Questionable Spending

The audit reveals conflicts of interest inside the Indiana Economic Development Corporation.

INDIANAPOLIS — A recent state audit took a closer look at the Indiana Economic Development Corporation and its network of affiliates during Eric Holcomb’s time as governor—and what it found was a mix of public service and private interests that weren’t always kept separate.

Auditors flagged more than 30 instances where IEDC officials or board members had potential financial conflicts with outside organizations that received taxpayer funding. Yet, only one of those cases was formally reported to the State Ethics Commission.

One former executive, unnamed in the report, was tied to a $17.5 million contract. After leaving the IEDC, he joined a vendor that had benefited from state grants — without filing the required post-employment waivers. According to the audit, 82% of his salary at the new job came directly from that contract.

The report also highlighted several other findings:

Donors with dual roles: Of the 107 entities that donated to the IEDC’s private foundation, 46 later received more than $238 million in payments or tax credits from the agency.

Luxury travel: The foundation spent at least $6.7 million on international trips, including $200,000 in airfare for a single Egypt visit, stays at upscale hotels, VIP airport services, and $86,000 on international auto race tickets.

Family perks: About $167,000 in travel expenses went toward covering trips for relatives of state officials.

No-bid contracts: A vendor named Pure received $77 million for land acquisition work in the LEAP district — all without competitive bidding.

Hidden land deals: The IEDC used a shell LLC to quietly purchase 6,000 acres for $475 million, keeping its identity as the buyer undisclosed.

Missing financial records: Elevate Ventures, which received state funds to invest, failed to submit the required financial statements.

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