DeLaney Requests Legislative Probe to Uncover Potential IEDC Fraud
INDIANAPOLIS — State Representative Ed DeLaney (D-Indianapolis) is calling for a full-scale legislative investigation into the Indiana Economic Development Corporation (IEDC), arguing that a recent state-commissioned audit revealed a “culture of secrecy” and structural gaps that may have allowed for the misappropriation of public funds.
On Thursday, DeLaney formally introduced House Resolution 1511, which seeks to establish a House Select Committee on Accountability. The committee would be tasked with investigating the IEDC’s financial practices, issuing subpoenas if necessary, and delivering a final report on its findings by July 1, 2026.
The move follows the October 2025 release of a 127-page forensic report by FTI Consulting. While that $800,000 audit flagged 45 unique findings—including 30 undisclosed conflicts of interest and “excessive” travel spending—it did not definitively state whether criminal activity had occurred.
“The report released in October made it clear that powerful people were given every opportunity to steal, but the report stops short of saying if they did or did not,” DeLaney said. “We owe it to our taxpayers to follow through… to determine whether these funds were misused and how to prevent this misuse going forward.”
Key Concerns: Secrecy and ‘Administrative Chaos’
During a press gaggle explaining the resolution, DeLaney expressed deep skepticism about continuing to fund the IEDC without stricter oversight. He described the agency as an “orphan” that has operated with excessive independence.
“I am reluctant, as a member of the Ways and Means Committee, to spend any money on the IEDC until we know what the problems have been and whether there’s been any misappropriation of revenue,” DeLaney emphasized. “What is this entity? … How do we supervise it? This inquiry would be the first step in supervising it.”
DeLaney specifically highlighted several “red flags” mentioned in the FTI report and his own observations:
The LEAP Project: Concerns over the 6,000+ acres of farmland purchased in Boone County at rates five times the normal value.
Water Rights: The lack of transparency regarding the movement of water from the Eagle Creek Reservoir to support dry industrial sites.
The ‘Dave Roberts’ Case: A potential violation of post-employment restrictions involving a former executive who joined an affiliated partner that received $17 million in state funds.
The resolution calls for a bipartisan panel, though the Republican supermajority would maintain control of the appointments.
Next Steps: A Call to GOP Leadership
For HR 1511 to move forward, it requires the backing of House Speaker Todd Huston. While DeLaney noted that the Governor’s office has signaled a neutral or cooperative stance, the decision ultimately rests with House leadership.
“The public sometimes confuses us with the Congress, which has all kinds of hearings and inquiries. We don’t do a lot of that,” DeLaney remarked. “I want to get a short, careful study… we can’t be spending billions of dollars on economic development without the public having confidence in it.”
