Whitmer breaks silence on $20M earmark probe, says she's 'very troubled' by allegations
- Gov. Gretchen Whitmer ‘very troubled’ by budget earmark probe, say grantees who misuse funds should be ‘held accountable’
- Records show Fay Beydoun hosted Whitmer fundraiser while seeking state funds, claimed governor requested funding approval
- State investigators and Michigan Economic Development Corporation officials are in court over a contentious search warrant
DETROIT — Michigan Gov. Gretchen Whitmer said she’s “very troubled” by embezzlement allegations that followed a $20 million budget earmark, telling reporters Thursday that any grantee misusing state funds “should expect to be held accountable.”
The investigation by Attorney General Dana Nessel's office is focused on Fay Beydoun, a Whitmer donor who filed paperwork to create a nonprofit called Global Link International shortly before securing state funds in a 2022 spending bill Whitmer signed into law.
Beydoun, a longtime supporter of Democratic candidates, hosted a 2021 fundraiser for Whitmer around the time she claimed in an email that the governor was helping secure funding for the project.
Whitmer Chief of Staff JoAnne Huls also expects to be among the "witnesses" in the ongoing earmark investigation, according to court filings first reported by The Detroit News.
Asked on Thursday whether she or anyone on her staff played a role in securing the grant for Beydoun, Whitmer demurred, telling reporters she doesn’t comment on ongoing investigations.
Related:
- Records: Businesswoman hosted Whitmer fundraiser while seeking $20M earmark
- Former legislative aide charged with embezzlement in $25M Clare earmark scandal
- Former House Speaker Lee Chatfield, wife to stand trial on corruption charges
But she said ensuring “every dime of taxpayer dollars is not wasted” is an important part of the budget process, expressing support for competitive bidding processes involving individual grants. That did not happen with the earmark for Beydoun, which was ultimately approved by the Legislature.
“I take this very seriously, and to say I'm very disappointed would be, really, not nearly strong enough language about how I'm concerned about this,” Whitmer said following an unrelated press conference announcing medical debt forgiveness.
The earmark, included in a state budget bill Whitmer signed in 2022, was intended for an “an international business accelerator” located in Farmington Hills that would attract “top international entrepreneurs to establish their companies in Michigan.” That funding went to Global Link.
Whitmer had not previously commented on the grant. But earlier this month, Lt. Gov. Garlin Gilchrist told reporters the administration proposed — and would have preferred — a competitive grant program over a legislative earmark.
The budget in question included more than $1 billion in legislative earmarks, including a $25 million grant for a Clare health park that was also investigated by Nessel, who in May charged a former legislative aide with embezzlement and other alleged crimes.
Nessel’s office raided the Michigan Economic Development Corporation offices last month to investigate Beydoun’s use of the funds, which reportedly included a $4,500 coffee maker, a salary of $550,000 and $11,000 first-class plane ticket to Europe.
The MEDC is appealing a recent court decision in an attempt to block the attorney general from reviewing some documents confiscated in the raid, claiming attorney-client privilege.
Michigan Senate Minority Leader Aric Nesbitt, a Porter Township Republican seeking the 2026 gubernatorial nomination, recently called for a federal investigation, citing Detroit News reporting that Whitmer had signed a letter to Qatari officials that Beydoun had authored.
“Official email records confirm that Beydoun communicated directly with the governor’s office to secure the grant," Nesbitt said last week in a statement. "It’s now alleged that top MEDC officials not only knew about the arrangement, but also attempted to hide and withhold evidence from investigators."
Asked whether MEDC should have canceled the grant sooner after learning about questionable spending by Beydoun, Whitmer told reporters that she’s “glad that they canceled it.”
“I’m glad that they are seeking to recoup the dollars, and I’m hopeful that the attorney general will help in that effort,” Whitmer said.
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