Review: State development agency needs stronger contractor oversight...
Created by kblakeslee on 11/1/2013 4:43:05 PM

INDIANAPOLIS (AP) - An independent review of a state development agency contractor that invested taxpayer money with companies run by its own chairman and his son found that state should have had stronger oversight.

Gov. Mike Pence ordered the review by the auditing firm KPMG after an investigation by The Indianapolis Star found Elevate Ventures directed $800,000 to a pair of companies connected to Elevate chairman Howard Bates and his son. The Indiana Economic Development Corp. hired the company in 2011 to invest money into promising startups.

The Indianapolis Star reports the review found Elevate was "substantially compliant" with its own policies, which it said were consistent with federal guidance and state law. But it also made 25 recommendations, including that the IEDC be given final say over the contractor's investment decisions.