Why It Matters
North Dakota’s Ethics Commission will examine documented management problems at the North Dakota Development Fund, a state program that provides loans and investments to new businesses. The inquiry is the commission’s first.
What Happened
The Ethics Commission voted unanimously Wednesday to begin the inquiry. Commissioners will start by reviewing an audit and requesting records from the Development Fund, potentially coordinating those requests with other state agencies.
An audit covering 2019 through 2024 found missing documentation for millions of dollars in transactions, borrower-reported job data that could not be verified, and inconsistent conflict-of-interest procedures.
The Legislature’s audit review committee asked Attorney General Drew Wrigley last month to investigate. Wrigley declined earlier this month because his office represents current and former Development Fund Board members in a civil lawsuit. He said no credible evidence of a crime had been presented to prompt a criminal investigation. “We have nothing to refer,” Wrigley said.
Ethics Commissioner Mark Western said the state constitution permits the panel to initiate an inquiry or investigation. Commissioner Lisa Edison-Smith said the Development Fund’s circumstances warranted at least an inquiry.
Commerce Commissioner Chris Schilken said corrective measures are underway or finished. He also said the audit findings predate his tenure and that of Gov. Kelly Armstrong. Development Fund CEO Brian Opp declined to comment.
Sen. Jeff Magrum said he supports the commission’s inquiry. Commissioner Pam Sharp said the panel needed to act if no other body would initiate a review: “If we don’t initiate, who would initiate it, if it wasn’t us?”
By the Numbers
7 years — age of the Ethics Commission
1991 — year the Development Fund was created
eight — members of the Development Fund Board
2019-2024 — period covered by the Development Fund audit
millions of dollars — transactions lacking documentation
Wednesday — day the Ethics Commission voted to begin the inquiry
last month — time the Legislature’s audit review committee asked Wrigley to investigate
earlier this month — time Wrigley declined to investigate
Zoom Out
The Development Fund was created in 1991 and operates through an eight-member board appointed by the governor. Its financing supports new businesses through loans and investments intended to fill funding gaps.
What’s Next
Commissioners will review the audit and seek Development Fund documents. The inquiry may involve coordinated records requests with other state agencies.