News Summary

An investigation has been initiated into a $20 million grant awarded to a nonprofit business accelerator linked to former Governor Gretchen Whitmer’s appointee. Questions about the legitimacy of the grant and its expenditures have arisen after reports of misallocated funds and a lack of transparency. Attorney General Dana Nessel is leading the inquiry, focusing on the actions of the Michigan Economic Development Corporation and the grant’s approval process. The situation has drawn criticism regarding governmental financial appropriations as the investigation continues.

Lansing, Michigan – An investigation has been launched into a $20 million grant awarded to Fay Beydoun, a former appointee of Governor Gretchen Whitmer, for a nonprofit business accelerator that has raised questions about its legitimacy and appropriateness. This grant was controversially included in the state budget in the final hours before it passed on July 1, 2022, for a nonprofit organization that had not yet been established.

Beydoun has come under scrutiny after reports surfaced indicating that she allocated $4,500 of the grant to purchase a coffeemaker and paid herself an annual salary of $550,000, despite lacking demonstrable progress toward her nonprofit’s stated goals aimed at attracting foreign investment. The investigation is spearheaded by Attorney General Dana Nessel, who has dispatched a team to investigate these allegations, culminating in a raid on the Michigan Economic Development Corporation (MEDC) offices where documents linked to the grant were seized.

As the investigation unfolds, Governor Whitmer’s office has sought to distance itself from the situation, directing inquiries to former Republican House Speaker Jason Wentworth. His connection to the funding decision has been unclear, with Wentworth claiming he was not aware that his name was associated with this particular grant.

Initially, the concept for the business accelerator was put forth by the Arab American Chamber of Commerce, an organization Beydoun formerly led. However, by the time the funding received approval, the chamber had exited the arrangement. Compounding the situation is an email from Beydoun in 2021, suggesting that the MEDC had given a tacit endorsement to the grant in accordance with the governor’s wishes, and indicated that two of Whitmer’s cabinet members were knowledgeable about the project.

The $20 million grant is a small part of nearly $1 billion in enhancement grants that were included in the state’s $76 billion budget. Critics have expressed concern about how these funds were allocated, noting that the grant was approved without adequate debate or discussion among lawmakers. Governor Whitmer has faced criticism for failing to publicly address her involvement in the grant issuance.

During the course of the investigation, Nessel’s office has alleged that the MEDC has not fully cooperated, resulting in the execution of search warrants at its offices as investigators seek clarity on the grant’s approval process and use of funds. Beydoun formed her nonprofit, Global Link International, shortly after the budget earmark was established, registering the organization at her home address.

Reports indicate that the grant facilitated various expenditures, including an $11,000 first-class plane ticket and over $408,000 allocated to salaries in the first three months alone. Beydoun has maintained an active presence in Michigan’s political landscape, contributing significant sums to Governor Whitmer’s campaign and occupying various influential positions within the Democratic Party.

The discrepancies and lack of transparency surrounding the grant have given rise to allegations of potential scandal. As the Attorney General’s investigation progresses, the focus remains on the actions of all parties involved and the implications of this funding on Michigan’s economic landscape. The outcome of this inquiry could have repercussions for the state’s political climate and public trust in governmental financial appropriations.