Ethics Commission opens inquiry into North Dakota Development Fund

Summarised from 2 outlets · Updated 30 Oct, 23:57 · Archive

North Dakota's Ethics Commission has opened an inquiry into the Development Fund over concerns about financial oversight and conflict of interest handling.

The North Dakota Ethics Commission voted unanimously on Wednesday to open an inquiry into the North Dakota Development Fund, expanding its scrutiny beyond initial information-gathering in September. The decision follows a performance audit covering July 2019 through June 2024, which identified just under $4 million in financing for five entities connected to two fund board members and found insufficient documentation showing how potential conflicts were identified, evaluated and managed.

The fund, run under the Department of Commerce, provides loans to new and expanding North Dakota businesses that may struggle to secure traditional financing. This week saw two board members, Jim Albrecht and Rob Lindberg, resign. The fund announced more than $6.3 million in loan approvals on Tuesday, including $5 million for Packet Digital's drone battery manufacturing plant in Fargo.

Attorney General Drew Wrigley declined to investigate, saying his office cannot do so because it is already defending board members who were sued. Kfyrtv reports that the legislature's audit review committee recommended eliminating the fund entirely and transferring its outstanding loans and investments to the Bank of North Dakota, a recommendation requiring action by state lawmakers.

How it is being reported

• Attorney general Drew Wrigley to not investigate ND Development FundNorth Dakota state lawmakers recently turned over a concerning audit to Attorney General Drew Wrigley, but Wrigley said he doesn't plan to investigate the North Dakota Development Fund.KXNET · 30 Oct, 23:28
• Ethics Commission launches probe amid scrutiny of ND Development Fund’s financesThe North Dakota Development Fund has come under scrutiny in recent weeks following a recent audit.Kfyrtv · 29 Oct, 23:03

In this story: North Dakota Development Fund · North Dakota Ethics Commission · North Dakota · Pam Sharp · Drew Wrigley · Jim Albrecht · Rob Lindberg · Packet Digital

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log