One state audit found that bonus checks intended for frontline workers during the pandemic were handed out to undeserving recipients. Another criticized a Minnesota state agency for failing to ensure there were no conflicts of interest in taxpayer-funded mental health and addiction programs. A third detailed lax oversight of a program to feed needy kids which federal prosecutors say resulted in the nation’s largest Covid-era fraud scheme.
But when confronted with these and other troubling examples of waste, fraud and abuse, some state agencies working under the administration of Democratic Gov. Tim Walz repeatedly minimized or dismissed the allegations, the state’s nonpartisan auditor, Judy Randall, told CNN.
A CNN review of audits – and the responses they prompted – as well as interviews with statewide politicians and pundits, found that Walz has been a hands-off leader when it comes to seeking accountability for episodes of fraud and mismanagement on his watch. What’s more, some state agencies headed by his appointees have responded defensively in recent months to the audits – a dynamic that Randall, who has worked in the department for 26 years, has found surprising.
Randall told a local media outlet this summer that the responses of some agencies to her audits have had a “shoot the messenger” feel of late. CNN reviewed more than a dozen reports from her office that held specific agencies responsible for allowing fraud, waste or mismanagement on their watch during the Walz administration.
Some addressed high-profile scandals such as the pandemic fraud allegations and a troubled light-rail project – whose genesis predates Walz but is currently monitored by 17 Walz appointees – that has suffered from more than $1.5 billion in cost overruns. Randall’s office faulted that agency last year for a lack of transparency about rising costs and failure to ensure contractors’ ballooning price tags were justified. Others found holes in safeguards to waste or raised more targeted conflict-of-interest concerns, such as a state Department of Public Safety employee who received payments from the recipient of a grant that the employee oversees.
Randall told CNN that she knows of no personnel changes linked to any audit by her office since 2019, when Walz was sworn in.
Critics say that is on Walz, now the Democratic candidate for vice president.
“When he is not holding any commissioners responsible, then yes, Governor Walz is responsible for the fraud that has been ongoing in the state of Minnesota,” said Lisa Demuth, the state House GOP leader. “It falls squarely on his shoulders.”
There are also signs of resentment from the state agencies on the receiving end of the audits.
Read more at CNN.com
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