Can the state authorize a forensic audit of SDRC, Inc?
By Rep. Kathy Tyler (D-Big Stone City)
One of the big questions concerning my request for a forensic audit of South Dakota’s EB-5 Visa program is whether or not the state has the authority to authorize an audit of SDRC, Inc, a privately held company.
The SD Legislature could and should immediately authorize a forensic audit of SDRC, Inc.
The contract outsourcing the administration of the lucrative EB-5 franchise to SDRC, Inc was made effective on December 22, 2009 and was signed by South Dakota Department of Tourism and State Development Secretary Richard Benda and by SDRC, Inc. President Joop Bollen on June 4, 2010.
Under Section 14 of the contract: (Please note that SDRC in this paragraph refers to SDRC, Inc.; DTSD is the Department of Tourism and State Development—now GOED; CIS is Citizen and Immigration Service)
“SDRC shall maintain such books, records, and reports as are currently or in the future required by CIS, 8 CFR 204.6 or other applicable law, or as may otherwise reasonably be required by DTSD. SDRC shall provide true and correct copies of such books, records and reports to DTSD as often as such books, records and reports are required to be provided to CIS, but in no event less than monthly. SDRC shall provide DTSD or its designee reasonable access to SDRC’s original books, records and reports such that DTSD can assure itself of SDRC’s compliance with the record-keeping requirements contained in this paragraph.”
Even though the Administration official claims that South Dakota cannot legally audit SDRC, Inc., the contract language specifically states our right to access the original books, records, and reports. The state can and should authorize an audit of the entire program, starting in 2004 to the present time.
Unless the Administration is going to suggest that the Legislature cannot provide oversight to an Executive Branch Department, there is no reason not to order up a forensic audit of SDRC, Inc. It is our duty and responsibility to the citizens of South Dakota to authorize this audit. It’s time to do what’s right.
If SDRC, Inc. wants to obstruct justice, they can seek their own private attorneys. It will illuminate just where guilt truly lies.
And off the record, I’m not asking for an audit of a federal program as some reports are stating. I am asking for an audit of South Dakota’s EB-5 program.