Triangle companies receive grant money lacking proper oversight - WRBL

Triangle companies receive grant money lacking proper oversight

Posted: Updated:
RALEIGH, N.C. -

An audit released this week accused North Carolina's Commerce Department of taking companies at their word that they were properly spending millions in grant money to create and save jobs.

State Auditor Beth Wood's report focuses on $20 million awarded in 2010 under the Commerce Department's Job Development Investment Grant (JDIG) program.  Since the program's inception in 2003, it has awarded 145 grants, totaling more than $600 million.

The award recipients for the audited period were expected to create about 5,800 new jobs and save around 6,800 others statewide.  Locally, WNCN learned that four companies were awarded a total of $637,000 to create 649 new jobs and save 1,871 others.  Those companies were: Caterpillar, Inc. in Lee County, Novo Nordisk in Johnston County, and Siemens Energy and Novartis Vaccines and Diagnostics, both in Wake County.

WNCN obtained the JDIG annual report for 2012, in order to account for the progress those four companies made in 2011 -- their first grant year.

Siemens and Novo Nordisk each saved the number of jobs they had separately promised – a total of 696 -- but they fell 30 short in creating new ones.  There's no record for Novartis and Caterpillar, Inc. because their progress hadn't been finalized at the time of the annual report.

WNCN left messages with all four companies, but only Novartis responded back.  A representative promised to pull their records.

The NC Commerce Department's Josh Ellis also told WNCN that he would look for their records.  Regarding the discrepancies with the number of jobs created, he said JDIG only pays the money at the conclusion of the grant period.  So if a company failed to meet their job creation or investment goals, it would not receive the full grant amount.  However, if a company surpassed its goals – as was the case with several outside our area – it would not be paid more than the initial JDIG amount.

He added that because of this "pay on the back end," he expected that the $20 million audited was actually less than the money initially pledged.

Following the release of the audit, Commerce Secretary Sharon Decker told reporters that companies now have to formally say that they are keeping their commitments, which becomes legally binding.

She also said her department is examining what other states are doing to oversee their grants and will release its findings and give an update on any changes in mid-November.

  • Trending StoriesTrending StoriesMore>>

  • Woman impales herself on cemetery fence; says she was running from attacker

    Woman impales herself on cemetery fence; says she was running from attacker

    Wednesday, July 23 2014 2:53 PM EDT2014-07-23 18:53:18 GMT
    A woman claims she was running from an attacker and tried to jump a five foot fence when she became impaled. Firefighters had to use power saws and a grinding saw to cut her free, all while she was conscious. After 30 minutes she was transported to an area hospital for surgery to remove the spike sticking out of her thigh. It happened at Vine Cemetery in Hazleton. She said the nearest gate was locked. Witnesses backed...
    A woman claims she was running from an attacker and tried to jump a five foot fence when she became impaled. Firefighters had to use power saws and a grinding saw to cut her free, all while she was conscious. After 30 minutes she was transported to an area hospital for surgery to remove the spike sticking out of her thigh. It happened at Vine Cemetery in Hazleton. She said the nearest gate was locked. Witnesses backed...
  • 2 charged with first-degree murder in beating death of UNC professor, cancer researcher

    2 charged with first-degree murder in beating death of UNC professor, cancer researcher

    Friday, July 25 2014 9:00 AM EDT2014-07-25 13:00:14 GMT
    A UNC research professor was robbed and beaten to death Wednesday afternoon on University Drive in Chapel Hill, police said.
    A UNC research professor was robbed and beaten to death Wednesday afternoon on University Drive in Chapel Hill, police said.
  • Largest companies by revenue in each state

    Largest companies by revenue in each state

    Thursday, July 10 2014 8:01 PM EDT2014-07-11 00:01:10 GMT
    Broadview Networks recently decided to find out the biggest -- by revenue -- company in each state in the US.The company used the Fortune 500 list to start with, but needed data by state, so it turned to Hoover's.With data from that company, they were able to search through each state's list of companies and then find the largest -- by revenue.Just flip through the list above and see who is the biggest in each state, what town they are based and their revenue.
    Broadview Networks recently decided to find out the biggest -- by revenue -- company in each state in the US.The company used the Fortune 500 list to start with, but needed data by state, so it turned to Hoover's.With data from that company, they were able to search through each state's list of companies and then find the largest -- by revenue.Just flip through the list above and see who is the biggest in each state, what town they are based and their revenue.
Powered by WorldNow

1350 13th Avenue
Columbus, GA 31901

Telephone: 706.323.3333
Fax: 706.327.6655
Email: news@wrbl.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.