Three federal agencies are probing South Dakota’s economic development office, in what its director says isn’t related to the ongoing EB-5 visa scandal but could be inspired by it.
Speaking to lawmakers Friday, economic development commissioner Pat Costello revealed his office has requests for information from the U.S. Treasury, Housing and Urban Development, and Energy departments.
Each department is asking the Governor’s Office of Economic Development for more information about their own programs with GOED. For example, Costello said Housing and Urban Development wants more information about how South Dakota has handled its Community Development Block Grants, which are funded by the department.
Costello guessed news about alleged wrongdoing at GOED under under then-leader Richard Benda is behind those agencies checking in.
"I think the publicity that all this has come with, there’s been a number of those agencies that have just inquired," Costello said.