News Summary

Michigan Governor Gretchen Whitmer is under investigation regarding a $20 million budget earmark connected to Fay Beydoun, a businesswoman who hosted a fundraiser for her. Allegations of embezzlement and mismanagement of funds related to Beydoun’s Global Link International have surfaced, raising ethical concerns about their relationship. The probe has revealed troubling financial irregularities and lack of oversight, prompting calls for a federal investigation. As the situation develops, it is capturing significant public and political attention.

Lansing, Michigan – Michigan Governor Gretchen Whitmer is embroiled in a significant investigation concerning a $20 million budget earmark tied to a businesswoman, Fay Beydoun, who hosted a fundraiser for her in September 2021. The ongoing probe by Attorney General Dana Nessel raises serious allegations of embezzlement linked to Global Link International, a business accelerator founded by Beydoun.

Beydoun’s fundraiser for Whitmer raised $13,500, and she has donated more than $16,000 to the Governor’s campaigns over two election cycles. At the time of the fundraiser, Beydoun was reportedly seeking state funding for Global Link, raising concerns about the ethical implications of her relationship with the Governor while pursuing state grants.

Recent court documents reveal that Whitmer and her team were aware of discussions about the grant included in a 2022 budget bill signed by the Governor. Beydoun communicated via email with Tricia Foster, who serves as Whitmer’s chief operating officer, stating that the Michigan Economic Development Corporation (MEDC) had approved the project upon the Governor’s request. However, the timing of the earmark has raised eyebrows, as it was included in a 2022 budget passed by a Republican-led Legislature instead of the following year as previously suggested by Beydoun.

The probe is further complicated by claims that the MEDC has not cooperated with investigators. Last month, Nessel’s office executed a raid on the MEDC’s offices amidst suspicions of cover-ups, as allegations emerged that the agency may have been involved in mismanaging funds allocated for the project. Beydoun has claimed that MEDC CEO Quentin Messer Jr. was privy to the project’s approval, raising further accusations of negligence in oversight.

Concerns regarding financial irregularities include reports from a former employee of Global Link, who reported Beydoun for lacking oversight, resulting in questionable spending practices. This employee alleged that Beydoun engaged in misspending activities, prompting claims of a broader culture of lax financial governance within the organization. Reports of excessive expenditures by Beydoun are alarming, including a $4,500 purchase for a coffee maker, an extravagant salary of $550,000, and a $11,000 first-class flight to Europe.

The MEDC defended its position during investigations, invoking attorney-client privilege over certain documents requested by the Attorney General. However, there have been allegations that the Chief General Counsel of MEDC, Linda Asciutto, attempted to obstruct the investigation during the June raid.

Political reactions to the unfolding situation have been swift. Michigan Senate Minority Leader Aric Nesbitt has called for a federal investigation, indicating the seriousness with which lawmakers are approaching the matter. Beydoun’s history of supporting Democratic initiatives, along with her tenure as executive director of the American Arab Chamber of Commerce and her role as COO at its Tejara innovation hub, has further drawn attention to her potential influence within the state.

The investigation into the relations between Beydoun and Whitmer’s administration raises critical questions about integrity and accountability in government funding processes. As Beydoun remains a member of the MEDC board responsible for overseeing the grant until March 2024, the situation persists in capturing the attention of both state officials and the public alike, as the implications of this investigation continue to unfold.