FREDERICA FREYBERG:
OFFICIALS AT WEDC DID NOT RESPOND TO MULTIPLE REQUESTS FOR AN INTERVIEW OR A STATEMENT. LATE THIS WEEK, DEMOCRATIC MEMBERS OF THE WEDC BOARD, ASSEMBLY MINORITY LEADER PETER BARCA AND SENATOR JULIE LASSA CALLED ON THE U.S. JUSTICE DEPARTMENT TO INVESTIGATE TO DETERMINE WHETHER CRIMINAL VIOLATIONS MAY HAVE OCCURRED AT WEDC OVER THE HALF MILLION DOLLAR LOAN. REPRESENTATIVE BARCA JOINS US NOW FROM MILWAUKEE AND THANKS VERY MUCH FOR BEING HERE.
PETER BARCA:
GOOD TO BE WITH YOU, FREDERICA. THANK YOU.
FREDERICA FREYBERG:
BEFORE I ASK YOU ABOUT THE LOAN IN QUESTION, WHAT IS YOUR REACTION TO THE BUDGET COMMITTEE VOTING TO REMOVE THE GOVERNOR AS CHAIR OF THE BOARD THAT YOU SERVE ON?
PETER BARCA:
WELL, I KNOW THE GOVERNOR WANTED TO BE REMOVED AS CHAIR. OBVIOUSLY, FROM THE VERY START THIS HAS BEEN A VERY TROUBLED AGENCY. IT WAS NEVER PLANNED FOR APPROPRIATELY. THERE WAS NEVER A BUSINESS PLAN OR A TRANSITION PLAN PUT TOGETHER. AND THE GOVERNOR’S LOOKING VERY BAD. AND HE WANTS TO RUN FOR PRESIDENT. HE’S GOT A TROUBLED AGENCY THAT HE HIMSELF IS THE LEADER OF. SO IT WAS NOT A SURPRISE TO ME THAT HE ASKED TO BE REMOVED GIVEN HIS POLITICAL AMBITIONS.
FREDERICA FREYBERG:
ON THE LOAN THAT WAS THE SUBJECT OF THE INVESTIGATIVE PIECE IN THE WISCONSIN STATE JOURNAL, OTHER THAN THE FACT THAT THE COMPANY DEFAULTED ON IT, WHAT HAVE YOU LEARNED ABOUT THAT PARTICULAR TRANSACTION?
PETER BARCA:
WELL, FIRST LET ME SAY WE’RE TRYING TO LEARN MORE, AND SENATOR LASSA AND I HAVE BEEN STONEWALLED. THE GOVERNOR HAD INDICATED THAT WE SHOULD HAVE UNFETTERED ACCESS TO THE STAFF AND INFORMATION, AND THEY HAVE REFUSED TO TURN OVER DOCUMENTS TO US ABOUT THIS PARTICULAR LOAN, AS WELL AS WHATEVER OTHER UNSECURED LOANS MAY HAVE BEEN GRANTED OR LOANS GIVEN OVER UNDERWRITERS’ OBJECTIONS. SO WE ARE EXTREMELY CONCERNED. WE HAVE A FIDUCIARY RESPONSIBILITY. THE GOVERNOR HAS EVEN A LARGER FIDUCIARY RESPONSIBILITY AS CHAIRMAN. BUT THE STATE JOURNAL UNCOVERED THAT THIS LOAN, OF A HALF A MILLION DOLLARS, THEY WERE REQUESTING OVER $4 MILLION, WAS GIVEN BY THE SECRETARY UNDER WHAT HE CALLED WAS FAIRLY — FAIRLY SHAKY I BELIEVE WAS HIS TERM TO GIVE THIS LOAN. HE WAS EITHER TRYING TO BE PERSUADED OR COERCED BY THE GOVERNOR’S CAMPAIGN MANAGER AND HIS TOP AIDE TO GIVE THIS LOAN. NOW, THIS IS A LOAN THAT NEVER SHOULD HAVE BEEN GIVEN. IT WAS GIVEN UNDER FRAUDULENT CIRCUMSTANCES ON THE PART OF THE BORROWER, WHO DID NOT DISCLOSE LEGAL ENCUMBRANCES THAT THEY HAD. BUT OBVIOUSLY THE AGENCY DID A TERRIBLE JOB BECAUSE JUST A CURSORY REVIEW OF WHAT EVERY LANDLORD DOES, LOOK AT CCAP OR OTHER LEGAL DOCUMENTS, WOULD HAVE UNCOVERED THE FACT THAT THIS WAS A VERY TROUBLED COMPANY THAT OBVIOUSLY SHOULD NOT HAVE BEEN GIVEN THE LOAN. BUT EQUALLY AS BAD, THE LOAN DOCUMENTS ARE MISSING, WHICH SMACKS OF A COVER-UP OR IT SMACKS OF SHEER INCOMPETENCE. I HEADED THE MIDWEST SMALL BUSINESS ADMINISTRATION AND MANY OF THESE TYPES OF DOCUMENTS WERE KEPT UNDER LOCK AND KEY. IT'S A VERY SERIOUS CIRCUMSTANCE. OR EQUALLY AS BAD, PERHAPS THEY NEVER FILLED THESE OUT. THERE COULD BE CRIMINAL NEGLIGENCE THERE IF THEY KNEW ABOUT THIS LEGAL ENCUMBRANCE AND THEY IGNORED IT. SO THIS IS A VERY SERIOUS MATTER. IN WISCONSIN, OF COURSE, WE’VE ALWAYS TAKEN SUCH PRIDE IN HAVING CLEAN, OPEN AND TRANSPARENT GOVERNMENT AND THERE COULD BE CRIMINAL PAY-TO-PLAY HERE. IT DOES NOT LOOK GOOD. IT WAS A FANTASTIC INVESTIGATIVE REPORTING JOB BY THE STATE JOURNAL AND WE TAKE THIS VERY SERIOUSLY.
FREDERICA FREYBERG:
HOW DOES THE ALLEGED CRIMINAL PAY-TO-PAY COME ABOUT?
PETER BARCA:
WELL, IT COULD COME ABOUT IN A NUMBER OF CIRCUMSTANCES. IT COULD COME ABOUT IN THE CASE OF IF THEY PRESSURED, THEY GIVE THIS LOAN, THAT OBVIOUSLY THIS BORROWER SHOULD NOT HAVE RECEIVED. IT COULD COME ABOUT IF THEY NEVER BOTHERED TO — OR THEY FOUND OUT ABOUT THE FACT THAT THEY DID HAVE LEGAL ENCUMBRANCES AND THEY IGNORED IT. OR IT COULD COME ABOUT IF IN FACT THOSE MISSING DOCUMENTS WERE DESTROYED OR REMOVED AS PART OF A COVER-UP.
FREDERICA FREYBERG:
WHAT ABOUT CAMPAIGN CONTRIBUTIONS TO THE GOVERNOR?
PETER BARCA:
WELL, OBVIOUSLY THIS BORROWER AND WE HAVE TO THINK BACK. THIS IS DURING THE GOVERNOR’S FIRST CAMPAIGN, WHEN EVERYBODY IS DESPERATE FOR MONEY. HE WAS ONE OF ONLY 32 INDIVIDUALS THAT GAVE THE MAXIMUM DONATION. AND IT WASN’T THAT MANY MONTHS LATER THAT ALL OF A SUDDEN HIS CAMPAIGN MANAGER, WHO I BELIEVE BECAME THE CHIEF OF STAFF, AND HIS TOP AIDE, THE SECRETARY OF ADMINISTRATION, WERE HAVING THESE MEETINGS WITH SECRETARY JADEN, PUSHING TO GET THIS LOAN TO BE GRANTED.
FREDERICA FREYBERG:
WHAT IS YOUR RESPONSE TO SOME REPUBLICANS WHO SAY THAT THIS CALL ON YOUR PART FOR THIS INVESTIGATION IS PURE POLITICS?
PETER BARCA:
WELL, IT’S NOT PURE POLITICS. LOOK, I TAKE MY FIDUCIARY RESPONSIBILITY VERY SERIOUSLY, AS DOES SENATOR LASSA. I ALSO TAKE IT VERY SERIOUSLY THE REPUTATION OF THIS STATE AND THE IMPORTANCE THE CITIZENS PLACE ON CLEAN, OPEN AND TRANSPARENT GOVERNMENT. I DON’T CALL FOR THIS LIGHTLY. AS PEOPLE WILL RECOGNIZE, DESPITE ALL THE GOVERNOR’S LEGAL PROBLEMS WITH JOHN DOE ONE AND HIS JOHN DOE TWO INVESTIGATIONS, I’VE NEVER IN ANY WAY INDICATED THAT I THOUGHT HE WAS GUILTY. AND I’M NOT SAYING HERE THAT HE’S GUILTY OR NECESSARILY THAT HIS AIDES ARE GUILTY. BUT CLEARLY THERE WAS AT MINIMUM INCOMPETENCE. BUT OBVIOUSLY THERE’S SO MUCH SMOKE THERE AROUND WHAT THE STATE JOURNAL FOUND IN THEIR INVESTIGATION REGARDING MISSING RECORDS, REGARDING THE FACT THAT THIS LOAN SHOULDN’T HAVE BEEN GIVEN, REGARDING THESE MEETINGS THAT TOOK PLACE, THAT IT’S JUST EXTREMELY SUSPICIOUS. AND THE REASON WHY SENATOR LASSA AND I ARE PUSHING TO RECEIVE THESE DOCUMENTS, WE DON’T KNOW HOW MANY OTHER UNSECURED LOANS ARE OUT THERE. THE DEPARTMENT OF COMMERCE ALMOST NEVER GAVE UNSECURED LOANS, AT LEAST THE LAST FEW YEARS WHEN I WAS INVOLVED. SO THIS IS A BIG DEAL, THAT YOU GAVE A LOAN TO SOMEBODY THAT WOULDN’T PUT UP THEIR HOUSE FOR COLLATERAL, HAD VIRTUALLY NO COLLATERAL IF ANY COLLATERAL WHATSOEVER, AND HALF A MILLION DOLLARS IS GOING TO BE COMPLETELY LOST TO THE TAXPAYERS.
FREDERICA FREYBERG:
WE NEED TO LEAVE IT THERE. REPRESENTATIVE PETER BARCA, THANKS VERY MUCH FOR JOINING US.
PETER BARCA:
NICE TO BE WITH YOU FREDERICA. THANKS FOR FOLLOWING UP ON THIS IMPORTANT STORY.
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News Stories from PBS Wisconsin
02/03/25
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