Michigan AG joins calls to abolish MEDC amid new allegations

(The Center Square) – Another scandal is brewing at the Michigan Economic Development Corp. over more allegations of grant fraud.

This comes after The American Arab Chamber reportedly fired Executive Director Bilal Hammoud amid allegations that more than $1 million of a $3.4 million grant administered by MEDC went missing.

Hammoud is considered an ally of Gov. Gretchen Whitmer, a Democrat, who appointed him to the state’s Workforce Development Board two years ago.

The allegations add to longstanding concerns surrounding MEDC, which in recent years have centered on Fay Beydoun.

In that case, the Whitmer ally and donor is facing 16 felonies tied to the alleged misuse of a $20 million state grant awarded to her nonprofit, Global Link International.

Republicans pointed out the similarity between the stories.

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“If this all sounds familiar, it's because Hammoud replaced Fay Beydoun, who is facing 16 felony charges for – you guessed it – ’misusing’ a grant from Gretchen Whitmer's MEDC,” Michigan Senate Republicans posted to social media. “And in case you were wondering how close Hammoud and Whitmer are, she took him on one of her junkets to the UAE and Bahrain last year.”

While state Republicans have long called for the abolition of the corporation, a taxpayer-funded economic development agency, Michigan Attorney General Dana Nessel notably joined in those calls after the Hammoud story broke.

“Abolish the MEDC,” Nessel posted to social media.

The Michigan Attorney General’s Office is coordinating with the FBI to investigate the matter. The chamber is also conducting its own independent investigation.

“This story of fraud at the MEDC is sounding eerily familiar, and it’s clear that the group is a horrible steward of Michiganders’ tax dollars,” said Gabe Butzke, a spokesperson for Michigan Forward Network. “For once, we are in agreement with Attorney General Nessel: it is time to abolish the MEDC.”

MEDC did not respond to a request for comment from The Center Square.