West Virginia’s Senate Finance chairman is asking independent investigators with U.S. Treasury to examine the legality of transferring millions of federal covid relief dollars first to a fund controlled by the Governor’s Office and then toward construction of Marshall University’s new baseball field.
“Please consider this an inquiry as to whether West Virginia Governor, Jim Justice, grossly misappropriated, and misused $28,375,985.43 CARES funding provided to the State of West Virginia on non-covid elated expenses such that it would violate federal law/regulation, violate ethics standards, or would be subject to claw back at some time in the future for improper application,” wrote Senator Eric Tarr.
Justice, a two-term Republican governor, is considering a high-profile run for U.S. Senate.
Tarr sent the inquiry to the Office of Inspector General for U.S. Treasury and also sent copies to the West Virginia Ethics Commission and the United States Attorney for the Southern District of West Virginia.
“I appreciate in advance your response to these concerns regarding ethics, legality and risk of any future clawbacks,” wrote Tarr, R-Putnam.
Questions arose during a Senate Finance Committee meeting on Feb. 3.
The full situation unfolded late last year.
Berkeley Bentley, general counsel for the Governor’s Office, told senators that the state faced a deadline last fall to spend the remaining $28 million from federal Coronavirus Aid, Relief, and Economic Security Act funds.
The state incurred that amount in costs for pandemic-related expenses for corrections and homeland security, Bentley said.
Then the state reimbursed its own expenses by using the federal covid money. At that point, following the reimbursement, officials considered the amount to be state dollars rather than federal dollars — allowing more flexibility.
Facing the deadline, Bentley told senators, the administration found it simplest to transfer the reimbursed money into the Governor’s Office Gifts, Grants and Donations Fund.
Among that fund’s distributions following the transfer to the governor’s fund was $10 million to Marshall University to support construction of a new baseball stadium. Another $3.8 million for the baseball project came from the state water development fund.
“This has been a long time coming, and I am so proud to play a small part in getting this project across the finish line” Governor Justice said at the Sept. 29 baseball announcement.
Other expenditures by the grants fund totaled $246,088 and were directed toward payouts for Do It for Babydog sweepstakes winners who were being awarded getaways to state parks plus a minibus that was provided from the state to Appalachian Bible College.
So, Tarr’s letter contended, “the governor converted at least more than $10,000,000 funds received from CARES Act to giveaways not even remotely related to Covid 19 and claimed it as reimbursement for Department of Corrections expenses that had already been reimbursed. Given this information is federal investigation warranted?”
The governor’s chief of staff has said that’s not a helpful question to ask.
“It’s really unfair, and quite frankly it’s a little bit dangerous,” Brian Abraham, chief of staff to the governor, said earlier this year on MetroNews’ “Talkline.”
“Saying ‘We’re going to call the OIG at Treasury and report this, does nothing to harm us. But it does potentially have the impact that you be even further scrutinized in future grants to where it may slow down the money coming to West Virginia.”
He added, “If we get into where we’re writing letters and saying ‘We want this looked into,’ I mean that’s like calling the IRS and saying ‘I need an opinion on my taxes.’ It’s not necessary.”