Sheri Welsh, Chair | Small Business Association of Michigan
Sheri Welsh, Chair | Small Business Association of Michigan
Senate Republican Leader Aric Nesbitt has called for a federal investigation into the Michigan Economic Development Corporation (MEDC) concerning a $20 million grant awarded to Fay Beydoun, an associate of Governor Gretchen Whitmer. Nesbitt claims that the Attorney General's investigation revealed "deeply concerning details" about the misuse of the grant.
Nesbitt stated, "Official email records confirm that Beydoun communicated directly with the governor’s office to secure the grant." He also alleged that MEDC officials were aware of and attempted to conceal evidence from investigators.
Stacey LaRouche, a spokesperson for the Governor’s office, directed inquiries to former House Speaker Jason Wentworth, who sponsored the legislative enhancement grant. Wentworth denied seeking funds for Beydoun’s project.
The Fiscal Year 2023 budget included $1.1 billion aimed at job creation and business attraction in Michigan. A $15 million allocation was proposed for international talent attraction but was cut by the Republican-led Legislature. Instead, Wentworth sponsored a separate $20 million non-competitive legislative enhancement grant with specific criteria under the MEDC budget.
The Detroit News reported that MEDC CEO Quentin Messer Jr. congratulated Beydoun on securing a $15 million program in Whitmer’s initial budget recommendation via email. The Attorney General's office executed search warrants at MEDC's headquarters in June.
Whitmer reportedly distanced herself from Beydoun after reports emerged about her use of grant funds, including spending $4,500 on a coffee maker. Beydoun was subsequently removed from the MEDC Executive Committee.
In court filings, an undated email from Beydoun to Whitmer’s chief operating officer indicated that MEDC approved her grant as requested by Whitmer. Investigators interviewed a Global Link employee who claimed Messer did not investigate complaints about Global Link's operations.
Nesbitt criticized media reports suggesting Whitmer signed a letter written by Beydoun to Qatari officials encouraging off-the-record communication with her. The Detroit News reported that this draft letter invited Qatar's deputy prime minister to Michigan.
Beydoun informed Messer via email about discussions with Whitmer regarding a trip to the Gulf Region and contact with embassies in Washington and Qatar. Foster returned the proposed letter with Whitmer’s signature within a week.
Nesbitt concluded by urging federal authorities to investigate potential threats or breaches related to foreign influence over Michigan’s economic future.