During a recent meeting of the North Dakota House Industry, Business, and Labor Committee, significant concerns were raised regarding the transparency and financial practices of the North Dakota Development Fund. An engineer and business owner from South Beulah provided compelling testimony, highlighting troubling financial trends and a lack of accountability within the fund.

The individual, who spoke on behalf of himself, expressed frustration over the handling of taxpayer money by the Development Fund, particularly in light of substantial charge-offs and provisions for losses. He noted that in 2023 alone, the fund wrote off $2.6 million in loans and converted $4.6 million into equity, subsequently accruing $2 million in losses on those equities. Alarmingly, he pointed out that 96% of the value of their equity investments was categorized as provisions for losses, raising questions about the fund's management and decision-making processes.

The engineer's attempts to obtain detailed financial information from the Development Fund were met with resistance. He described a lack of cooperation from the fund's former CEO, who refused to provide a simple list of investments and loans. After submitting an open records request, he was charged $100 for information that he ultimately did not receive, leading him to seek legal counsel and request an opinion from the Attorney General's office regarding the unfulfilled request.

In light of these issues, he urged the committee to consider amending current legislation to enhance transparency and accountability within the North Dakota Development Fund. He suggested that any audits should focus specifically on the Development Fund rather than the entire Department of Commerce, as he believes the core problems reside within that specific entity.

The testimony underscores a growing demand for greater oversight and clarity in how public funds are managed, reflecting broader concerns among North Dakota citizens about the effective use of taxpayer resources. As discussions continue, the committee may take these insights into account when shaping future policies aimed at improving financial accountability within state-funded programs.