Irresponsible loans, a lack of oversight and personnel problems have plagued the Wisconsin Economic Development Corp. since its creation by Gov. Scott Walker's administration in 2011.
As the state made a $500,000 loan and later extended the due date for repayment, Building Committee Inc. was collapsing.
Walker tells reporters that then-Secretary Mike Huebsch was just doing his job when he pushed for a $500,000 loan that was never repaid.
The state gave a federally funded $686,000 loan to Morgan Aircraft but failed to perform an up-to-date financial review of its finances. State officials say the company, which created no jobs, is expected to default on the loan by the end of the year.
Assembly Democratic Leader Peter Barca of Kenosha accused the Wisconsin Economic Development Corp. of stonewalling his requests for the documents.
Assembly Minority Leader Peter Barca says recently released documents include evidence of wrong-doing.
Raymond Dreger, a board member of the Wisconsin Economic Development Corp., and chairman of the agency's audit committee, said some of the agency's biggest problems have been resolved.
Walker was asked about a company that hasn't repaid a $500,000 loan obtained after misrepresenting itself.
The Legislature's audit committee met Wednesday to discuss the Legislative Audit Bureau report on the Wisconsin Economic Development Corp., which was released in May.
They are the first confirmation authorities are investigating a company for allegedly misrepresenting itself to WEDC.
The previous explanation that the records were "transitory" has come into question after a state board reversed itself.