Auditor Fitzpatrick begins audit of SLDC after investigation finds allegations of improper activity to be credible

An investigation of the St. Louis Development Corporation (SLDC) conducted by the office of State Auditor Scott Fitzpatrick has uncovered possible improper governmental activity that has prompted an audit of the organization. Fitzpatrick said auditors from his office recently met with SLDC officials to commence the audit that will focus on the administration of the North St. Louis Small Business and Non-Profit Grant Program, as well as severance payments made to the former president.

"We received multiple whistleblower complaints that alleged misuse of ARPA funds through a  grant program administered by the SLDC. Our investigation has led us to conclude that an audit is the appropriate next step in delivering accountability for taxpayers," said Fitzpatrick. "With millions of dollars flowing through this program it is imperative  sufficient oversight is provided to ensure the funds are used appropriately. What we have seen so far raised several red flags, and warrant intense scrutiny of the program. We will do our best to give the people of St. Louis the answers they deserve and uncover any mismanagement or misuse of funds."

The investigation of the SLDC began after multiple complaints were received by the State Auditor's Office (SAO) whistleblower hotline. At least one whistleblower publicly raised concerns about potential fraud, as well as possible conflicts of interest, within the North St. Louis Small Business and Non-Profit Grant Program. This program is designed to provide grants to businesses and nonprofits disproportionately impacted by the COVID-19 pandemic. The investigation conducted by Auditor Fitzpatrick's office uncovered the possibility of improper governmental activity, which led to the decision to commence an audit that began September 25.

Individuals may provide information confidentially for consideration during the audit of the St. Louis Development Corporation to the State Auditor's Whistleblower Hotline by dialing 800-347-8597, by emailing moaudit@auditor.mo.gov,  or by visiting www.auditor.mo.gov/hotline.