Before South Dakota’s legislative session ends in March, state lawmakers will consider various pieces of legislation designed to help prevent government fraud, but those same bills are also raising questions about how far a state should go.
One of the bills being discussed (SB 60) would expand the investigative reach of the state auditor.
Attorney General Marty Jackley supports the bill and referred to the state employee fraud cases his office has been prosecuting during the past six months.
“The Attorney General has brought five criminal cases. These investigations range from significant amounts of alleged $1.8 million to less significant amounts but still important taxpayer dollars.”
In advancing SB 60, a Senate committee added an amendment that excludes political subdivisions in giving the state auditor access to their accounts. It was seen as a way to alleviate concerns about the motivations of future investigations.
However, Karl Adam, president of the South Dakota Bankers Association, told the panel that’s one of his big concerns.
“This risk is especially high in politically charged environments, where investigations could be launched not based on merit, but on political motives, targeting opponents or shielding allies.”
Jackley says the state auditor needs more flexibility to access the accounts and other financial records for all state agencies when looking into suspicious behavior. However, the South Dakota Bureau of Finance and Management commissioner said existing state controls are catching such activity and additional resources are coming on board to help close current gaps.
Story courtesy of the Greater Dakota News Service.
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