Arizona Commerce Authority missing data on corporate incentives, audit finds

Bob Christie

Capitol Media Services

A new report reveals that the Arizona Commerce Authority could not show that it confirmed that companies that received nearly $11 million in incentives proved that they invested the money or hired the workers they promised at the agreed-to wages.

And Auditor General Lindsey Perry said that’s a problem.

“ACA’s lack of verification documentation increases risk of fraud and waste of public money,” she said in her report to the Arizona Legislature. And she said the agency “lacks oversight and accountability mechanisms for ensuring businesses meet job creation and capital investment requirements.”

What makes the finding crucial is that ensuring the Commerce Authority confirmed that information was a key part of the legislation that created the unique agency in 2011. Not doing so – or at least being able to prove it – brought a sharp rebuke from former Gov. Jan Brewer, who championed its creation when she led the state.

“That’s wrong,” Brewer told Capitol Media Services. “We need that data to see what our return is, and if you don’t have it, obviously you can’t prove anything, right?”

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