Feds suspend Flint's energy grants | Michigan Radio

Feds suspend Flint's energy grants

Jul 26, 2011

The federal government will suspend two energy grants in the city of Flint because of the potential misuse of funds.

Investigators from the U.S. Department of Energy are investigating stimulus funded grants dating back to 2009, according to the Flint Journal.

Flint Mayor Dane Walling said his office is cooperating with the probe and has launched investigations of their own into the energy grant programs:

Walling said his office received notice last week that the grants will be suspended as of Friday, July 29. The notice cited the ongoing investigation and possible issues with compliance, procurement and allowable costs, he said.

Walling said he wasn't aware of what spurred the action from the feds. He pointed out that the energy department's inspector general is handling dozens of audits of energy grant programs across the country.

"We have no details on specifics from the Department of Energy at this point," Walling said.

A federal grand jury has convened as part of the investigation. The Flint Journal reports that
"subpoenas issued to four city departments in May demanded more than two years worth of documents, check stubs, emails and audio and video recordings of city dealings."