South Dakota among states debating tricky issue of combating government fraud
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A South Dakota legislative committee Monday debated proposals designed to help combat government fraud and there were clear differences of opinion on whether a key office should be given more powers.
Senate Bill 60 is one of a handful of measures this session following recent examples of former employees at various state agencies being accused of abusing their position for financial gain. The bill would expand the investigative reach of the state auditor.
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Marty Jackley, South Dakota Attorney General, testified in support of the plan, noting his office has been busy with such cases.
"The Attorney General has brought five criminal cases," Jackley pointed out. "These investigations range from significant amounts of alleged $1.8 million to less significant amounts but still important taxpayer dollars."
Jackley argued the auditor needs more room to access the accounts and other financial records for all state agencies when looking at suspicious behavior. However, the Bureau of Finance and Management commissioner said existing state controls are catching such activity and additional resources are coming on board to help close gaps. Retail and banking leaders worry the plan would lead to government overreach.
In advancing the bill, a Senate committee added an amendment to exclude political subdivisions in giving the auditor account access. It was seen as a way to alleviate concerns about the motivations of future investigations.
Karl Adam, president of the South Dakota Bankers Association, told the panel it is 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," Adam asserted.
In neighboring Minnesota, combating fraud is a big topic this year with outside rings accused of providing phony medical-related services for reimbursements. There are debates about tightening controls but also keeping social safety programs accessible.
