HARRISBURG, Pa. (CBS) — Pennsylvania’s auditor general says his review of spending by the Host Committee of last year’s Democratic National Convention shows that wording of the agreement for a $10 million state grant was flawed.
The review was done at the request of Gov. Tom Wolf and state Senate GOP leaders after more than $1 million in bonuses were paid by the committee.
Auditor General Eugene DePasquale says former Gov. Ed Rendell should have gotten approval of the Host Committee board before bonuses were paid, but as to whether any state money was misused, DePasquale says no, because the Department of Community and Economic Development contract for a $10 million grant did not contain a so-called “claw-back” provision requiring that private money be expended before state money was used.
“No contract in the last 10 years has ever included a claw-back provision,” he said. “Not one.”
DePasquale says the Host Committee is not required to pay back any money but that he has made a referral to the IRS. He says the fact that two members of the Bid and Host committees received payouts raises issues about compliance with non-profit law.