LANSING — In her first public statement regarding an ongoing investigation into the alleged misuse of taxpayer funds, Governor Whitmer has called on State Attorney General Dana Nessel to recover $8.2 million from a $10 million grant received by Arab American businesswoman Fay Beydoun through a nonprofit she founded in 2022, which was intended to attract foreign startups to Michigan.

Whitmer had originally approved a $20 million grant to Beydoun’s company, Global Link International, as part of the state’s 2022–2023 fiscal year budget. A first installment of $10 million was disbursed before suspicions of corruption and misuse of taxpayer money surfaced. These concerns stemmed from financial reports from the nonprofit organization Beydoun created shortly after the grant’s approval, including the purchase of a $4,500 luxury coffee machine and an “unreasonable” annual salary of $550,000 allocated to Beydoun.

Responding to criticism regarding her role in authorizing the grant, Whitmer broke her silence and told reporters she was pleased with the decision by the Michigan Economic Development Corporation (MEDC) last March to cancel the second $10 million payment.

“I’m glad they canceled it, and I’m glad they’re working to recover the funds,” she said. “I hope the attorney general helps in this effort.”

Although the MEDC has requested the return of unspent funds from the initial payment, the state has not yet received any reimbursement from Beydoun.

“The funds have not been returned despite the promise to do so,” MEDC Media and Communications Manager Otie McKinley  told the Detroit Free Press. “We are still evaluating all our options.”

The investigation into the “Global Link” grant took a more serious turn following a June raid of Beydoun’s home in Farmington Hills and the Lansing headquarters of the MEDC. The raid was conducted by order of Attorney General Nessel’s office, which confirmed that the “Global Link” grant was under investigation.

During a visit to Detroit last week, Whitmer expressed “deep concern” over reports that some legislative grants, including the one awarded to Beydoun, may have been misused, emphasizing that taxpayer funds must be protected and any waste should be met with accountability.

While Assistant Attorney General Matthew Piwowar stated in a recent court hearing that the MEDC is not a target of the investigation, media reports have speculated about Whitmer’s involvement in facilitating the controversial grant to Beydoun, citing their close relationship and Beydoun’s role as a campaign fundraiser for the governor.

At the time of receiving the grant, Beydoun had been appointed by Whitmer to serve on the MEDC board and was also serving as executive director of the American Arab Chamber of Commerce. The Chamber, according to its officials, was the intended recipient of the grant. However, Beydoun instead routed the funds through her newly formed organization, Global Link International.

Case files include an email from Beydoun to Tricia Foster, Whitmer’s chief operating officer, claiming MEDC’s approval of the grant proposed by the governor as part of the executive budget before it was adopted by the legislature.

Notably, Whitmer’s original proposal had recommended allocating $15 million for a competitive grant program to “attract international and startup companies to Michigan or to relocate their headquarters to the state.” However, Beydoun ultimately received $20 million in a grant listed under the sponsorship of former Republican House Speaker Jason Wentworth, who later denied any involvement in the matter, according to the Detroit News.

When asked whether she or her staff played a role in securing the grant for Beydoun, Whitmer declined to comment on an active investigation but differentiated between her proposed grant and the one awarded to Beydoun.

“Every year, I submit an executive budget that includes priorities benefiting everyone in Michigan,” she said, stressing her commitment to “ensuring not a single taxpayer dollar is wasted, that there’s no fraud, and that there is real accountability.”

Whitmer added that her budget proposals generally do not include individual earmarks and that she prefers competitive grant processes subject to review and bidding.