CHARLESTON – State Senate Finance Committee Chairman Eric Tarr has sent a letter to the federal government asking it to look into the transfer of almost $30 million of federal COVID relief money to a fund operated by Gov. Jim Justice’s office that was the source of $10 million for Marshall University’s new baseball stadium.
Tarr (R-Putnam) issued a press release March 20 through the West Virginia Senate, with a copy of the letter he sent to the Office of Inspector General for the U.S. Treasury. The letter also was sent to the West Virginia Ethics Commission and the U.S. Attorney for the Southern District of West Virginia.
“Please consider this an inquiry as to whether West Virginia Governor, Jim Justice, grossly misappropriated, and misused $28,375,985.43 CARES funding provided to the State of West Virginia on non-COVID related expenses such that it would violate federal law/regulation, violate ethics standards, or would be subject to claw back at some time in the future for improper application,” Tarr wrote. “The governor converted at least more than $10,000,000 funds received from CARES Act to giveaways not even remotely related to COVID-19 and claimed it as reimbursement for Department of Corrections expenses that had already been reimbursed.
Justice
“Given this information is federal investigation warranted?”
During a February 3 Senate Finance Committee meeting, the general counsel for the governor’s office said the state faced a deadline in the fall to spend the remaining CARES Act funds or losing it back to the federal government. Berkeley Bentley said the state reimbursed itself for pandemic-related expenses for the corrections and homeland security, both of which fall under the Department of Homeland Security, with the CARES funds.
Bentley told the committee the governor’s office then considered the money to be state money, giving it more flexibility in how to use it once it was transferred to the Gifts, Grants and Donations Fund with the governor’s office. That fund was the source of $10 million in funds to support construction of Marshall’s new baseball stadium. Another $3.8 million went to the stadium from the state water development fund.
Almost $250,000 more of the money was used to pay for prizes for the Do It For Babydog sweepstakes, which was used to promote COVID-19 vaccinations. And $106,000 was used to purchase a bus for Appalachian Bible College in Beckley.
A spokesman for the governor’s office downplayed Tarr’s letter
“This letter is simply a regurgitation of old news,” Press Secretary C.J. Harvey told The West Virginia Record. “Unfortunately, Senator Tarr can’t let it go. The Governor’s Office firmly believes that all transactions involving the use of CARES Act funds were legal and appropriate.
“Decisions on the use of funds were made with the advice of legal counsel and two national CPA firms, including one who completed an independent audit and found no issues.”
Tarr disagreed, saying the matter is something “the entire state definitely should be worried about.”
“The letter itself is not really a tool to trigger an investigation because they’re already investigating the CARES money,” Tarr told The Record. “Even so, they chose to pseudo-launder these funds they said were for corrections. That’s enigmatic of how the governor operates. What the governor tends to do is deflect.”
Tarr said DHS Secretary Jeff Sandy testified during the legislative session that his department already had been reimbursed for its COVID-related expenses. Sandy also testified that he had spoken to Justice in person only three times over the course of the year. Tarr also noted the Department of Corrections and Rehabilitation has been under a state of emergency since 2020.
“The governor pushes these problems down that aren’t sexy to fix,” Tarr said. “And as a result, these executive agencies are starting to crumble.”
Tarr said the big question is what happens if the state is subjected to having some of this CARES Act money taken back by the federal government.
“Are West Virginia taxpayers left on the hook or can the governor be held personally responsible for it?” Tarr told The Record. “I’m just asking what the risk of a claw back is. And if there is one, how much?
“That’s really the heart of the matter. If there are claw backs, if there is overt misuse, does he (Justice) have a personal liability to it? There’s a severe negligence here.”
Tarr compared the governor’s Gifts, Grants and Donations Funds a petty cash drawer.
“Except it usually has $250,000 or so in it, and now it has $28 million,” he said.
Tarr said he waited until the legislative session was over to focus more on the issue.
“First, we weren’t going to get an answer from the governor’s office during the session,” he said. “Second, it took some time to put this letter together. It would have taken away from legislative duties. So once the session was done, I was able to give it some more attention.”
Justice, also a Republican, can’t seek a third term as governor, but he is said to be considering a run for the U.S. Senate seat currently occupied by Democrat Joe Manchin.