Nesbitt Demands Federal Investigation Into MEDC Grant Tied To Whitmer Associate

(Source: MIRS.news, Published 07/08/2025) Senate Republican Leader Aric Nesbitt (R-Lawton) called for a federal investigation into what he called “the growing scandal involving the Michigan Economic Development Corporation.”

Specifically, Nesbitt said the Attorney General’s investigation has “uncovered deeply concerning details” regarding the alleged misuse of a $20 million grant awarded to Fay Beydoun, a known associate of Gov. Gretchen Whitmer.

“Official email records confirm that Beydoun communicated directly with the governor’s office to secure the grant,” Nesbitt said. “It’s now alleged that top MEDC officials not only knew about the arrangement, but also attempted to hide and withhold evidence from investigators.”

Stacey LaRouche, a spokesperson with the Governor’s office, today referred inquiries to former House Speaker Jason Wentworth, whom she said sponsored the legislative enhancement grant.

Wentworth denied seeking the money for Beydoun’s project, according to the Detroit News.

The Fiscal Year 2023 budget included $1.1 billion to create good-paying jobs across the state and to attract new businesses. Included in that allocation was $15 million proposed for a statewide international talent attraction effort as part of a competitive program under the Department of Labor and Economic Opportunity. 

During the legislative process, the Republican-led Legislature cut that line item. Instead, Wentworth sponsored a separate $20 million non-competitive legislative enhancement grant that included very specific boilerplate language about the grant recipient in the MEDC budget. 

The language said it “shall be awarded to an international business accelerator located in a city with a population of between 83,500 and 84,000 and in a county with a population of between 1,250,000 and 1,300,000 according to the most recent federal decennial census that supports the growth of the Michigan economy by attracting top international entrepreneurs to establish their companies in Michigan with a focus on next-generation medical services and equipment; agriculture; engineering, design, and development; and other technology-focused industries. Funds shall be used for the establishment of the accelerator and operating support.”

But, The Detroit News reported today that MEDC CEO Quentin Messer Jr. personally congratulated Beydoun for a $15 million program being included in Whitmer’s initial Fiscal Year 2023 budget recommendation in an email the newspaper received.

The AG’s office executed search warrants at the MEDC’s downtown Lansing headquarters in mid-June.

MEDC’s attorney wanted a judge to quash the search warrant and force the return of materials the MEDC believes are confidential under attorney-client privilege, but the judge agreed that the AG’s use of a taint team – a team of different attorneys – to review the material is appropriate.

Whitmer reportedly distanced herself from Beydoun after The Detroit News ran articles regarding Beydoun’s use of the grant, including using $4,500 for a coffee maker.

Whitmer subsequently dropped Beydoun from the MEDC Executive Committee – a position Beydoun held while chasing the grant money.

However, in a June 25 court filing, the AG included an undated email from Beydoun to Whitmer’s chief operating officer, Tricia Foster, indicating that the MEDC gave a “nod of approval as the governor requested” to secure the grant for Beydoun’s Global Link and that Messer was “aware of this.”

The AG’s filing notes that investigators interviewed a Global Link employee, who indicated “that Messer said Beydoun was ‘a friend’ and did nothing” to investigate her complaint that Global Link was operating “with no oversight and misspending money.”

The emails also indicate that Beydoun “had a series of meetings with MEDC” in summer 2021 seeking approval for her “global business accelerator” plan – meetings that occurred while she was on the MEDC board and long before the Legislature approved the appropriation itself.

Nesbitt also took issue with media reports that Whitmer “signed and sent a letter, written on her behalf by Beydoun, to Qatari officials, encouraging them to communicate with Beydoun off the record.”

The Detroit News reported that a draft letter attached to a Beydoun email that appeared to be written by the Governor invited the Qatar deputy prime minister to Michigan. 

Beydoun told Messer in an email that she had “positive discussions” with Whitmer and her chief of staff, Joanne Huls, about the Governor taking a trip to the Gulf Region, and she contacted the Qatar embassy in Washington and the U.S. embassy in Qatar, the News reported from a public records request.

Foster, who was carbon copied on the email, returned the proposed letter with the governor’s signature within a week, the News reported.

“In light of the governor’s recent travel to Qatar alongside an individual affiliated with a known terrorist organization, and the potential involvement of a foreign government, I believe there is sufficient cause for the U.S. Department of Justice and the FBI to initiate a thorough investigation into this matter,” Nesbitt said.

“A full investigation is essential to identify any potential threats or breaches and ensure no foreign entity is granted inappropriate access or influence over Michigan’s economic future,” he added.