Michigan Senate minority leader asks Bondi to review state agencies, Dearborn nonprofits

Michigan Senate minority leader Aric Nesbitt has asked for a federal review of three state agencies and two non-profit organizations based in Michigan over how public grant money was used. 

Nesbitt sent a letter Wednesday to U.S. Attorney General Pam Bondi, through which he formally called for the U.S. Department of Justice to "review grant oversight and administration" of the Michigan Economic Development Corporation, the Michigan Department of Health and Human Services and the Michigan Department of Labor and Economic Opportunity; along with Dearborn-based nonprofits ACCESS Michigan and the National Association of Yemeni Americans.   

Nesbitt says his intention for a review is to ensure that Michigan tax dollars are handled with transparency and accountability. 

"We need a government that consistently puts Michigan families first," his statement said. "To truly make it in Michigan, we must ensure any potential for waste or mismanagement is addressed. With the support of our federal partners, we can seek the necessary answers to protect the integrity of our state's financial systems." 

Nesbitt is a Republican from District 20/Porter Township and is among the candidates running for Michigan governor. 

Allegations made by Nesbitt 

In his letter, Nesbitt said, "the situation surrounding the National Association of Yemeni Americans suggests a significant lack of financial accountability that warrants federal attention."  

Nesbitt asked whether the organization's recent federal tax returns were filed in a timely manner and whether "health-dedicated funds might be utilized to provide services to people residing in the United States illegally." 

CBS News Detroit has reached out to the National Association of Yemeni Americans for a response. 

Nesbitt also asked for clarity regarding funding requests for the National Network for Arab American Communities, saying he wanted to ensure the money is not utilized for partisan activities. 

"Given that the NNAAC may engage in partisan advocacy, I believe it is essential to ensure that taxpayer-funded infrastructure is not utilized to support political operations," he wrote. 

The National Network for Arab American Communities is a nonpartisan institution of the community nonprofit ACCESS Michigan. In response, ACCESS issued a statement that reads, in part: 

"We abide by the letter of the laws governing all nonprofits and are a gold-standard in accountability, with full compliance to our funding requirements, including regular reviews and internal and external audits for all of our funded programs. We have always welcomed Congressional oversight as a standard tool of responsibility and have been consistently regarded for our effective and efficient service model." 

Nesbitt is claiming oversight gaps by MEDC, MDHHS and LEO for state and federal funds that were approved for allocation. 

"The purported failures of these organizations may reflect a broader lack of oversight by the state agencies responsible for fund administration," he wrote. "It is the responsibility of LEO and MDHHS to ensure that federal pass-through dollars are not allocated to entities with significant tax-filing gaps." 

Nesbitt also had questions about federal and state money that was intended for adult care in the Dearborn area, citing concerns that he said were raised by independent journalists. 

"Given the severity of these allegations, it is imperative to determine if the reported fraud has compromised the quality of care provided to residents. A federal review would ensure that taxpayer dollars are being used for their intended purpose," he wrote.