MINNEAPOLIS – Friday morning, state officials raided a Minneapolis non-profit agency loosley-connected to city hall that is supposed to “eliminate poverty” in Minnesota’s largest city.
A Minnesota state Senator, Republican Scott Newman of Hutchinson has called on Attorney General Lori Swanson to investigate Community Action of Minneapolis. The organization held an emergency board meeting Tuesday, and board members are resigning in the wake of a recent audit that revealed serious mis-spending and a directive to pay back over $800,000 in grant monies.
“Taxpayer money that should have been used to help the needy in Minneapolis has been used to provide luxurious vacations, spa treatments, and cars to leaders and board members of this organization,” Newman said. He is a candidate for attorney general in Minnesota.
“It is the statutory duty of the attorney general to oversee and investigate suspicious activities of nonprofit organizations in our state. It is further the duty of the attorney general to prosecute when appropriate.”
Among the charges against Community Action – reported by nonprofitquarterly.org – are six-figure spending for a trip to Bahamas by the agency’s CEO, Bill Davis, plus expenditures for a “celebrity cruise,” spa services, golf green fees, and a personal loan of $36,000 to the CEO to buy a car.
This week, prior to a raid on the organization’s offices Friday morning, a statement was released by Community Action, attempting to explain the audit:
“In the past few days, you may have heard some stories in the media that have shed a negative light on the organization. While the reports show only one perspective and contain inaccuracies, we are in the process of working with the appropriate parties and clarifying items that have been questioned, making adjustments where needed to strengthen our organization and move forward.
“We remain confident in our ability to provide high quality services to our low-income customers, and stay committed to our important work of empowering low-income Minneapolis residents and creating change in our community.”
Community Action of Minneapolis began in 1976 under the governance of the Minneapolis City Council. The organization, known as the Minneapolis Community Action Agency (MCAA), worked as part of the city to create and support programs to eliminate poverty in Minneapolis. These programs were in the areas of weatherization, energy assistance, self-sufficiency, clothing and commodities distribution. It has since morphed into the non-profit it is today, and rakes in massive grants to help pay for its activities.
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