The Times West Virginian

West Virginia

July 20, 2012

Feds investigate W.Va. broadband spending

Associated Press

CHARLESTON — West Virginia’s use of $126.3 million in stimulus funds to expand broadband in the state is under investigation by the Department of Commerce’s Office of the Inspector General.

The investigation will determine whether the funding was spent “properly and efficiently” and whether there were any “material misrepresentations” in West Virginia’s application for the money, according to a letter released by the inspector general’s audit division.

The Charleston Gazette reported the investigation in Thursday’s editions. The review began July 13 and is expected to take eight months to a year.

The investigation was requested by two Republican congressmen, Oregon Rep. Greg Walden and Illinois Rep. John Shimkus, after the newspaper published reports raising questions about the state’s stimulus spending.

Walden is chairman of the House Subcommittee on Communications and Technology, and Shimkus is chairman of the House Subcommittee on Environment and the Economy.

“I am pleased that our concerns about this spending are being investigated,” Shimkus told the newspaper. “We just wanted answers, and this seems to be an appropriate step to determine if any policies were violated.”

Their concerns include the state’s use of $24 million to buy more than 1,000 high-powered Internet computer routes.The routers are designed for college campuses and other large entities. The state has installed them in rural schools, small libraries and health clinics.

West Virginia Homeland Security chief Jimmy Gianato said state officials will cooperate with the investigation. Gianato is leading the state broadband project.

“We are happy to assist the inspector general and provide any needed information,” he told the newspaper. “We believe we have a good grant and believe this is going to give great opportunities to all West Virginians.”

West Virginia’s grant is overseen by the National Telecommunications & Information Administration. Leaders of the agency were scheduled to with the inspector general Thursday.

“As always, we will work cooperatively with the inspector general’s office as they conduct their review,” an NTIA spokeswoman told the newspaper. “We thoroughly reviewed this application before awarding the grant and continue to believe this project will bring much-needed benefits to the people of West Virginia.”

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