A state budget official conceded Friday that Bobby Ferguson’s nonprofit group was not restricted from spending a $250,000 grant renovating his office or limited in how the money was spent.
“The only stipulation is the funds be fully spent within three years, isn’t that correct?” Ferguson lawyer Susan Van Dusen asked.
“Correct,” state budget official Lisa Shoemaker testified.
Shoemaker earlier testified the state was concerned about how Ferguson’s group, Detroit 3D, spent a $250,000 grant steered to it by Kwame Kilpatrick, who was a state representative at the time.
The group paid Kilpatrick’s wife $100,000, according to testimony.
Shoemaker conceded under cross examination that Detroit 3D had sole responsibility for how the money was managed.
“It doesn’t say anything about renovating or providing a training facility is prohibited, does it?” Van Dusen asked.
“No,” Shoemaker said.
“It doesn’t give any guidance to the recipient of the grant that they can’t do that, correct?” Van Dusen asked.
Shoemaker said state officials expected the grant money would be spent on economic development and aiding youths and seniors .
The state eventually yanked a second $250,000 grant payment after becoming concerned about how Ferguson’s group spent the money, including the $100,000 payment to Carlita Kilpatrick.