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Jane Richey / March 9, 2012

Stimulus Money Intended to Help 400 Actually Helped 2

A chunk of an $11 million stimulus grant meant to provide low-income Detroit residents with clothing for job interviews reportedly aided just two people — far short of the 400 job-seekers the money was meant to help.

The 2009 grant in question was used to start a service center — which included among other features a call center for families in need and a clothing boutique.

However, the audit reportedly found the department did not safeguard the funding for that boutique, which was run by a contractor. According to the report, the contractor advanced nearly $150,000 to a city clothing store without involving the city government.

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Filed Under: Constitutionally Limited Goverment, Fiscal Responsibility, Free Markets Tagged With: call center, clothing boutique, contractor, job-seekers, stimulus

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