The North Dakota Wheat Commission has approved hiring an auditor to look into financial records of the North Dakota Grain Growers and U.S. Durum Growers over the past three years.
The Wheat Commission is seeking assurances that contract money given to the two groups was spent properly. The commission contracts with the groups for work on such matters as environmental issues and food safety, and funds the effort with money from a checkoff tax that farmers pay when they sell wheat.
The audit comes after Lance Hagen admitted that he took money from the Grain Growers and Durum Growers while serving as their executive director. He left that job in late April.
The attorney general's office says Hagen could be prosecuted for stealing more than $112,000 from the groups. The matter has been turned over to Burleigh County State's Attorney Richard Riha. He was out of the office Friday.
Hagen told auditors who documented the thefts that he took the money to play the commodities market. The growers groups say the funds have been paid back.
Wheat Commission Chairman Larry Lee said the new audit, which could cost up to $5,000, is separate from the embezzlement case. He said an earlier audit by the growers groups did not show how contract money was spent, which was what the commission requested.
"Some may perceive this as a witch hunt," he said. "It's not only our right, it appears it's our obligation."
Grain Growers President Greg Daws said an announcement on Hagen's replacement will be made next week.
He said the group also is no longer allowing staff members to write checks. Financial matters will be handled on a voucher basis through an accounting firm.
Posted in State-and-regional on Friday, June 11, 2004 7:00 pm Updated: 7:12 pm.
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