Gov. Sonny Perdue asked the state's inspector general to open an inquiry into the Augusta Neighborhood Improvement Corp.'s use of $20 million in state grant money Tuesday.
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The inspector general's office expects to review the request today to determine whether an investigation is warranted, said Shane Hix, Mr. Perdue's deputy press secretary.
Mayor Bob Young delivered a letter to the governor three weeks ago questioning the expenditures of the corporation and criticizing the financial stewardship of its oversight agency, the Development Authority of Richmond County.
His request followed news reports that the agency had paid $42,000 for what state officials determined were bogus performance bonds on its $1.7 million office building on Laney-Walker Boulevard.
Mr. Young contends that state taxpayers are "due an accounting" of ANIC's state grant money through a detailed audit.
Mr. Young said Wednesday that he was glad the governor was pursuing his request.
"If we didn't believe there was merit to the information we were seeking, we wouldn't have made it in the first place," he said.
"We'd all like to know how an original $3 million for the Augusta Common shrank to $750,000."
The original project list prepared by Augusta Tomorrow and delivered to then-Gov. Roy Barnes called for $3 million for the Common and for other projects that were later deleted or reduced in scope in favor of others.
In 2000, when the Georgia Department of Community Affairs questioned the eligibility of some of the proposed projects, lawmakers changed the language in the grant to fit what the money would actually be used for.
The revised language allowed the money to be used to "promote tourism, community and economic development, housing and medical research and health-care facilities" in Augusta, including administration and land acquisition, improvements and other capital outlay and development costs.
Before the construction of downtown's Augusta Common, ANIC committed $750,000 to the project.
Robert Cooks, ANIC's president and chief executive officer, did not return phone calls to his office Wednesday but said earlier his agency has been audited a number of times with no problems.
Reach Sylvia Cooper and Heidi Coryell Williams at (706) 724-0851 or newsroom@augustachronicle.com.
