Pennsylvania audit to determine whether lobbyists, legislators influenced business waivers

There have been numerous cases in which the state granted waivers allowing some businesses to operate during the state’s coronavirus shutdown while other, similar businesses were denied, according to state Auditor General Eugene DePasquale.

That’s not an inherent sign of improper behavior by the state Department of Community and Economic Development, but it does raise questions, he said.

“There may be very valid reasons, but that’s something that comes up as a concern,” DePasquale said at an online press conference Thursday.

His office has found a “significant” number of lobbyists and legislators advocated on behalf of specific businesses. Auditors will work to determine whether this influenced waiver decisions.

“I’m not saying that happened, but that is something we’re going to be examining,” he said.

His office received more than 100 complaints from business owners as it conducts an audit on the waiver process.

It’s early in the audit process, and DePasquale had few specific details to share, but he outlined the process and highlighted some of the early priorities.

His staff will meet with DCED officials next week.

DePasquale said he expects the audit to be relatively straightforward, though he did not provide an estimated completion date.

While business complaints have come from all sectors of the state economy, a plurality have come from real estate firms, he said.

The audit will compare the state’s criteria for determining “life-sustaining” business to that of the federal government.

It will determine whether DCED employees were given adequate training on the waiver process.

“We want to make sure that everyone who was answering those phone calls and answering those emails, that they were given the same training and the same instruction,” DePasquale said.

Many Pennsylvania businesses are reopening this month as the state gradually lifts its shutdown regulations. Many more will likely be open by the time the audit is complete. For individual business owners, the audit will probably be too late to address their specific waiver concerns.

However, the audit will provide valuable guidance for the future if the state ever needs to enact a mass shutdown again, DePasquale said.

“I want to make sure the waiver process truly reflects the delicate balance between protecting lives and protecting livelihoods,” he said.

Any specific cases where businesses were unfairly granted or denied waivers will be referred to the appropriate agencies, DePasquale said. If any unfair denials are found, it will be up to the state to determine whether business owners will receive any recompense, he said.

State Senate Republicans asked for an audit April 29, saying the waiver process lacked transparency. DePasquale announced the audit the following day.

Gov. Tom Wolf welcomed the audit. He said that about two-third of businesses that applied for a waiver got one.