State panel abruptly ends contract of Michigan economic development agency watchdog

Beth LeBlanc, The Detroit News on Nov 4, 2025

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A state panel voted Tuesday to end the contract of an independent watchdog tasked with ensuring legal compliance for the past 12 years within the Michigan Strategic Fund, an arm of state government that directs the state's largest job-creation incentive programs.

The decision, made during a four-minute meeting of the State Administrative Board, comes as the state's economic development decisions are under significant scrutiny and calls for more oversight. The end of the contract with the chief compliance officer means the agency will be left without a chief compliance officer for the near future.

The vote, which was unanimous, involved no discussion of the agenda item or explanation of why Chief Compliance Officer Kevin Francart's contract was terminated. Francart's term runs through Sunday.

The Michigan Economic Development Corporation said in a statement it was grateful for Francart's service and looked forward to the State Administrative Board naming a new chief compliance officer "as quickly as possible."

"The MEDC remains committed to continued compliance, transparency, and accountability in our work to support Michigan's growth and economic resilience," said Danielle Emerson, a spokeswoman for the MEDC.

Emily Paski, a representative of Gov. Gretchen Whitmer and the chairwoman for the State Administrative Board, directed questions about the vote to Whitmer's spokeswoman, Stacey LaRouche, who was at the meeting but declined to answer any questions regarding the decision to end the contract. Paski is a lawyer in the governor's office.

Francart, who is an attorney, also declined to comment.

There was no meeting packet or other communication provided to the public that explained why the contract was being ended.

The timing of the decision to end the contract — while the agency is under intense scrutiny for its management of taxpayer-funded business grants and incentives — is “interesting,” said state Rep. Jay DeBoyer, a Clay Township Republican who chairs the House Oversight Committee.

“It just seems ironic to me that in the middle of all this you’re cutting the compliance guy loose,” DeBoyer said. “It raises eyebrows.”

Francart has worked as the chief compliance officer for the Michigan Strategic Fund since November 2013, when he was appointed by the administrative board during the first term of Republican former Gov. Rick Snyder. The office is considered an autonomous entity within the MSF that is independent of the board, the Department of Labor and Economic Opportunity and the Michigan Economic Development Corp.

The office is meant to help create policies and procedures that detect and prevent any illegal, unethical or improper behavior within the Michigan Strategic Fund, a sort of whistleblower within the state agency tied to the MEDC.

The office answers only to the State Administrative Board, which is made up of individuals representing state officials such as Whitmer, Lt. Gov. Garlin Gilchrist II, Secretary of State Jocelyn Benson and Attorney General Dana Nessel.

The agenda item approved Tuesday stopped the automatic renewal of the contract between the Department of Technology, Management, and Budget and the Michigan Strategic Fund's chief compliance officer. The automatic renewal of the contract had been put in place by the State Administrative Board in 2015 and the contract was set to renew for another two-year term starting Monday.

The board on Tuesday also directed the Department of Technology Management and Budget to immediately put out a request for proposals for the position.

Francart is eligible to reapply for his job of 12 years, said Laura Wotruba, a spokeswoman for the Department of Technology, Management and Budget.

"Moving forward, all qualified parties — including the current chief compliance officer — are welcome to apply through the competitive process applied to all State of Michigan jobs," Wotruba said.

Benson's office said it was guided by principles of transparency and fairness to end the automatic renewal of the contract.

"As a general matter of good governance, (the Secretary of State's office) supports competitive processes for contracted services with specified end dates and voted accordingly in this matter," Benson spokeswoman Angela Benander said.

Nessel's office said it found no reason to reject the request to end the automatic renewal of the contract.

"Civil service rules limit employment contracts to specific terms and require that a new contract be entered after the term expires, and this request appeared consistent with those rules," said Danny Wimmer, a spokesman for the agency.

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