Waste of the Day: Chips Are Down In Ohio
Federal money meant to help Ohio manufacturers was spent on ghostwritten articles, golf outings, poker chips, T-shirts and a celebrity who was paid almost $16,000 to attend a virtual event without speaking.
The Department of Commerce inspector general questioned $20.9 million in spending, according to an August audit. The program has received almost $52 million from the National Institute of Standards and Technology, part of the Commerce Department, since 2016.
Key facts: The federal money came from the Manufacturing Extension Partnership, a program meant to help manufacturers create jobs and adopt new cost-saving technologies.
One recipient, MAGNET, spent $402,135 on public relations and video production, including $18,210 for ghostwritten articles published under its president’s name and $5,743 for the rights to use a photograph of a local professional athlete, the audit found.
MAGNET spent another $60,252 on a groundbreaking ceremony featuring catering, landscaping, staging, live music and entertainment, according to the audit.
Questioned purchases from other companies included T-shirts, golf balls, journals, poker chips, sunglasses, pens and mugs. Taxpayers also funded golf events and a Chinese New Year celebration that included cocktails and tickets to a basketball game, the audit found.
Auditors also questioned $9 million sent to TechSolve from 2021 to 2024 because the organization repeatedly failed to meet performance goals while continuing to receive funds. TechSolve had not been audited in years, even though recipients are required to be audited annually.
The program’s reported results were questionable, too. One manufacturer affiliated with a MAGNET board member reported the exact same results for three consecutive years: $60 million in new sales, $25 million in savings, and 200 jobs created. MAGNET could not provide documentation explaining how those identical results occurred.
The White House suspended Ohio’s program participation in December 2025.
Summary: A federally-funded program with limited oversight is just as much of a gamble as sitting down at a casino table.
The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com.
