(The Center Square) – The Michigan Economic Development Corp. announced Monday it is appealing a recent Oakland County judge’s decision, which allowed Attorney General Dana Nessel to keep MEDC documents seized as a part of its investigation into a growing scandal over grant funding.

“We have initiated the appeal process because the Attorney General’s office took privileged materials without allegation of any wrongdoing on the part of MEDC – even stating to the court MEDC is not a suspect or under investigation,” said Otie McKinley, spokesperson for MEDC. “This sets a dangerous precedent for attorney and client relationships with implications significantly broader than this specific case.”

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This comes after the AG’s office raided the MEDC Lansing office June 18 to seize relevant documents related to a Gov. Gretchen Whitmer political appointee and donor who was set to receive $20 million of taxpayer funding for her Oakland County-based nonprofit.

Following that raid, MEDC’s attorneys filed a lawsuit. They argued the three boxes of documents and laptop seized in that raid were confidential under attorney-client privilege.

Oakland County District Court Judge James Brady gave MEDC until Friday, July 11, to appeal his decision which allowed the AG’s office to begin reviewing the documents for privilege through an independent taint team. According to McKinley, MEDC informed the AG’s office on Friday it would be appealing. 

Senate Republican Leader Aric Nesbitt, R-Lawton, has called for a federal investigation into the matter due to “serious allegations of misuse of public funds, conflicts of interest and potential national security risks.”

Beydoun, a long-time political supporter of Whitmer, was serving on the MEDC executive board in 2022 at the time the grant was awarded. She filed paperwork to incorporate her company, Global Link International, just days before securing the grant.

The scandal around the grant has been growing for years, with Whitmer consistently stating that there was no favoritism at play.

While MEDC said it will continue to cooperate in any ongoing investigations.

“MEDC has been cooperating with the Attorney General’s investigation into Global Link for well over a year,” McKinley said. “Even as this appeal moves forward, we continue to cooperate with the Attorney General’s office on their investigation into Global Link.”

Beydoun’s grant funding was meant to help attract international businesses to Michigan, but was canceled in March following allegations of misuse, including a reported $550,000 salary for Beydoun and questionable expenditures such as a $4,500 coffee maker.

According to Nesbitt, email records show that Beydoun coordinated directly with Whitmer’s office to obtain the grant, including that the “governor personally intervened to ensure its approval.” He argued in a letter to U.S. Inspector General Michael E. Horowitz that a state investigation is not enough.

“While Michigan Attorney General Dana Nessel is conducting a state-level investigation into the grant’s misuse, the potential national security implications and the involvement of foreign officials elevate this matter to a federal concern,” his letter stated. “I respectfully urge your office to initiate an inquiry to ensure transparency and safeguard the public interest.”

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MEDC has upheld that there was no corruption in the Global Link grant, or its grant-making process.

“The grant to Global Link was appropriated by the Legislature – with the amount, the recipient and the disbursement schedule set forth in the boilerplate language,” McKinley said. “MEDC strives to administer these pass-through grants in such a way that we can appropriately balance clear legislative intent with stewardship of tax dollars. That continues to be our guiding principle.”