MIDLAND, Mich. — Michigan Rising Action and the Mackinac Center for Public Policy are fighting back against clear abuses of transparency and accountability by the Michigan Economic Development Corporation. A lawsuit filed today challenges the corporation’s flagrant violations of the Freedom of Information Act and raises concerns about the agency’s dedication to transparency.

On May 29, 2024, Michigan Rising filed a FOIA request asking for the MEDC’s communications with American Lidar Inc., a Michigan company linked to the Chinese Hesai Group. As one of the state’s main business subsidy distributors, the corporation decides which select companies receive taxpayer-funded handouts. The MEDC responded nearly a month later on June 20, with a fee estimate of $593.48 and an estimated processing time of sixteen hours to produce around 1,200 records.

Michigan Rising paid a 50% deposit on July 2, 2024 and the MEDC quietly cashed the check on July 19. But the corporation did not produce any documents and failed to respond to follow-up inquiries, remaining uncommunicative until August 29. On that date, it acknowledged receipt of payment but failed to provide an expected completion date or other updates.

“This is a willful effort to conceal from public inspection activities and discussions the MEDC is having that the public may not like,” said Abby Mitch, executive director of Michigan Rising Action. “This is a fair concern, as MEDC’s two flagship investments – Gotion and Ford CATL – have received nationwide public backlash. But the simple fact is that it should not take the threat of a lawsuit to get MEDC to follow the law.”

The MEDC’s conduct violates Michigan’s transparency laws, which are intended to provide the public with prompt access to government records. While public bodies are permitted to issue time estimates for FOIA requests, they must be made in good faith and should reflect the public body working diligently to complete the request. The MEDC’s prolonged delays and lack of communication suggest a cavalier attitude toward transparency and raise serious concerns about whether the corporation is intentionally dragging its feet to avoid disclosure.

“The lack of transparency shown by the MEDC in this case is deeply troubling,” said Steve Delie, director of transparency and open government at the Mackinac Center. “Public records belong to the public. They should be readily accessible in a reasonable time period and at a reasonable cost. The delays our client encountered make it clear that the MEDC is falling short of that standard.”

View the complaint here.