SIOUX FALLS, S.D. (KELO) — The latest investigation, which the Attorney General’s office is calling a “criminal matter,” is the third this summer involving state employees.
The Department of Revenue says new policies uncovered an act of suspicious activity by an employee. After looking into the matter, the employee was fired, and the case was turned over to the Attorney General and the Department of Legislative Audit.
So far, no charges have been announced. This follows two other cases.
In July, Attorney General Marty Jackley announced that a former Department of Social Services employee stole more than $1.7 million. 68-year-old Lonna Carroll pled not guilty in Hughes County Circuit Court.
In early August, an employee who is now deceased is accused of creating phony titles for campers and securing around 400 thousand dollars from banks and credit unions.
Since the state employee is deceased, no charges were filed.
These cases are cause for concern among lawmakers, especially those serving on the Government Operations and Audit Committee. Representative Linda Duba says many state agencies are working with antiquated systems.
“And our overall protocols and processes are obviously not where they need to be,” said Linda Duba.
The Department of Revenue is moving to a new system in about six months. In a statement to KELOLAND News on Friday, a deputy director said in part.
“The new 605 Drive motor vehicle system, which was proposed by the Governor and passed into law by the legislature, will further enhance protections for taxpayer dollars.”
“We didn’t buy that system because of this,” said Duba. “But, obviously, what we need to make sure of and look at is, are there being rules built into that system to ensure that the person who is fulfilling the title request is not able to do what’s happened here? That can happen.”
State lawmakers on GOAC are scheduled to discuss fraud and embezzlement issues at the Departments of Social Services and Revenue at their October meeting.
A new accounting system for the state called Bison is also in the works. It is scheduled to be up and running by 2027.
