Group uses Governor Pillen contract controversy to launch business grant program

OMAHA, Neb. — As early voting gets underway in Nebraska, a government contract that has dogged Gov. Jim Pillen's administration for months is once again drawing attention in the governor's race.

A political advocacy group called Nebraskans for Accountability and Honesty has launched what it calls a "No Bid Contract" giveaway, a program that will award ten $5,000 grants to business owners and operators across the state.

The effort is designed to highlight a controversial $2.5 million state contract awarded earlier this year to a lobbyist with ties to Pillen.

Under Nebraska law, contracts worth more than $50,000 are generally required to go through a competitive bidding process. The contract in question, however, was designated as an emergency contract, allowing it to bypass normal bidding requirements.

The decision has faced criticism from State Auditor Mike Foley. According to reporting by the Nebraska Examiner, Foley noted that the section of the contract paperwork intended to explain the emergency justification was left blank. Foley later said the arrangement "smacks of favoritism."

Now, Nebraskans for Accountability and Honesty says it hopes its grant program will keep attention focused on the issue as voters head to the polls.

A spokesperson for the group said the program is intended to draw attention to what the organization views as waste and corruption in state government while also providing financial assistance to small businesses.

"Businesses in the state are being crushed by higher costs, and especially by out-of-control property taxes, and this is our way to give back just a little bit and provide some funds to businesses that apply," the spokesperson said.

The contract controversy continues to be a recurring topic for Pillen on the campaign trail.

In an interview with KMTV, Pillen defended both the contract and the process used to approve it.

"We followed every letter of the law," Pillen said. "We have several no-bid contracts. That no-bid contract yielded $307 million from the federal government."

When asked whether the process itself was flawed, Pillen said questions about the paperwork should be directed to the Nebraska Department of Economic Development.

"I don't know what the Department of Economic Development, in terms of their paperwork. That's out of my office's hands," Pillen said. "We got a great return for the people of Nebraska on that investment."

The contract remains under investigation by the Lincoln Police Department.

Nebraskans for Accountability and Honesty says applications for its grant program will be accepted through the end of October, though the group says the deadline could be extended if needed.