DED, Pillen no-bid contract fight with auditor heads to State Patrol, AG

By: Aaron Sanderford, The Nebraska Examiner

LINCOLN — The conflict between the Governor’s Office and State Auditor Mike Foley over Nebraska’s emergency no-bid bioeconomy contract has entered a new and more serious stage.

Foley earlier this week confirmed to the Examiner referring two audit findings to the Nebraska Attorney General’s Office and the Nebraska State Patrol for investigation and possible prosecution.

First, that the Nebraska Department of Economic Development, with input from the Governor’s Office, signed off on a $2.5 million emergency no-bid contract with a lobbyist Gov. Jim Pillen knew, Foley says.

Key for the auditor: He alleges the state did so without listing a justification of the emergency required to let the deal skip the typically required step of sending the contract out for bids.

Second, Foley forwarded his allegation that in the course of his audit, people in state government may have attempted to deceive the Auditor’s Office, which is a misdemeanor in Nebraska.

Foley said he was troubled that DED turned in a report required by June 30, 2025, only after he requested a copy in early July, and the state agency back-dated it to June 30, 2025, which Foley said made it appear as if it had met the legal deadline.

Attorney General Mike Hilgers, through a spokeswoman, confirmed receipt of those referrals, as well as receipt of a request to investigate the same contract from a former state senator.

“We have received the auditor’s referral,” said Suzanne Gage of the AG’s Office.

The referrals were confirmed to the public Thursday, during a hearing of the Legislature’s Government, Military and Veterans Affairs Committee.

Pillen spokeswoman Laura Strimple said Thursday evening, “Governor Pillen has been consistent — if a state employee engaged in illegal activity, they should be investigated and action taken if appropriate.”

The Governor’s Office has argued that Legislative Bill 1412, a 2024 budget bill that included money for the emergency no-bid bioeconomy contract the state entered, did not leave it enough time to go through the traditional competitive bidding process. Foley has argued it had more than enough time.

Editor's Note: this story was updated with comments from the governor.