Red-state auditor reports 'explosion' of fraud tips as he targets state employees 'racking up' taxpayer waste
Nebraska’s top auditor says fraud complaints are surging as waste, fraud, and abuse dominate the national conversation, telling Fox News Digital that his own crackdown has uncovered alleged misuse of taxpayer resources inside state government.
"It’s just extraordinary the explosion of phone calls and allegations and emails and so forth that are pouring into my office," Nebraska State Auditor Mike Foley said as the fraud crackdown have become a national news story and the Trump administration, led by Vice President JD Vance, unleashed a task force to root out fraud.
"And as the media focuses on this more and more, it just makes the phone ring all the more, which is fine. We’re happy to receive those calls and try to filter through them and find out which ones are the most legitimate ones for us to pursue. But it’s clearly on the rise."
Foley, speaking with Fox News Digital from the State Financial Officers Foundation conference in Clearwater, Florida, is sounding the alarm specifically on what he says is an issue with taxpayer money being wasted or possibly defrauded by state workers, which he has made efforts to crack down on.
"Many of our state vehicles are now equipped with a GPS tracker," Foley explained. "We can see precisely where these state vehicles are really going during work hours and they're going to liquor stores. They're going into health appointments that the employee might have. They're on personal errands all across the state, and it's racking up a lot of expense for the taxpayers in a very improper way."
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Foley’s office reviewed GPS data from 45 state fleet vehicles and found employees allegedly using them for "trips to retail outlets, restaurants, medical facilities, residences of relatives, commuting home without permission and other private errands," the Nebraska Examiner reported last year.
Foley put out a press release last year documenting how he uncovered what he described as a "disturbing uptick" in alleged financial improprieties across local governments statewide, detailing eight recent investigations involving suspected misuse of public money, questionable reimbursements and possible fraud.
"I can cite so many examples of contractors that are over billing or double-billing the state, all kinds of state employee infractions of using state vehicles and state assets improperly, having contractors bill us for hours which we know they did not work, having state employees billed us for time served when we know that they were at a different place of employment, public school districts that are milking public school funds for all kinds of extravagances and so forth, but at the end of the day, the tone has to be set at the top."
At the top, Foley’s efforts on waste, fraud, and abuse have led him to a situation that he describes as "uncomfortable," which has put him at odds with Nebraska’s Republican Gov. Jim Pillen.
Foley has been involved in a highly publicized debate with Pillen, arguing that the governor improperly awarded a no-bid state contract worth roughly $2 million to a consultant with ties to the governor. Nebraska law generally requires public bidding for contracts over $50,000 and says the administration wrongly claimed there was an "emergency" to bypass that process.
"There was no emergency and later now they're claiming that she brought in hundreds of millions of dollars in grant awards," Foley said. "The truth is those grant award applications were filed by other people, other contractors before she was even on the job. So this is a very, very serious abuse and it sets the tone in the wrong way. For other people in the state government who can say the governor can do that, I can do it too. And that's wrong."
Pillen’s administration has denied wrongdoing, maintaining the contract was justified because of the need to quickly pursue economic development opportunities and federal funding.
"The contract was done the right way and is bringing hundreds of millions of dollars of value to Nebraska, which otherwise would have been wasted in California," Pillen spokesperson Laura Strimple told Fox News Digital. "Auditor Foley disagrees and he is entitled to his opinion."
Foley has referred the matter to law enforcement for further review, saying his office’s role is limited to conducting audits and highlighting potential violations.
"I’m not the most popular person in state government," Foley jokingly told Fox News Digital, but said "we must" track expenditures in order to safeguard taxpayer funds.
"Nebraska regrettably is a high-tax state and people know that, and they're fed up with these high taxes, and they know that money is not being spent properly in so many instances, and they are relying on me and my office to catch this kind of thing, and we're doing a good job," Foley said.
"There needs to be consequences when we find these kinds of abuses, and there are. Many people are losing their jobs because they've abused the trust of having access to a credit card or other assets of the government, or there could be even further legal complications and infractions and jail sentences even. We've put a number of people behind bars because of abuse and stealing of public funds."