An internal review by the federal agency that provided former state Rep. Stephen LaRoque with the money that led to his indictment criticizes the North Carolina operation on several fronts.
The U.S. Department of Agriculture's Rural Development division, in a report delivered to the Raleigh office in April and obtained by The News & Observer this week, faults the state office for inadequate oversight and for loan delinquencies. The state has reported $34.6 million in lost federally guaranteed loans and poor internal control over one loan program "has raised concerns in the national office," the report says.
But the report, which gives passing marks to some of the agency's practices, raises issues that for years have dogged some of the loan programs and are not limited to North Carolina.
The review is posted below.
NC FY 2011 BCPAR.pdf