The Minnesota Department of Human Services says Eric Grumdahl, who had been serving as its assistant commissioner for homelessness and housing supports, is no longer there.
A statement from DHS to WCCO on Wednesday said Grumdahl’s last day in the role was Tuesday.
This comes as Department Chair and Republican Rep. Kristin Robbins issued a statement early Wednesday morning that said in part that Grumdahl had been fired.
The DHS went on to say the reason for “an employee’s separation is not public” due to Minnesota’s Data Practices Act.
Robbins says she was notified about Grumdahl’s alleged firing on Wednesday, just hours ahead of a 10 a.m. meeting involving the House Fraud Prevention and State Agency Oversight Committee on Housing Stabilization Services and Integrated Community Supports.
“This is yet another example of DHS and the Walz Administration dodging accountability for their failures,” said Robbins. “I would have expected Assistant Commissioner Grumdahl to attend the hearing and answer questions today, but DHS never intended for him to come. While I’m glad to see they are finally starting to hold individuals running these programs accountable for fraud, doing it the day before the public hearing just shows how DHS tries to hide what is going on from legislators and the public.”
Earlier this year, a search warrant filed with the U.S. District Court for Minnesota details a fraud investigation into a “massive scheme to defraud” the state’s Housing Stabilization Services program, which is run by the DHS. The investigation concerns the Minnesota Medical Assistance benefit meant to help find and maintain homes for people with disabilities — including mental illnesses and substance use disorders — as well as the elderly.
When the program started in 2020, it was estimated that it would cost taxpayers about $2.5 million a year. But by 2021, it cost $21 million. Last year, it ballooned to $104 million. The FBI said the housing program has “proved to be extremely vulnerable to fraud,” and listed eight business locations where the alleged fraud took place, including in St. Paul, Roseville, Blaine, Little Canada and Woodbury.
Krystal Frasier
Source link