From article:

Shoemaker said that when the state learned of Carlita Kilpatrick's involvement with the grant, it yanked the second half of the grant from Detroit 3D.

"We had things that were obviously a concern to us," Shoemaker said. "We had things that were not documented correctly."

More Details: Day 5 of the Kilpatrick trial: State suspicious of grant spending

A state budget analyst was the only witness to testify Friday in the public corruption trial involving ex-Detroit Mayor Kwame Kilpatrick and three others. The three-hour long testimony centered on how Kilpatrick, as a state legislator, helped funnel a state grant to his wife and friend when the money was supposed to help kids and senior citizens. Also at issue was why the state never asked for the money back.

• GRANT YANKED: State budget analyst Lisa Shoemaker testified that the state yanked half of a $500,000 grant from a Detroit nonprofit after learning a company run by Kilpatrick’s wife received $100,000 from the first installment. The rest of that money went toward refurbishing Kilpatrick friend Bobby Ferguson’s office and buying a house, according to testimony.

• NO MONEY RETURNED: When asked why the state didn’t try to recover the money, Shoemaker said officials felt there was little chance of getting the money back. Instead, the state refused to give the nonprofit the second installment of $250,000.

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