LINCOLN — The Lincoln Police Department is now investigating a $2.5 million no-bid emergency contract between the Nebraska Department of Economic Development and a Lincoln contractor Gov. Jim Pillen recommended.

State Auditor Mike Foley has said the deal “smacks of favoritism.” Part of Foley’s probe also questions actions by some top staff under Pillen’s direct control, he has said.

Foley said in early February that he had referred his audit findings to the Nebraska Attorney General’s Office and Nebraska State Patrol, the latter of which answers to Pillen.

“Due to a potential conflict of interest, the case has been referred to the Lincoln Police Department,” Patrol spokesperson Cody Thomas said in an email.

‘Probable Cause To Investigate’

Nebraska Attorney General Mike Hilgers, at an unrelated news conference last week, declined to say whether his office was investigating but pointed to the office’s general process after a Foley referral.

“We review it to see whether or not there’s probable cause to investigate,” Hilgers said. “If there’s an investigation, we refer it to a law enforcement agency, they do the investigation, they come back, and then there’s charges filed or not filed.”

A Hilgers spokesperson confirmed the handoff Tuesday. Pillen’s office had no comment.

Foley said Tuesday he could not speak for LPD or the State Patrol and that under the laws governing Foley’s office, all of his office’s work material is exempt from public records but is available to law enforcement.

“All of those files have been provided to them,” Foley said.

Key Allegations

Foley handed over his findings for investigation and possible prosecution on two grounds.

First, the Economic Development Department, with input from the Governor’s Office, signed off on a $2.5 million emergency no-bid contract with a lobbyist Pillen knew in 2024, 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 contracts worth more than $50,000 out for competitive 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, after he had requested a copy in early July, and the state agency back-dated it to the due date, which Foley said made it appear as if it had met the legal deadline.

The full Legislature is likely to consider Legislative Bill 997 in the coming weeks, brought by Sarpy County State Sen. Bob Andersen at Foley’s request, which would require copies of such emergency contracts to be sent to the Auditor’s Office in addition to the Pillen-overseen Department of Administrative Services.

Pillen Defense

Pillen’s office has sought to justify the no-bid contract after the fact multiple times and in multiple ways. Pillen said on conservative Omaha talk radio station KFAB in mid-February that the no-bid element was important because “time is of the essence” for federal funds.

Foley has argued his findings clearly explain how competitive bidding could have still landed at the same contractor Pillen identified.

The governor has also denied wrongdoing and defended executive branch staff.

“There’s been paperwork omissions going on within the [Economic Development] department for way before we came into office,” Pillen told KFAB. “So, you know, paperwork omissions are criminal, I guess. I guess … somebody in our department is guilty of paperwork omissions and lack of discipline. I don’t think that’s criminal.”

Nebraska Examiner editor-in-chief Aaron Sanderford contributed to this report. This story was published by Nebraska Examiner, an editorially independent newsroom providing a hard-hitting, daily flow of news. Read the original article: https://nebraskaexaminer.com/2026/03/10/lincoln-police-now-investigating...