Illinois wants Gigabit Squared to return $2 million grant

The state of Illinois is fighting to take back $2 million in grant money it awarded a company that promised to install ultra-high speed Internet access throughout the South Side of Chicago.

Gigabit Squared, a Cincinnati-based company that last May touted the high-speed project in nine South Side communities, “has lied repeatedly” about its intentions and may have spent only $250,000 of the grant money for legitimate purposes, said David Roeder, spokesman for the Illinois Department of Commerce and Economic Opportunity, which issued the grant. The state agency has tried since January to get the money returned. Roeder said Gigabit Squared failed to give the state the information it needed to trace how the money was spent, and “we have no patience with this abuse of the public’s trust.” The state sent a letter to Gigabit Squared asking whether they want to seek an informal hearing on the dispute. The company has until April 10 to respond. Gigabit Squared issued a statement, saying in part: “Gigabit Squared’s new leadership team has a proactive, open, and honest dialogue with the State of Illinois to move towards a positive resolution of the project. This has included access to the company, its records, leadership, and meeting every deadline provided as part of the State’s normal review process. We are particularly puzzled by the comments regarding our delaying the process which is contrary to both verbal and written comments from the State indicating its appreciation for our openness and cooperation during this process.”