NC investigators probe State Treasurer Dale Folwell over use of state vehicles

State Treasurer Dale Folwell, a longtime Republican politician who refers to himself as the “keeper of the public purse,” is being investigated for the possible use of state-owned vehicles for commuting and personal errands.

North Carolina investigators launched a probe in March after the state Department of Administration’s Motor Fleet Management division conducted a compliance review of travel logs associated with state-owned vehicles. The spot-check looked at trips taken in July, November and December of 2022.

During that period, at least three state vehicles operated by Folwell traveled to medical offices, a country club, residences, church, fast-food restaurants, a hot yoga studio, hotels, the Biltmore Estate and Republican Party offices throughout the state, according to a search warrant application filed June 12 in Wake County. Investigators said he may have used a state purchase card to fuel vehicles that were then possibly used for personal reasons.

State vehicles are only to be used for state business or approved commuting. Investigators said they had reason to believe those trips violated that rule.

The use of a state-owned vehicle to travel to campaign events or political offices could violate campaign finance laws, depending on the nature of the trip or how or if use of the vehicle was reported. Folwell was a Republican candidate for governor in one of the months reviewed by the Department of Administration. He lost in the March primary and isn’t running for State Treasurer in November.

Folwell hasn't been charged. In a brief interview Wednesday afternoon, he told WRAL that he hadn’t yet seen the warrants. He said he has been careful about his use of state cars, often transferring between state and personal vehicles. He also said he didn’t recall using a state vehicle for campaign reasons. Folwell said he believed he was compliant with state guidelines and that his trips would be considered approved use of a state vehicle. “But I’m not perfect,” he said.

“I've always tried to use the state vehicle in the best interest of doing my duties as the State Treasurer, and in the most efficient way," Folwell said, adding that he would review the documents filed by investigators.

Wake County Prosecutor Lorrin Freeman asked the North Carolina State Bureau of Investigation to probe Folwell’s use of state vehicles in March — less than a year after the state motor fleet started its review of vehicle use.

“There is currently an investigation going on based on a report that we're supposed to receive following a routine audit by the Department of Administration into vehicles assigned by the Motor Fleet Management agency of state government,” Freeman said in a telephone interview Wednesday.

State law requires that evidence uncovered during a routine audit that could amount to the misuse of state property be reported to the North Carolina State Bureau of Investigation.

“When this occurs, it is important that the SBI exercise due diligence in determining whether there has in fact been misappropriation of state resources,” Freeman added in a statement. “As is customary upon receipt of this information from an agency, the State Bureau of Investigation is conducting at my request an investigation into the use of state vehicles by the State Treasurer. As with all cases involving public officials, it is important that the public be able to trust that these sorts of matters are appropriately scrutinized. We are at the beginning of what is a standard review.”

The investigation comes months after a similar probe led to the resignation of State Auditor Beth Wood. Wood pleaded guilty in December to misdemeanor charges of using a public vehicle for private purposes after investigators found indications that she used a state vehicle to travel to shopping centers, cosmetic dentistry appointments, a Fayetteville hair salon and a pair of spas.

The Wood investigation started after she crashed a state-owned car into a parked vehicle after a holiday party in December 2022. As investigators started to review her driving habits, the the Department of Administration began to take a closer look at the use of state vehicles by other agencies.

As part of its review, the Department of Administration requested logs associated with seven vehicles leased to the Treasurer’s Office. The Treasurer’s Office submitted logs for each vehicle — except the vehicles driven by Folwell, according to the warrant. So the state pulled data from vehicle tracking devices that indicated they were being used at times for trips that didn’t constitute state business, the documents said.

Folwell is a certified public accountant who has branded himself as a protector of taxpayer dollars and champion of open government. He has spent a significant portion of his tenure pushing for pricing transparency from health care providers who work with the State Health Plan. He recently began a public campaign against the makers of weight-loss drugs over prices charged to the state plan that serves about 750,000 state employees and their family members.