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Arkansas AG determines company near 188th Wing is not a 'foreign-party-controlled business'

Secretary of Agriculture Wesley Ward believed the property owners violated Act 636, which prohibits land ownership by a "foreign-party-controlled business."

FORT SMITH, Ark. — Arkansas Attorney General Tim Griffin confirmed a company near the Ebbing Air National Guard Base in Fort Smith did not violate state law as Secretary of Agriculture Wesley Ward suspected. 

At the end of July, Ward requested that Griffin launch an investigation into the ownership of 4811 S. Zero Street, LLC, due to suspected ties to China and the Chinese Communist Party. 

Ward believed the owners violated Act 636, which prohibits land ownership by a "foreign-party-controlled business." 

"We were alerted [of] a purchaser who was buying a building right next to the air base," Ward said in July. "Once we got some additional information on who the purchaser was ... we felt like we had enough reasonable suspicion to turn that over to the Attorney General's Office." 

Ward said his department worked very closely with Arkansas Gov. Sarah Huckabee Sanders in turning over the case to the Attorney General to see if additional legal action could be taken.

On Aug. 13, Griffin released the following statement on the outcome of the investigation: 

"In my investigation into the ownership of 4811 S. Zero Street in Fort Smith, I determined that there is no violation of Act 636 of 2023. 4811 S. Zero Street, LLC is not owned by, controlled by, or associated with any 'prohibited foreign-party-controlled-business.'

"I thank the Secretary of Agriculture for alerting me to this issue and to the owners of 4811 S. Zero Street, LLC for their cooperation in the investigation. I also praise the diligence of the attorneys and agents in my office who handled this case."

The property belongs to Olivet International, which calls itself "one of the world's leading suppliers and sourcing partners to major retailers." 

5NEWS reached out to CEO Terry Muldoon about the outcome of the investigation. "We are grateful for the Arkansas Attorney General's Office handling this issue so thoroughly and quickly," Muldoon said.

He added that the company looks forward to creating additional jobs in Fort Smith.  

Ward, who initially alerted Griffin about the company, provided the following statement to 5NEWS on Aug. 14:

"The Department takes its responsibilities under Act 636 very seriously and acted appropriately to ensure our national security and the safety of Arkansans. As stated in our letter to the Attorney General’s office in July, the matter was forwarded due to a reasonable suspicion of a violation and the national security concerns associated with the site’s proximity to Ebbing Air National Guard Base." 

The Governor's Office also said it's Sanders' priority to protect Arkansas against foreign adversaries. 

"It is the Governor’s priority to investigate any potential violations of Arkansas law and make sure our farmland, our military bases, and all Arkansans are protected against hostile foreign adversaries," Alexa Henning with the Governor's Office said. 

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