There is a developing story in the Capital City.  Hundreds of thousands of dollars in federal funds are causing controversy, here in the Midlands.  One loan awarded to a Columbia Councilwoman's mother, is under review.  City officials are now stepping in to look at the findings.

In mid-April, Veronica Isaac, the mother of Columbia Councilwoman Tameika Isaac Devine received a $280,000 loan from the Sumter-Columbia Empowerment Zone Program for a commercial building on Richland Street.  The building now houses her daughter's law firm.

The firm moved there from another Columbia location, which according to the U.S. Department of Housing Development violates the spirit of the program intended for new businesses--and they want their money back. 

We contacted Tameika Isaac Devine, who tells us reviews like this are common.  In a statement she says: "I believe the findings question whether the loan meets certain requirements, which I believe would be up to the Empowerment Zone staff to determine."

Columbia City Councilman Daniel Rickenmann is also named in the report.  It addresses a January 2008 loan intended for the purchase of Rickenmann's former restaurant "Birds on a Wire."

In a letter obtained by WACH Fox News, Rickenmann takes issue with the report saying it is incorrect writing.  "As an owner of the selling companies, I was unwilling to continue with the transaction if funding was being secured through a city program."

Columbia's Community Development Director says the report is now under review.

We wanted to talk to Veronica Isaac regarding the review.  But she sent word through her daughter that she did not want to comment at this time.  We will continue to follow this story and bring you any updates as they become available.