Fraud that occurred during the Walz era was front and center in the first debate between Dem. Sen. Amy Klobuchar and MN GOP House Speaker Lisa Demuth.

Minnesota’s gubernatorial candidates clashed over the state’s fraud scandals in their second debate of the week, with Republican House Speaker Lisa Demuth pledging to fire all state commissioners on her first day in office and Democratic Sen. Amy Klobuchar defending her response.

The scandals have rocked the North Star State, raising questions about how large-scale abuse of state programs went undetected and putting government oversight at the center of the governor’s race.

"Fraud unchecked here in the state of Minnesota has gone far too long, and it has finally come to the surface," Demuth said.

MINNESOTA’S ANTI-FRAUD SPENDING HAS QUIETLY BALLOONED, LEAVING TAXPAYERS TO PAY FOR FAILURE TWICE

Democratic Sen. Amy Klobuchar and Republican Minnesota House Speaker Lisa Demuth clashed over fraud and government oversight during their second gubernatorial debate of the week. (Tim Evans/Evans ; Daniel Heuer/Bloomberg/Getty Images)

"The thing that I will do on day one is I am going to be firing all commissioners, choosing new commissioners that are expert in their field, that will carry out the accountability and transparency that is needed in our state. We have to change the culture of fraud."

Klobuchar called Demuth’s remarks "absurd" and said she contacted U.S. Attorney Andy Luger after the fraud came to light to ask what prosecutors needed.

"He said, 'I need more prosecutors'," Klobuchar said. "I called the highest level of the Justice Department, and I got him those prosecutors."

TIM WALZ SAYS HE TAKES RESPONSIBILITY FOR MINNESOTA FRAUD BY NOT RUNNING FOR RE-ELECTION

The fraud scandals unfolded during Gov. Tim Walz’s administration, putting state oversight and accountability under scrutiny in the race to succeed him. (Getty Images)

Klobuchar also said she would have caught the fraud earlier, while criticizing Walz’s response. "Tim Walz should have caught the fraud earlier and he should have done more," she said.

She also sought to distinguish herself from the outgoing governor and criticized Demuth for not clearly separating herself from President Donald Trump. "We don’t need a rubber stamp of Donald Trump in the governor’s office," Klobuchar said.Demuth countered that Klobuchar had not identified specific policies on which she would break with Walz, whom Klobuchar has called an "incredible governor."

'WE HAVE NOT SLOWED DOWN': MINNESOTA NOT OUT OF THE WOODS ON MASSIVE FRAUD SCANDAL, EXPERT WARNS

Republican Minnesota House Speaker Lisa Demuth, the GOP nominee for governor, pledged to fire all state commissioners on her first day in office over fraud concerns. (Glen Stubbe/TNS/ABACA via Reuters Connect)

Beyond fraud, Klobuchar and Demuth used the debate to draw broader contrasts over the economy, taxes, public safety and the direction of the state. Both candidates have ruled out tax increases, but Demuth has argued Minnesota needs to rein in spending and regulations, while Klobuchar has emphasized lowering costs for health care, housing and child care.

CLICK HERE TO DOWNLOAD THE FOX NEWS APPWednesday’s debate in Rochester was the candidates’ second faceoff this week and likely their final debate before Election Day on Nov. 3. Republicans have not won a statewide race in Minnesota since 2006.

The race will also make history regardless of the outcome, producing Minnesota’s first female governor. A Demuth victory would additionally make her the state’s first Black governor.

Amanda Macias covers the intersection of business, economics and politics, with a focus on how policy decisions shape markets, businesses and American workers.

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