They should be looking at seizing all assets and chattels to auction off and recoup what they can.
Except that will never happen, given how public this situation is. That would mean that local government made a mistake, gave money to someone that wasn't worthy (and the public found out about the whole thing or knew from the start) and now that it failed miserably (what the hell do they do with all this money?! $75 MILLION?! Think about that for a second. No way operating expenses went that high. Not a chance. It was wasted, plain and simple) they have to find a way to come out of it without having to resign. Auctioning the assets would be the smart thing, but it will be the last resort...
'Who am I?...I am the right hand of vengeance and the boot that is going to kick your sorry ass all the way back to Earth, sweetheart! I am death incarnate, and the last living thing that you are EVER going to see. GOD sent me.'