Posted: Sep 25, 2012 11:09 AM by Associated Press
JEFFERSON CITY (AP) - A new audit says Missouri's economic development agency could have done a better job of screening applicants for business incentives.
The report released Tuesday by Auditor Tom Schweich says the state, Moberly and private entities were not diligent enough in screening Mamtek U.S. before the city's development agency issued $39 million of bonds for the company to build an artificial sweetener facility. Construction halted last year after Mamtek missed a payment for the bonds.
Since then, the attorney general has filed fraud charges against the company's CEO, the city's credit rating has been downgraded and bankruptcy proceedings have been initiated against Mamtek.
The state Department of Economic Development said in a written response included in the audit that it performed substantial due diligence on the Mamtek project.