House Committee Looks to Prevent Mamtek-Like Failures

4 years 8 months 3 weeks ago March 06, 2012 Mar 6, 2012 Tuesday, March 06 2012 Tuesday, March 06, 2012 10:38:00 AM CST in News
By: Associated Press

JEFFERSON CITY - A Missouri House committee has endorsed several new mandates for state and local government after the planned construction the Mamtek sweetener plant in Moberly failed last year.

The legislation would require local governments to hold public hearings before issuing bonds. State and local officials would also have to share information they have about companies seeking development incentives.

The state would also be allowed to conduct criminal and financial background checks on executives of start-up companies that ask for government aid.

The legislation now goes to the full House.

The new mandates come in response to the failed Mamtek U.S. Inc. project in Moberly. Factory construction stopped last fall after the company missed a payment on $39 million in city bonds.

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