Kinder Calls for Business Financing Reform
JEFFERSON CITY - Lt. Governor Peter Kinder released a statement Friday asking the Missouri Development Finance Board (MDFB) to review the ways it approves finances for economic development. The statement comes in wake of an official investigation of Mamtek U.S. Mamtek was backed by $39 million in bonds by Moberly, but has yet to be completely built, has laid off its four employees, and missed its most recent bond payment.
Kinder said he wants the topic to be brought up Tuesday at the next MDFB meeting. The MDFB approved $4.6 million in financing for the Mamtek project.
"Taxpayers in Moberly are out as much as $39 million - an amount that threatens to bankrupt the city," said Kinder in the news release. "Missourians want to know what their state government is doing to ensure similar scenarios aren't played out elsewhere."
Kinder criticized Governor Jay Nixon's backing of the project in the statement.
He said a similiar development situation is occuring in Kirksville with Wi-Fi Sensors after it defaulted on its $1 million loan.