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Fri September 30, 2011
Moberly Requests Economic Development Project Funds
Lt. Governor Peter Kinder wants the Missouri Development Finance Board to review the way it approves financing for economic development projects. The request comes in the wake of the Mamtek fiasco in Moberly.
By Marshall Griffin (Jefferson City, Mo.)
The town of Moberly agreed to issue 39 million dollars in bonds to Los Angeles-based Mamtek, which was to build an artificial sweetener plant. The project fell through, and when the company missed its bond payment, Moberly was stuck with a 39 million dollar tab and its bond rating was downgraded.
Kinder said he wants to know what role Governor Jay Nixon’s Economic Development department played in luring Mamtek to the state.
“It appears that proper due diligence would have been 6 to 8 months or longer, and it has been reported and not disputed that this deal was rushed through in 73 days,” said Kinder.
The State Development Finance Board is expected to discuss the matter at its board meeting next week in St. Louis.
The Securities and Exchange Commission is also investigating the matter.