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Mon April 30, 2012
State Senate considers bill requiring deeper business background checks
The State Senate is considering legislation aiming to prevent economic disasters like Mamtek’s failed factory project in Moberly.
The Missouri House passed a bill Thursday that would require the state to conduct financial background checks on companies and individuals wishing to break ground on development projects in Missouri.
No such check was performed on Mamtek, which presented false economic claims during its failed sucralose plant project in Moberly. The project also resulted in a downgraded credit score for the city after agreeing to provide $39 million in bond financing for the project.
Representative Rory Ellinger, of University City, says the bill will add a buffer of protection.
“ I mean, if the state is involved as it is in giving out tax breaks, then it has a role and therefore has a responsibility to make sure the information going out is correct and doesn’t relieve the local people from, you know, verifying everything as well,” Ellinger said.
The Moberly Area Economic Development Corporation declined comment when asked for their opinion on the impending bill.
The State Senate will give the legislation a second reading when it convenes Monday.