Tuesday, September 27, 2011

Mamtek facing two investigations

JEFFERSON CITY, MO (MISSOURI DIGITAL NEWS) - A Moberly development deal with China-based Mamtek is facing not one, but two investigations.

The Senate's Appropriations Committee chair will join the committee that will investigate a Moberly deal with the artificial sweetener company.

Mamtek promised more than six hundred new jobs in Moberly.

But when Mamtek failed to make a payment on nearly $40 million in bonds, it forced the city to dip into its debt service reserve.

The attorney general and the local prosecuting attorney are also investigating the deal.

Moberly's prosecuting attorney is Mike Fusselman.

"You're looking at the types of representations that were made with people to convince them to part with the money to invest in the project and if the representations were accurately stated or if they were misleading," Fusselman said.

Meanwhile, state legislative leaders say this scandal has undermined Jay Nixon's proposal for a deal with another China company to create an airport cargo hub in St. Louis.

The Senate's top leader, Rob Mayer, announced the Government Accountability Committee's investigation of a deal between the city of Moberly and China-based Mamtek.

Committee chairman Jim Lembke says this shows the legislature it needs to establish more targeted tax credits to prevent this from happening again.

"The legislature has to take a close look at you know current tax credit programs and any new ones we would establish," Lembke said.

The development project was supposed to create more than six hundred new jobs.

Mariel Seidman-Gati, Missouri Digital News


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