Missouri senators plan to investigate Mamtek project

Tuesday, September 27, 2011

JEFFERSON CITY, Mo. (AP) — State senators said Monday they planned to investigate a so-far unfulfilled central Missouri project that was to use public incentives and employ several hundred people to manufacture artificial sweetener.

The project by Mamtek U.S. Inc. was backed by $39 million in industrial development bonds issued by Moberly to finance the construction of a factory. The state offered more than $17 million worth of incentives and the company was to get $8 million in private investment. But the plant remains under construction, Mamtek has laid off its employees and the company missed its first bond payment.

State officials have said Mamtek did not receive any state funds.

Missouri senators said that the planned to examine state government’s role in the project, particularly how it was handled by the Department of Economic Development. The Senate Committee on Government Accountability was to conduct the probe.

Republican Sen. Kurt Schaefer, whose district includes Moberly, said it was important to learn what happened to protect other communities in the future.

Missouri Attorney General Chris Koster said last that week that he was investigating to determine whether any civil or criminal laws were violated. Koster said he would assist the Randolph County prosecutor and that the review had started immediately.

Meanwhile, the Columbia Daily Tribune reported Monday (http://bit.ly/rhmGys) that principal investors in Mamtek have formed a new company and told local officials that they plan to complete the factory project.

The Moberly Area Economic Development Corp. said the city received a written commitment from American Sucralose Manufacturing Inc. to make up the missed bond payment and “cure deficiencies and undertake completion of the project under city supervision.”

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wow 1 year, 7 months ago

There is no need for a state inquiry cause it's really simple...even though the folks at the state Eco-Devo offered to help get the company to stay in Missouri. They placed stipulations on what had to occur before the company could get Tax Payer money...however Mamtek continued shopping for a specific spot and several Missouri cities were jostling for this company. Everyone liked the idea of having a business like Mamtek in the state, but unlike the state Eco-Devo and the other Missouri Cities,the folks in Moberly were the only ones who paid up front money...which had to make Mamtek smile. That upfront money is what Kurt Schaffer and his Investigators are POed about. Well Mr. Schaffer no one at the state level had anything to do with that. Regretfully the Moberly leadership blundered this deal, because nobody there should have given a dime, certainly not 39 million dollars to a company that had not hired one worker and was clearly not in operation. The state government had nothing to do with this debacle, it all happened at the the city level. You got what you've been screaming for.. "less government interference". State level officials simply agreed to assist and never over stepped it's position of authority/responsibility. Eco-Devo checked the company out and let the city officials operate on their own...and even though Mamtek seemed ok....NOBODY AT THE STATE LEVEL EVER SAID THEY WERE OK ENOUGH TO GET $39 MILLION OF TAX PAYER MONEY UP FRONT!

So Mr. Schaffer, stop the witch hunt, get back to doing some real work and place the blame where it so squarely belongs. The leadership in the city of Moberly, they are the ones who blew this one!

Gabrielle 1 year, 7 months ago

I've learned a little bit more about this company. As I understand it - they are China connected. Apparently there are some laws that say that if a certain amount of money is being invested in the U.S., visas will be provided. Its a way for people to immigrate to this country. It happens often enough that some people won't call it a scam - but close to it.

Apparently, this company had ' a new and improved' way to manufacture sucrolose. Given the above information, it makes me wonder if there really is a 'new and improved' way to manufacture sucrolose....

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