Mo. report suggests new mandates on business aid
Monday, February 13, 2012
JEFFERSON CITY, Mo. (AP) — Public officials and bond professionals could face new due diligence mandates under the recommendations of a Missouri House panel that has been investigating the financial collapse of an artificial sweetener factory.
A draft report obtained Monday by The Associated Press suggests legislation requiring state economic development officials to more thoroughly vet companies seeking financial incentives. That would include a requirement to share information with local governments trying to attract businesses.
The recommendations come after revelations that Moberly officials did not receive a state email raising questions about Mamtek U.S. Inc. before issuing $39 million in bonds for a project that ultimately failed.
The committee report also recommends that municipal bond professionals be required to investigate the viability of companies and that all bonds be subject to elections.