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26 September 2011

Mayer and Schaefer: Committee on Governmental Accountability to Investigate State’s Role in Mamtek Deal

Sen. Kurt Schaefer Appointed to Panel to Delve into District Issue

JEFFERSON CITY – The state’s role, particularly that of the Department of Economic Development, in luring a failed economic development project leaving Moberly residents on the hook for $39 million in bond revenues will be examined by the Senate Committee on Governmental Accountability. Missouri Senate Leader Robert N. Mayer, R-Dexter, today named Sen. Kurt Schaefer, R-Columbia, to the panel and charged them with investigating the matter.

“We all want to see more jobs created in our state, but it must not be at the expense of taxpayer safeguards,” said Mayer. “That is why I have asked the Governmental Accountability Committee to examine the role the state played in moving forward on this deal gone bad.”

Recent press accounts report Mamtek received $37 million in bonds from the City of Moberly to build a new facility where the company would make artificial sugar. Reports indicate the company had also been promised more than $17.6 million in state tax incentives if they met certain requirements.

Chairman Sen. Jim Lembke, R-St. Louis, said the panel will hold an organizational meeting early next week.

“The committee will first meet to lay the roadmap for the actions we will examine and the questions we intend to ask,” Lembke said. “We want to be clear from the beginning on our goals, so those who may come before us as well as taxpayers will have a clear understanding of how we plan to find out how one of our state’s communities ended up in the middle of a failed economic development plan promoted by the governor and the Department of Economic Development.”

Sen. Schaefer represents Boone and Randolph counties and requested to be involved in finding whether or not there was any wrong doing or misguidance by state officials in the promotion of the deal to local leaders.

“Each day more and more information is unfolding when it comes to how this deal started and how it failed,” said Schaefer. “It is extremely important for everyone across our state to learn what happened here so we may prevent other communities from falling victim to similar scenarios.”

Other members serving on the committee include Vice-Chairman Sen. Brad Lager, R-Savannah; Sen. Will Kraus, R-Lee’s Summit; Sen. Chuck Purgason, R-Caulfield; and Sen. Maria Chappelle-Nadal, D-St. Louis. Committee hearing information will be posted on the Senate hearing schedule on the Missouri Senate website (

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