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Tuesday, September 20, 2011

Central States News: Moberly MO Becomes Poster Child for Downside of Government-Issued Corporate Welfare

Imagine putting your city and it's taxpayers on the hook for a $39-million debt incurred building a company a new plant when that company was already basically bankrupt.

 That's what has happened in Moberly MO- located about 40 miles north of Columbia.

Back in the Summer of 2010- international company Mamtek U.S. (their Web site no longer works)  made a deal with Moberly city leaders that if the city would back $39-million in bonds- Mamtek would build a plant in Moberly to manufacture an artificial chemical sweetener.

The State of Missouri- about to make ANOTHER deal for a Chinese cargo hub in St. Louis- also put $7-million of state taxpayer dollars in the pot.

Partners in the deal was an outfit called "The Midwest US China Association" and you can see and hear all the sugury-sweet kudos given to the company in this YouTube video: 

Fast-forward to September 2011: 

Mamtek U.S. defaults on their August bond payment- it's only later discovered that the company has "very little cash" anyway- and it's unlikely the company can make good on any of it's promises.

According to the MOBERLY MONITOR- city officials "don't think" the city is on the hook for the defaulted bond payments- but the MM story clearly shows that the same city officials don't really KNOW if Moberly is on the hook for the $39-mil.

Construction on the new Mamtek U.S. plant in Moberly has come to a standstill. 

People hired to run the new plant have been fired.

The appears the State of Missouri can also kiss it's $7-million goodbye too.

I wonder if Missouri's Republicrats are still gung-ho on cutting the benefits of the state's poor and disabled to help finance that Chinese cargo hub in St. Louis?

1 comment:

Anonymous said...

These elected people don't care how much of your tax dollars they waste. And the people themselves don't either notice anyone screaming for heads to roll yet?

Nope and you won't either. America home of the sheeple and the pussies.

By the way these idiots who do nothing are a part of the same idiots who go to Arrowhead and give good money to the Hunt family to live good on and in return get to watch a crappy no winning football team.

Yup the rich laughing all the way to the bank at us dumb ass taxpayers who keep them rich.