Director of state department claims there can be too much due diligence
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Director of state department claims there can be too much due diligence

Date: November 30, 2011
By: Stephanie Ebbs
State Capitol Bureau

Intro: 
The head's of the state's economic development agency claims they did their part to check out the failed company Mamtek before Moberly invested in it. Stephanie Ebbs has more in Jefferson City.
RunTime:  0:50
OutCue:  SOC

Wrap: Mamtek is a Chinese company that promised to create 600 jobs in Moberly, but never did. 

Lawmakers are investigating whether the failure of the company could have been prevented if the Department of Economic Development had investigated the company's background.

Economic Development Director David Kerr defended the department's process.

Actuality:  KERR3.WAV
Run Time:  00:09
Description: Where there is no risk to taxpayers, it is an ineffecient use of taxpayer dollars for DED to double check or second guess anything that a company says.

While Kerr says his department did its due diligence, it was never able to verify that Mamtek even had a facility in China.

The department told Moberly it had concerns, but they never shared the details.

Mamtek recently defaulted on a 39 dollar million payment to the city, which resulted in a downgrade of the city's credit rating.

From Jefferson City, I'm Stephanie Ebbs.

Intro: 
The head of the state's economic development agency claims they did their part to check out the failed company Mamtek before Moberly invested in it. Stephanie ebbs has more in Jefferson City.
RunTime:  0:49
OutCue:  SOC

Wrap: Lawmakers are investigating whether a failed investment could have been prevented by the Department of Economic Development.

Mamtek is a Chinese company that promised ro create 600 jobs in Moberly but backed out before any jobs were created.

Republican Kansas City House Budget Chair Ryan Silvey said they should have sought a second opinion.

Actuality:  SILVEY11.WAV
Run Time:  00:13
Description: I liken this to, on my resume, or anybody's resume, you never put down the guy that's gonna say don't hire him, he's a chump. Right? I mean, you put down the people that are gonna say the best things about you because you're the one providing the information

But Kerr said a background check would have been a waste of taxpayer dollars, despite the department's concerns.

Mamtek recently defaulted on a 39 dollar million payment to the city, which resulted in a downgrade of the city's credit rating.

From Jefferson City, I'm Stephanie Ebbs.