Missouri Employers Mutual Insurance Company's audit triggers investigation from the FBI.
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Missouri Employers Mutual Insurance Company's audit triggers investigation from the FBI.

Date: February 27, 2012
By: Sarah Duffey
State Capitol Bureau

Intro: 
Missouri State Auditor says the FBI is investigating a state created insurance company for making political donations.
RunTime:  0:42
OutCue:  SOC

Wrap: Missouri State Auditor Tom Schweich audited the Missouri Employers Mutual Insurance Company which was created to provide small businesses Workers Compensation for a reasonable cost.

The audit found employee incentives that included golf trips were excessive and unreasonable.

Schweich says it's up to the legislature to decide what is next.

Actuality:  SCHWEICH.WAV
Run Time:  00:10
Description: "For public employees you can't get incentive payments so if this falls in the public realm then in the private realm any incentive payments would've been inappropriate and thats something we want the legislature to take a look at."

The audit also revealed eight-thousand dollars in political donations to the Missouri Democratic Party.

Schweich says the F-B-I is investigating these donations.  

Reporting from the state Capitol, I'm Sarah Duffey.

Intro: 
Missouri State Auditor Tom Schweich finds the main source of Workers Compensation is under FBI investigation.
RunTime:  0:40
OutCue:  SOC

Wrap: Missouri State Auditor Tom Schweich released the audit for the state created insurance company Missouri Employer Mutual. 

Schweich says the audit found the employee incentives including all-inclusive vacations, tickets to athletic events, and political donations to the Missouri Democratic Party were inappropriate, but he says the company disagrees.

Actuality:  MEM2.WAV
Run Time:  00:14
Description: "MEM says they are not a public governmental or quasi-government entity they believe they are entitled to spend the money how they want, and if they feel it is necessary to spend it on parties and suite tickets and those types of things then they are legally entitled to do that and should do that without any interference from the state."

Schweich says the FBI is now investigating the company.

Reporting from the state Capitol, I'm Sarah Duffey. 

   

Intro: 
Political donations from a government funded insurance company are coming under investigation by the FBI.
RunTime:  0:40
OutCue:  SOC

Wrap: The state created Missouri Employers Mutual Insurance company to provide small businesses, with affordable Workers Compensation.

Missouri Auditor Tom Schweich audited the company and revealed eight-thousand dollars in political donations to the Missouri Democratic Party.

Schweich says the F-B-I is investigating these donations.

Schweich audited the company to find if the company should still be recognized as a public corporation or lose it's federal tax-exemption.

Actuality:  MEM3.WAV
Run Time:  00:10
Description: "The status of MEM is that it enjoys a federal tax exempt status and has avoided paying approximately 50 million dollars federal tax that otherwise would have been due if that not enjoyed the special status created by the legislature."
 

Reporting from the state Capitol, I'm Sarah Duffey.


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