Lawmaker Says 'Willful Neglect' Is the Rule at Embattled State Agency

Michigan Capitol Confidential ^ | 4/28/2010 | Tom Gantert

[MichCapCon]

The state's "flagship" economic development program may have doled out an estimated $150 million in tax credits erroneously in the last five years to companies that didn't meet the criteria due to a lack of oversight, according to State Rep. Tom McMillin, R-Rochester Hills.

McMillin met with the state Auditor General's office Tuesday after it released a report this week that said the state didn't follow up on company job projections that often fell short of required triggers to receive tax credits but still received the money.

The report comes a little more than a month after it was learned that the Michigan Economic Growth Authority (MEGA) board approved a $9.1 million tax credit to Richard Short, a convicted embezzler who was CEO of a company named Renewable and Sustainable Companies LLC (RASCO). The Flint Journal reported that at the same time he was working on the MEGA deal, Short was scamming thousands of dollars from an 86-year-old neighbor with dementia.

The Auditor General report found several problems with the Michigan Strategic Fund's oversight of the MEGA tax credit program. The audit concluded that the MSF's procedures were "moderately effective."

[SunkenCiv]

...the Michigan Economic Growth Authority (MEGA) board approved a $9.1 million tax credit to Richard Short, a convicted embezzler who was CEO of a company named Renewable and Sustainable Companies LLC (RASCO). The Flint Journal reported that at the same time he was working on the MEGA deal, Short was scamming thousands of dollars from an 86-year-old neighbor with dementia.

MEGA has been working well in other ways though. [barf] Thanks MichCapCon.

[grellis]

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