MichiganRadio

RASCO Scandal - MEDC Official Admits Mistakes Made LANSING, MI (MPRN) -

The director of the state's economic development agency admits there were errors that led up to Michigan awarding a $9 million tax break to a convicted embezzler.

Greg Main of the Michigan Economic Development Corporation says the agency may have been "blinded" by the chance to boost a start-up business in Flint, one of the state's most troubled cities. The MEDC was embarrassed last week when it was revealed the state gave a start-up tax credit to RASCO and its C-E-O, Richard Short.

Main says the MEDC was also not prepared to look into the operations of start-up companies, which usually don't have the records and assets of established businesses. He says the state will hire a private contractor to do background checks on future applicants for business tax breaks. © Copyright 2012, MPRN