By Matt Sepic, KWMU
St. Louis – Missouri State Auditor Claire McCaskill says more oversight of state-run tax credit programs is needed.
McCaskill says a dozen fraudulent businesses in St. Louis received $2 million in tax credits under a program called Rebuilding Communities -a fact that was revealed Sunday in a newspaper article.
"The director of economic development and the governor knew as long ago as February of 2001 that there was a $19 million discrepancy between the numbers the Department of Revenue and the Department of Economic Development had, in terms of what was being redeemed," McCaskill said.
Rebuilding Communities is meant to draw high-tech companies into low-income areas.
Missouri Attorney General Jay Nixon says an investigation into the program is underway, and Governor Bob Holden says he wants the legislature to repeal the credits.
McCaskill is challenging Holden for the Democratic nomination in the Missouri Governor's race.