LANSING, Mich. — Sen. Mark Huizenga on Monday sent a letter to Michigan Economic Development Corp. CEO Quentin Messer urging him to provide answers about $666.1 million in incentives previously awarded to General Motors now that the company has announced its plan to sell its investment stake in the Ultium Cells Battery Plant.
“GM lobbied both the MEDC and the Legislature to receive Strategic Outreach and Reserve Fund incentives under the premise that it was committed to creating jobs and investment in Michigan, but GM’s recent announcement contradicts that premise,” said Huizenga, R-Walker. “Hardworking Michigan taxpayers deserve answers and expect proper oversight to ensure taxpayer dollars are being used responsibly to improve our state and grow our economy. We’re talking about hundreds and hundreds of millions of dollars, and the people have a right to full transparency in how their tax dollars are being spent.”
Huizenga’s letter to Messer asks seven questions, including:
- Did a contract exist between the MEDC and GM or its involved entities? If so, did it include any clawback provisions?
- Was the MEDC made aware of GM’s intentions to sell off its majority stake prior to its public announcement? And if yes, were any disbursements made to the company after learning of this sale?
- Does the MEDC intend to change its vetting process when working with corporations going forward to ensure commitments to Michigan taxpayers are upheld?
“When my colleagues and I voted to create SOAR and its respective funds, a central priority of ours was creating accountability mechanisms for recipients of these grants. Clawback provisions, requisite benchmarks for job creation and return on investment, and legislative oversight were all bedrock elements of the program’s creation,” Huizenga wrote in the letter.
###