The Egyptian company that received the largest tax incentive package in Iowa history has a subsidiary accused of defrauding the federal government out of $332 million, Ryan Foley reported yesterday in a must-read story for the Associated Press. Excerpts from Foley’s article are after the jump, but I strongly recommend reading the whole piece.
Iowa Economic Development Authority Director Debi Durham admitted that the federal lawsuit over improper contracts “did not come up in our due diligence,” which is no surprise. Durham’s negotiating strategy seems to have been not to question anything Orascom executives told Iowa officials. Although Governor Terry Branstad has claimed Iowa landed the fertilizer plant deal “by the skin of our teeth,” evidence suggests Orascom would have invested in Iowa even without generous state and local tax incentives.
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