Federal Government Asking State to Return $1.2 Million Given to Nestle for Jonesboro Plant - KAIT Jonesboro, AR - Region 8 News, weather, sports

Jonesboro, AR

Federal Government Asking State to Return $1.2 Million Given to Nestle for Jonesboro Plant

APRIL 2, 2005 - Posted at 11:07 a.m. CST

 

JONESBORO, AR - The U.S. Department of Labor is asking the state of Arkansas to return more than $1.2 million that was given to the Nestle company when it decided to build a plant in Jonesboro.

The federal agency's inspector general received a state audit, and in response is questioning the money paid to Nestle for workers and office space violated federal rules.

In response, the state told the federal inspector general that the intent was for Nestle to be an extension of the state's worker program and that the state did not mean to avoid federal law.

State Senator Steve Faris (D) of Malvern said the federal report indicates there was some serious abuse of authority under former state Employment Security Department director Ed Rolle.

Faris said he plans to ask Attorney General Mike Beebe what remedies Rolle could face.

Rolle declined comment, saying he hasn't seen the inspector general's report.

(The Associated Press contributed to this report.)

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