Auditor sics AG on GreenTech for $6.4M loan repayment failure

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The state could be heading to court with a Tunica County electric car company for a failure to pay back taxpayers to the tune of $6.4 million in loans.

In 2011, GreenTech Automotive Inc., located in Robinsonville, entered into an agreement with the Mississippi Development Authority, which granted a $3 million “Industry Incentive” loan to the company and a $2 million loan to Tunica County to secure land for GreenTech’s production facility.

In return, the company promised to invest at least $60 million in the project, create 350 full-time jobs — each paying at least $35,000 — and maintain those jobs for at least 10 years.

When the company failed to deliver as promised by the end of 2014, State Auditor Stacey Pickering demanded the company return the money with interest.

Pickering on Monday announced that GreenTech had not yet responded to his office’s July 5 order for repayment from Charles Wang, president and CEO of GreenTech. Wang was given 30 days starting July 5 to pay back the state.

Now, Pickering is referring the case to the Mississippi Attorney General’s Office.

The auditor contends GreenTech Automotive did not comply with its loan payment agreement with the Mississippi Development Authority, including meeting certain job creation and investment benchmarks by Dec. 31, 2014.

The repayment order includes the two loans and costs for issuance and interest incurred by the state.

The company has made one loan payment of $150,000 to the Mississippi Development Authority in November 2016, the auditor’s office said.

GreenTech did not immediately respond to a request for comment.