State Rep. Greg Markkanen is calling attention to the Michigan Liquor Control Commission (MLCC) after the Office of the Auditor General (OAG) uncovered widespread mismanagement within the commission. The MLCC is made up of five unelected governor appointees.
The OAG investigation revealed that more than 62,000 state-owned bottles of liquor were missing and uncovered extensive accounting failures. The value of the missing bottles totaled nearly $1 million, over 20 percent of its total inventory. The MLCC could not provide any information about the missing supply and was forced to process a refund to all vendors for the missing bottles.
“Prohibition ended almost 100 years ago, but alcohol in Michigan is still turning up missing,” said Markkanen, R-Hancock. “We all know Al Capone spent a lot of time in the Upper Peninsula, but some folks at the MLCC may be embracing that history a bit too much. Auditors uncovered widespread failures that cannot continue. There must be consequences when state departments lose taxpayer dollars and fail to report those loses to the public.”
The MLCC manages spirit products by facilitating sales through authorized distribution agents (ADAs) using 11 state-owned warehouses. The OAG revealed that the MLCC failed to keep adequate sale and purchase records. From February 2021 to August 2022, $1.1 billion in spirit orders were not filed in the state’s online ordering system.
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