State officials seek return of govt. grants after call centers close

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The Associated Press
© May 26, 2011

RICHMOND — A Virginia official says the state is negotiating how much grant money call center operator StarTek Inc. must repay after missing job-creation goals.

StarTek has received more than $600,000 from the Governor's Opportunity Fund and the Tobacco Revitalization Commission for three call centers in Lynchburg, Petersburg and Collinsville, according to a Richmond Times-Dispatch report Thursday.

StarTek closed the Petersburg operation and laid off more than 450 people in 2008. It has laid off employees in Lynchburg and on Monday said it was closing the Collinsville operation and eliminating 631 jobs.

Deputy Secretary of Commerce and Trade Carrie Cantrell says companies must repay job-creation grants if they miss goals. The amount is negotiable.

StarTek repaid $18,450 for the Lynchburg operation and is in talks about the Petersburg jobs.

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Another self-serving company?

Submitted by davidh36291 on Fri, 05/27/2011 at 9:27 am.

They're probably one of hundreds of companies that came into existence for the sole purpose of applying for grants so that company management could pay themselves large salaries for a short time before closing one business to start another. Greed and easy money from our government...the American way. State and federal agencies need to do background checks on all the management and owners of these companies BEFORE they receive one dime of grant money.