WHY IS THE RUM GONE? How Michigan Lost $1 Million of Liquor.

Michigan is writing the latest chapter in the government’s century-long saga of alcohol control embarrassments. According to a just-released audit of the Michigan Liquor Control Commission (MLCC), the state’s complete inability to properly track its spirits inventory resulted in nearly a million dollars of liquor disappearing without a trace.

Michigan is one of 17 states that still operates as a control state. MLCC is the sole wholesaler of distilled spirits, meaning all liquor sold and distributed in the state must be originally purchased by the agency. Michigan law requires MLCC to exercise “complete control over alcoholic beverage traffic,” but it turns out that the agency lacks control over pretty much everything.

Since the 1990s, MLCC has outsourced the actual storage and warehousing of liquor to three “authorized distribution agents” (ADAs), who in turn use 11 warehouses to house the booze. The ADAs, which essentially act as a government-sanctioned oligopoly, are supposed to be operating as agents of the state. But the state code is silent about what the actual responsibilities of the ADAs entail, which results in a situation where everyone and no one is in charge at the same time.

The booze wasn’t “lost.” It was merely redistributed for sale outside of official channels.