The Energy Department can’t figure out how hundreds of thousands of dollars in “green energy” stimulus money earmarked for manufacturing equipment was spent, according to a new report from the agency’s Inspector General.
DOE’s IG stated in a July 2012 audit report that $500,000 of equipment bought with stimulus money to fund the Advanced Batteries and Hybrid Components Program cannot be located.
The authors of the report examined three recipients of stimulus money: A123 Systems, Inc., Delphi Automotive Systems and Johnson Controls, Inc. The report claims that “one of the three recipients” does not have information that provides the location of purchased equipment.
“Despite the assistance of recipient officials familiar with the premises and knowledgeable about the purchases made, we were unable to locate 20 of the 37 equipment items sampled,” the report states. “The missing items were valued at approximately $500,000.”
The authors of the report would not release the name of the recipient that lost the $500,000.
The stimulus allocated $2 billion “to support the construction of U.S. based battery and electric drive component manufacturing plants.” In all, it gave 30 grants worth $1.2 billion to for-profit manufactures.
Although the DoE requires that for-profit manufacturing grant recipients display “best commercial practices,” a set criterion to fit this standard does not exist.
“Regulations currently require for-profit recipients to follow best commercial practices, but do not define such practices,” the report states. “One recipient in our sample had purchased about $24 million in equipment and services without adequately documenting purchasing decisions.”
It also concluded that the Department “obtain and review required audit reports to ensure the sufficiency of internal controls and compliance with laws and regulations” in order to improve its administering of the Advanced Batteries and Hybrid Components Program. “Of 28 program recipients, 8 had not submitted required reports.”
Melanie Wilcox is currently a member of the Young Leaders Program at The Heritage Foundation.
Before Obama started bailing out his friends, the private sector doesn't lose anything without accountability or correcting the problem when it arises. The private sector is responsible with their finances and decisions that avoid problems but do suffer their own consequences without having to include the whole country. The government sector is careless and reckless in their work, decision making and with our money. Because there's no adequate supervision and cover ups go on for a length of expensive time, lost standard of work ethic becomes passive not corrective. I thought in time people become more self respecting and honorable. Adolescence remain in the past! Government obligates more from us to hide their cheats, derelictions, set-ups and their true worth. Government has no worth or purpose in areas they can cheat the people at liberty. hmm, that's in all areas.
The key information about the extent of the fraud is in the tidbit "20 0f 37 equipment items SAMPLED". What that means is that of the small sample over half of the items supposedly purchased can not be found. Extrapolate that to the size of program and we have equipment valued over $600 million that can't be found!!! That's not carelessness that pure robbery and fraud!!!
I ask you how soon will it be before the MSM discovers this and presses for a grand jury investigation regardless of how the fall-out may effect Obama Sully
WELL, THAT'S ANOTHER FINE MESS YOU'VE GOTTEN US INTO NOW, BARRY!
Hello from Oz.
For some reason my first comment wasn't allowed, so I'll try again.
Americans read the book "Animal Farm"
It is about animals taking over the farm, they make a constitution, but the Pigs change it, sleep in the farmers house, rest of the animals outside, the pigs even kill other animals.
Is there not a similarity to your present government?
Americans stand tall, take your country back, we need you to be strong economically and military.
i know where it is. in some union guys garage i'm sure.
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