The Department of Energyâs rush to fund new green energy projects before the end of President Joe Bidenâs presidency has met renewed criticism from the Department of Energy inspector general.
In a Dec. 17 interim finding, Inspector General Teri Donaldson warned that $385 billion in new money made available by the Inflation Reduction Act and related bills is being administered without adequate safeguards against organizational conflicts of interest.
A Department of Energy spokesperson told The Epoch Times via email that the memorandum chastising the departmentâs Loan Programs Office (LPO) was riddled with errors.
âWe stand confident in knowing LPO is in full compliance with the Department of Energyâs conflicts of interest regulations and take conflicts of interest very seriously,â the spokesperson wrote.
Donaldsonâs memorandum notes that it was issued because the LPO stated it intends to issue $22 billion in loans and loan guarantees before leaving office, on top of the $15 billion since 2021.
November IG Report Voiced Similar Concerns
The latest memorandum follows a November report from the IG outlining similar concerns with the LPO.
It cited concerns with the rapid timeline for disbursing financing, the potential for funding foreign adversaries, and the number of applications being processed.
The November report warns of âtremendous risk to the taxpayerâ posed by the LPO.
In response to that report, Republicans on the House Committee on Science and Commerce wrote to Shah requesting that he pause any new loans or related moves in the waning days of the Biden administration.
The new memorandum delves into the IGâs concerns and applicable law, including the Federal Acquisitions Regulations.
âThe OIG [Office of Inspector General] audit team was surprised to learn that the LPO does not ensure that contracting officers and contracting officersâ representatives track third-party experts,â it states, noting that the Federal Acquisitions Regulation mandates scrutiny of possible conflicts of interest.
The memorandum states that the office âhad no records of disclosures made or waivers requested for the technical/engineering, financial, and other support contractors.â
It also states that the LPOâs prime contractor, Archetype, did not follow elements of a required organizational conflict of interest management plan.
âThe LPO was unaware that the contractor had not implemented key aspects of the plan, such as the training requirement, which is arguably the foundation of the contractorâs organizational conflict of interest strategy,â the memorandum states.
The memorandum calls for immediate action by the LPOâs director, including the temporary suspension of loan and loan guarantee packages ahead of any corrective steps by the LPO.
Original News Source Link – Epoch Times
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