WASHINGTON – U.S. Senator John Barrasso (R-WY), ranking member of the Senate Committee on Energy and Natural Resources (ENR), released the following statement on the Inspector General’s interim findings on conflicts of interest in the Department of Energy’s Loan Programs Office (LPO). Barrasso called on the Inspector General to investigate favoritism in the LPO grant process last year.

“In its final days, the Biden Administration has been shoveling taxpayer money out the door with insufficient safeguards against fraud, waste, and abuse,” Barrasso said. “Secretary of Energy Granholm should immediately stop the entire loan process until the Department puts strict safeguards in place to protect American taxpayers.”

Background Information:

This report focuses on contractors, subcontractors, and third party experts. According to the IG, LPO does not track contractors who may be serving both the LPO and prospective borrowers. Nor does the LPO track conflict of interest disclosures or waiver requests. The report also indicates that an ongoing IG audit has found that the LPO “is not managing organizational conflicts of interest in compliance with regulations.” The IG makes four recommendations, including that all loan and loan guarantee packages be put into abeyance “until the LPO can ensure that contracting officers and [their representatives] are complying with conflicts of interest regulations.”