Contribute
CONNECT:

research

Hazardous Waste

- November 3, 2011

The Energy Department’s Inspector General Sheds Light On Waste And Fraud In Obama’s Stimulus, Resulting In Over 100 Criminal Investigations

“In Testimony Before A Panel Of The House Oversight And Government Reform Committee, DOE Inspector General Gregory Friedman Said The Department Faced A Series Of Logistical Hurdles As It Worked To Dole Out $35.2 Billion In Recovery Act Money...” (Andrew Restuccia, “Energy IG: Goal Of Stimulus Law Unrealistic,”The Hill, 11/2/11)

TESTIMONY BEFORE A HOUSE COMMITTEE REVEALS AN UNETHICAL STIMULUS PROGRAM FRAUGHT WITH CRIMINAL ACTIVITY, NOT EXACTLY WHAT OBAMA PROMISED

THEN: On February 24, 2009: Obama Pledged That Joe Biden Would Lead “Unprecedented Oversight Effort” For $814 Billion Stimulus, “Because Nobody Messes With Joe.” “Here in Washington, we’ve all seen how quickly good intentions can turn into broken promises and wasteful spending.  And with a plan of this scale comes enormous responsibility to get it right. That is why I have asked Vice President Biden to lead a tough, unprecedented oversight effort – because nobody messes with Joe.” (President Barack Obama, Address To Joint Session Of Congress, Washington, DC, 2/24/09)

  • Last Year, Biden Praised The Stimulus Program For Its Lack Of Fraud And Called Critics Wrong For Believing There Would Be“Biden told federal fraud investigators meeting here this week that they've built ‘an exceptionally well-lit house’ that burglars don't want to break in to. ‘Remember what critics were saying in the beginning? Go back and Google it. They said there's no way this can be done without massive fraud,’ Biden said. ‘I stand before you today to say firmly, our critics were wrong because of you.’” (Gregory Korte, “Biden Boasts About Curbs On Stimulus Fraud, Abuse,” USA Today, 11/17/10)

NOW: Over 100 Criminal Investigations Have Been Launched By The Energy Department’s Inspector General Into The Way Stimulus Money Was Spent. “The Energy Department's inspector general has launched more than 100 criminal investigations related to 2009 economic stimulus spending. In written testimony prepared for delivery to the House Oversight and Government Reform Committee today, Inspector General Gregory Friedman said the investigations have involved ‘various schemes, including the submission of false information, claims for unallowable or unauthorized expenses, and other improper uses of Recovery Act funds.’” (Darius Dixon, “DOE IG: 100+ Stimulus-Related Criminal Probes,” Politico, 11/2/11)

  • Including Five Criminal Prosecutions Which Have Recovered $2.3 Million. “So far, the investigations have led to five criminal prosecutions and brought in ‘over $2.3 million in monetary recoveries,’ Friedman said. ‘This includes a series of cases involving fictitious claims for travel per diem resulting in the recovery of $1 million alone in Recovery Act funds,’ he added.” (Darius Dixon, “DOE IG: 100+ Stimulus-Related Criminal Probes,” Politico, 11/2/11)

Energy Department Inspector General Gregory Friedman: The Energy Department’s Loan Program Was Not Monitored Well Enough To Mitigate Risky Investments. “‘The Loan Guarantee Program had not [been] properly documented and as such could not always readily demonstrate how it resolved or mitigated relevant risks prior to granting loan guarantees,’ Friedman said.” (Darius Dixon, “DOE IG: 100+ Stimulus-Related Criminal Probes,” Politico, 11/2/11)

  • More Effective Oversight Could Have Prevented Taxpayer Money Being Wasted On Solyndra. “In his testimony, Friedman notes that the department failed to properly document and couldn’t always demonstrate how it resolved or mitigated risks prior to granting loan guarantees. Critics have said that such steps might have prevented the Solyndra scandal.” (Ed O’Keefe, “Energy Department Couldn’t Manage Stimulus Money, Watchdog Says,” The Washington Post's "Federal Eye,", 11/2/11)

ENERGY’S INSPECTOR GENERAL REVEALS MORE BOONDOGGLES FROM THE OBAMA STIMULUS

The White House Promised Shovel-Ready Projects, But Now They Are Revealed To Be Just Another Gimmick

THEN: President-Elect Obama Was Confident That Shovel-Ready Infrastructure Projects Would Lead To Recovery And Create Jobs Immediately. OBAMA: "Now, here's what I'm confident about, that our economic recovery plan, our 21st-century investments will create jobs immediately that would not otherwise be created. We've got shovel-ready projects all across the country that governors and mayors are pleading to fund. And the minute we can get those investments to the state level, jobs are going to be created." (President-Elect Obama, "Remarks in Chicago Announcing Energy and Environment Team," 12/15/08)

  • President-Elect Obama Remarked That There Were Plenty Of Shovel-Ready Projects For His Stimulus Program. OBAMA: "When I met with the governors, all of them have projects that are shovel ready, that are going to require us to get the money out the door, but they've already lined up the projects and they can make them work. And now, we're going to have to prioritize it and do it not in the old traditional politics first wave." (NBC, "Meet The Press." 12/7/08)

NOW: Friedman Admits “Few Actual 'Shovel Ready' Projects Existed.”  “The activity is partially due to the fact that few ‘shovel ready’ projects existed in 2009, Friedman said. ‘The concept of 'shovel ready' projects became a Recovery Act symbol of expeditiously stimulating the economy and creating jobs. In reality, few actual 'shovel ready' projects existed,’ he said.” (Darius Dixon, “DOE IG: 100+ Stimulus-Related Criminal Probes,” Politico, 11/2/11)

Friedman Called Attempts To Distribute Energy Department Stimulus Money As “More Challenging Than Many Had Originally Envisioned.” “The federal watchdog who first raised concerns over the federal loan program used for the now-defunct solar company Solyndra is scheduled to testify on Capitol Hill Wednesday--his first appearance since the story broke. Gregory H. Friedman is slated to tell lawmakers that the Energy Department‘s efforts to quickly distribute $35.2 billion in economic stimulus funding ‘was more challenging than many had originally envisioned.’” (Ed O’Keefe, “Energy Department Couldn’t Manage Stimulus Money, Watchdog Says,” The Washington Post's "Federal Eye,", 11/2/11)

  • “‘Our Reviews Have Identified A Fairly Consistent Pattern Of Delays In The Pace At Which Recovery Act Funds Had Been Spent By Grant And Other Financial Assistance Recipients,’ Friedman Said.” (Darius Dixon, “DOE IG: 100+ Stimulus-Related Criminal Probes,” Politico, 11/2/11)

Obama Said Weatherization Would Create Jobs Immediately, But Now It’s Shown To Be A Failure

THEN: President Obama Said Weatherization Is “Exactly The Kind Of Program That We Should Be Funding.”  OBAMA: “We’re going to weatherize homes. That immediately puts people back to work. And we’re going to train people who are out of work, including young people, to do the weatherization. As a consequence of weatherization, their energy bills go down and we reduce our dependence on foreign oil. What would be a more effective stimulus package than that? You’re getting a three-fer. Not only are you immediately putting people back to work, but you’re also saving families on their energy bills, and we’re laying the groundwork for long term energy independence. That’s exactly the kind of program that we should be funding.” (President Barack Obama, CBS’ Evening News, 2/3/09)

  • Vice President Biden Called The Program A “Triple Win. …  Because It Creates Green Jobs, Jobs That Can’t Be Outsourced.” BIDEN: “Investing in retrofits is a triple win.  It’s a win for consumers who save money on their energy bill.  It’s a win for the environment because we’re using less energy, which cuts down on harmful emissions from greenhouse gases.  And, finally, it’s a win for the American economy, because it creates green jobs, jobs that can’t be outsourced. ” (Vice President Joe Biden, Remarks By The Vice President Announcing Recovery Act “Retrofit Ramp-Up” Awards On Eve Of Earth Day, Washington, DC, 4/21/10)

NOW: Friedman: “Weatherization Work Was Often Of Poor Quality.” “Even programs that appeared the most straightforward, such as home weatherization, were mired in challenges at the federal, state and local levels. ‘Weatherization work was often of poor quality.’” (Darius Dixon, “DOE IG: 100+ Stimulus-Related Criminal Probes,” Politico, 11/2/11)

  • “In A Recent Audit Performed At The State Level, Nine Of The 17 Weatherized Homes We Visited Failed Inspections Because Of Substandard Workmanship,’ Friedman Said.” (Darius Dixon, “DOE IG: 100+ Stimulus-Related Criminal Probes,” Politico, 11/2/11)
  •  And In One Case A Weatherization Subcontractor Gave Preferential Treatment To His Employees And Their Relatives.”  “Government-backed projects to weatherize homes was often of poor quality, Friedman notes, and in one case a weatherization subcontractor gave preferential treatment to his employees and their relatives — meaning eligible elderly and handicapped residents missed out or had to wait for the weatherization of their homes.” (Ed O’Keefe, “Energy Department Couldn’t Manage Stimulus Money, Watchdog Says,” The Washington Post's "Federal Eye,", 11/2/11)

EXPLAINING  WHY THE STIMULUS HAS “FAILED TO LIVE UP TO INITIAL EXPECTATIONS”

THEN: Obama’s Advisors Predicted That The $825 Stimulus Would Keep Unemployment Below Eight Percent, The Unemployment Rate Has Remained Above Eight Percent For A Record 32 Straight Months. (Christina Romer and Jared Bernstein, "The Job Impact Of The American Recovery And Reinvestment Plan," 1/9/09; Bureau Of Labor Statistics, BLS.gov, Accessed 11/1/11)

  • NOW: Since President Obama’s $825 Billion Stimulus Bill Passed, The Nation Has Lost 1.5 Million Jobs And The Unemployment Rate Has Increased From 8.2 Percent To 9.1 Percent. (Bureau Of Labor Statistics, BLS.gov, Accessed 11/1/11)
  • FactCheck.org: “It’s Accurate To Say The Stimulus Has Failed To Live Up To Initial Expectations.” “CBO's high estimate is still short of the 3.5 million jobs that Obama had said would be created by the end of 2010, so it's accurate to say the stimulus has failed to live up to initial expectations. White House advisers wrongly estimated that the stimulus would bring the unemployment rate down to 7 percent — though they also thought the rate without the stimulus would be lower than it actually is, and they made clear that ‘substantial uncertainty’ surrounded those estimates.” (Lori Robertson, “Dueling Economic Ads,” FactCheck.org, 6/30/11)

Unemployment Next Year Could Remain Higher Than 8 Percent Meaning No Job Growth After “The Biggest Stimulus Package In The History Of The World.” “The White House anticipates unemployment at 8.25 percent and Goldman Sachs and others warn the number could be higher — close to 9 percent, which would mean no net job growth after the biggest stimulus package in the history of the world.” (Jim VandeHei and Mike Allen, “Obama’s Big Drags,” Politico, 8/4/11)


Previous post

Jon Corzine: The Ex-Future Obama Treasury Secretary

Next post

ObamaCare Pulse Check
Republican National Committee

Connect With Us

Republican National Committee
Chairwoman Ronna McDaniel
News & Videos
  • 310 First Street SE, Washington, DC 20003
  • 202-863-8500

By providing your phone number, you are consenting to receive calls and SMS/MMS msgs, including autodialed and automated calls and texts, to that number from the Republican National Committee. Msg&data rates may apply. Terms & conditions/privacy policy apply 80810-info.com.

Paid for by the Republican National Committee. Not Authorized By Any Candidate Or Candidate's Committee. www.gop.com

By providing your phone number, you are consenting to receive calls and SMS/MMS msgs, including autodialed and automated calls and texts, to that number from the Republican National Committee. Msg&data rates may apply. Terms & conditions/privacy policy apply 80810-info.com.

Paid for by the Republican National Committee.
Not Authorized By Any Candidate Or Candidate's Committee. www.gop.com