The Energy Department’s internal watchdog is calling on the Loan Programs Office to suspend issuing any loans or loan guarantees due to its concerns about potential conflicts of interest — the latest criticism of a program supercharged by President Joe Biden.
The Office of Inspector General said it has found as part of an “ongoing” audit that the loan office is “not managing organizational conflicts of interest in compliance with regulations” or ensuring its contractor and subcontractors are effectively implementing plans to manage conflicts of interest.
“Although the audit is not complete, we are issuing this memorandum now because of the risks associated with closing an additional $22 billion in loans and loan guarantees by January 20, 2025, without ensuring compliance with conflicts of interest regulations,” the watchdog said in the interim report. The figure is a reference to the estimated amount of loan and loan guarantee applications the office plans to close before the change in the presidential administration, the report said.
The Energy Department pushed back on the report Tuesday.
