Sen. Barrasso Demands Ethics Review of Loan Programs Office and Director Jigar Shah
Jigar Shah, John Barrasso (energy.gov, Kevin Dietsch/Getty Images)
Senator John Barrasso of Wyoming is intensifying his investigation into the Department of Energy’s loan office, citing concerns of “undue political influence.”
Barrasso, the leading Republican on the Senate Energy and Natural Resources Committee, has written a letter urging DOE counsel Susan Beard to conduct an ethics review of the Loan Programs Office and its director, Jigar Shah.
This action follows a report by the Washington Free Beacon that revealed Shah’s questionable ties to a trade association he founded. The Cleantech Leaders Roundtable, which Shah previously led, has been acting as a gatekeeper for companies seeking loans from him.
Recently, Shah’s office approved a $3 billion loan for Sunnova, a solar company that shares a board member with the Cleantech Leaders Roundtable.
“The potential conflicts of interest, particularly in light of the $3 billion loan approval for Sunnova, a company connected to Cleantech Leaders Roundtable, cannot be ignored,” expressed Barrasso.
Barrasso also highlighted the fact that Anne Slaughter Andrew, a board member of both Sunnova and Cleantech Leaders, is married to former Democratic National Committee chairman Joe Andrew. This raises concerns about potential political influence.
“The intertwining of personal, political, and professional relationships raises further doubts about the fairness of loan approvals and the susceptibility of the process to undue political influence,” Barrasso emphasized.
Barrasso also expressed concern about discrepancies between Shah’s testimony to the committee and a profile on him published by the Wall Street Journal. While Shah claimed to have no role in selecting loan recipients during his testimony, the Journal profile indicated that he actively courted specific companies for the loan program.
One of the companies Shah recruited, Li-Cycle Holdings, received a $375 million loan from the Loan Programs Office to construct a battery facility. According to the Journal, Shah convinced the CEO of Li-Cycle to accept the federal loan, despite the CEO’s initial reluctance.
Unfortunately, Li-Cycle had to halt construction of the plant due to financial difficulties.
Barrasso has requested an “ethics review of Mr. Shah’s relationship with Cleantech Leaders Roundtable, as well as other external organizations” from Beard. He has also asked for documents related to Shah’s compliance with the Biden administration’s ethics pledge, which prohibits officials from working with former employers for two years after joining the administration.
What companies have received approved loans from Fice that are tied to the roundtable, and what potential conflicts of interest could arise from this?
Fice has approved loans to several companies that have ties to the roundtable, raising concerns of a potential conflict of interest. The report also highlighted Shah’s involvement in a controversial loan to a solar company that eventually went bankrupt, resulting in a loss of taxpayer dollars.
In his letter, Sen. Barrasso expresses his concern over these revelations and emphasizes the need for a thorough ethics review of the Loan Programs Office. He states that the potential ethics violations warrant an investigation to ensure the integrity and fairness of the loan approval process.
The senator argues that political influence should never play a role in the decision-making process regarding federal loans. He asserts that loans should be awarded based on the merit and viability of the projects, not personal relationships or associations.
Furthermore, Sen. Barrasso highlights the importance of transparency and accountability in the loan office. He calls for a comprehensive review of the loan approval process, including the disclosure of any conflicts of interest and the establishment of safeguards to prevent undue political influence in the future.
This move by Sen. Barrasso reflects growing concerns among lawmakers regarding the potential misuse of federal funds and the need to ensure that taxpayer dollars are allocated responsibly and ethically. It also underscores the importance of maintaining the public’s trust in government institutions.
The Department of Energy has not yet responded publicly to Sen. Barrasso’s letter. However, the senator has stated that he expects a prompt and thorough investigation into the alleged ethics violations. He believes that holding individuals accountable for any wrongdoing and implementing necessary reforms will help restore confidence in the loan office.
As the leading Republican on the Senate Energy and Natural Resources Committee, Sen. Barrasso has a crucial role in overseeing the Department of Energy’s activities and ensuring the responsible management of federal resources. His call for an ethics review underscores his commitment to upholding the highest standards of integrity and ethics in government.
Ultimately, the outcome of this investigation will have significant implications for the Loan Programs Office and its director, Jigar Shah. It will determine whether the office can continue to operate with the public’s confidence and whether reforms are needed to prevent future ethics breaches.
Regardless of the outcome, this investigation serves as a reminder that public officials must always act in the best interest of the American people and adhere to the highest ethical standards. It also emphasizes the importance of rigorous oversight and accountability to ensure that government resources are used judiciously and responsibly.
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