President Trump has a short list of government agencies that need to be axed in order to reduce government spending and save the American people some important tax dollars.
Along with cutting funding to the Corporation for Public Broadcasting and the National Endowment for the Arts, he’s got his eye on another government agency that needs to go.
The Overseas Private Investment Corporation (OPIC) is the next useless and wasteful government program to be whacked for loaning out $890 million dollars worth of loans to several Chilean solar companies on the verge of bankruptcy.
From The Daily Caller:
A federal aid program President Donald Trump proposed cutting is under investigation for giving out nearly $1 billion in loans to several nearly bankrupt solar companies, according to a Reuters report published Tuesday.
The Office of Inspector General for the U.S. Agency for International Development (USAID OIG) is auditing $890 million of loans approved by the Overseas Private Investment Corporation (OPIC), a program used to advance loans to overseas business ventures.
Critics say such business ventures should receive funding from private banks, not from federal agencies.
USAID OIG initially began its audit in 2016 but kept it under wraps. The probe is centered on OPIC’s decision to fund five Chilean solar farms and a hydroelectric project in 2013 and 2014 – many of the loans are unlikely to be repaid, according to the report.
Trump proposed cutting funding for new OPIC projects in his 2018 budget outline released on May 23. Congress will not take up the president’s budget proposal until later this year.
The White House’s budget calls for a 31 percent cut to the Environmental Protection Agency’s 2018 budget, and slashes funding to the Department of State by 29 percent, while the Department of Agriculture would see a 20 percent cut. In total, Trump’s budget proposes cutting federal spending by $3.6 trillion over the next decade, including $1.7 trillion in cuts to entitlement programs.
Although several commercial banks determined the venture to be too risky, OPIC approved the loans anyway calling it a “manageable risk”:
Several commercial banks examined financing the beleaguered projects, sources told reporters, but they ultimately determined the unusual schemes too risky. OPIC considered the market scheme a manageable risk, according to three internal reports from 2013 and 2014.
It’s easy for a government agency to spread cash around when it’s someone else’s money. The American people took the risk and came up empty-handed, but I’m sure some crooked Chilean businessman profited handsomely!
Maybe Trump will cut if off quickly before it gives away a few more hundred million of our tax dollars!
Source: The Daily Caller