The Case of CH2M Hill: $2 Billion in Crony Stimulation

AIM ^ | 11-30-11 | Rusty Weiss

[Mikey_1962]

“Not very much.”

This was the answer that the Department of Energy Secretary, Steven Chu, recently provided when asked of the amount the federal government will be able to recover from the Solyndra bankruptcy.

“Not very much.”

The same could be said for the amount of research that the federal government has put into other companies involved in the Solyndra scandal. One such company, CH2M HILL, should be next on the House GOP radar, having used nearly $10 million in stimulus funding to design the elaborate Solyndra facility in Fremont, California. While CH2M HILL is in no danger of suffering the same bankruptcy plight, they also languish in a pool of mismanaged taxpayer funds. The firm has a history of fraud, kickbacks, violations, and cover-ups, not to mention one particular parallel with the Solyndra scandal—layoffs. This, despite receiving almost $2 billion in stimulus funding.

Why, having been awarded more than three times as much funding as Solyndra, has CH2M escaped serious scrutiny? Perhaps it is the significant donations and lobbying efforts they have doled out, targeting key Democrats in charge of the stimulus. Perhaps it is the no-bid contracts, the influence they had in shaping the stimulus, or the revolving door of employees and White House administrative positions that have allowed them to continue their dominance in procuring government funding.

Why Analyze Energy Department Favorites?

Even as the House Oversight and Government Reform Committee investigates the handling of over $35 billion in stimulus funding granted to the Department of Energy (DOE) in 2009[1]—a hearing prompted by the failed loan program that funded the now bankrupt solar panel manufacturing company, Solyndra—some fans of the administration are calling for the President to stay the ‘green jobs’ course, citing the potential to add three million more jobs through his latest bill.[2]

[Mikey_1962]

"An Associated Press investigative report highlighted several past violations committed by CH2M —violations that were committed prior to the stimulus reward, including: [12] •In 2004, the Energy Department withheld $300,000 from the firm for poor conduct. •Between 2005 and 2006, the company was fined nearly $400,000 total for the radiological contamination of workers. •A “major spill” occurred in 2007 that resulted in over $683,000 in both fines and settlements to local agencies."

Quite the record there!

[yldstrk]

Are you kidding me?

The government can track down every dollar and take it back. The government has almost unbridled authority and power to do same. Even down to taking somebody’s house(s), cars), retirement and puppy dogs. Government has done it in the past.

In the instant case, “government” has handed this money out to its friends and is taking a bye on getting it back.

[wolfman23601]

Amazing how they get away with it. CH2M HILL is a government contractor... I have worked with them before. What amazes me is every dollar our company is funded is scrutinized by the DCAA through intensive audits. Granted, we are to small to donate to political causes, but we couldn’t get away with ripping off the government a dime if we wanted to. I really don’t see how so many firms get away with it.