who is pocketing all this money?
Perhaps relatives, distant relatives, inlaws, friends, cronies, etc.
IMHO, that's one of the tragedies here. I doubt the companies are making huge margins, maybe 10 or 15 percent, and the people who I would suppose did the crony-priming can't capture more than a small fraction of that. So maybe the crony-connected people make a few million--they don't care, because it was no risk. The fact that nearly a billion was wasted doesn't matter to them.
A similar thing happened with Solyndra, but I believe the payoff was bigger. Solyndra blew all of the money it borrowed, but a key Obama supporter and investor was in for $70 million before the loan came in--and his loan was given priority over the government's loan.