COMMENTARY | In the wake of the Obama administration's failed bet with solar company Solyndra, the Department of Energy (DOE) has approved funding for another troubled energy corporation. Alstom Grid has been chosen by the DOE to explore "the challenges of integrating large amounts of renewable energy such as wind power into electrical grids," according to their press release. But Alstom has skeletons in its closet. A quick trip back in time shows that Alstom was a failed company that required a large government bailout in order to keep it above water.
In 2004 Alstom was the recipient of a European Union bailout for 2.5 billion Euros, as reported by the BBC. The initial "rescue" package was put together by France and supported by President Nicolas Sarkozy. Earlier in 2003, business decisions by Alstom led to a 1.84 billion Euro loss and put the company in dire straits. The conditions of the bailout forced Alstom to "form partnerships across a number of its key businesses." Alstom's main business ventures involved trains, ships, and power equipment. The company followed the imposed rules imposed as a condition of the bailout and expanded into the "green" energy field.
In 2010 Alstom created "Alstom Grid" from its purchase of Avera's T&D transmission business, according to the company's press release. This made the company the third largest electrical service provider behind Siemens and ABB. Considering Alstom's past, one would question the DOE's decision to contract the company in further ventures with taxpayer money. Aside from the European Union bailout, Alstom has also been under investigation for bribery and corruption.
Just four years after the EU bailout, Alstom was being probed on corruption charges for bribing officials for contracts in Asia and South America. AFP reported in 2008 that KPMG, a small accounting firm, had uncovered more than 20 million Euros circulated by Alstom to "shell companies" in Switzerland and Liechtenstein. Further investigation showed that Alstom had also taken the liberty of setting up accounts in the United States, Singapore, Hong Kong, Thailand, and Bahrain. According to the AFP report, Alstom was transferring cash in "stacks of 100-dollar bills" to marketing employees to Alstom's offices in Singapore, Indonesia, Brazil, and Venezuela.
Another probe showed to include a $200 million contract that paid commissions for a Brazilian contract that was fulfilled in 2001. And while Alstom has risen in ranks, another probe revealed concerns from clients. Brokers from Credit Mutuel-CIC had made comments about the German investigation into Alstom which showed "suspicious payments by German engineering group Siemens," one of its top competitors.
Considering the recent revelations regarding the failed Solyndra project pushed by the White House, many would think the vetting process to improve our nation's infrastructure would be handled more carefully. Solyndra rose to power with no problems other than the doubts of the DOE and its ability to pay back taxpayer guaranteed loans. Alstom was selected after it had previously failed, required a bailout, and was being probed for scandals.
pineapple express martyn martyn ecri college board stacey dash deep impact
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.