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Energy Department Ill-Prepared To Prevent Fraud As It Spends Billions On Infrastructure

The Energy Department faces major management challenges ranging from hacking vulnerabilities to foreign espionage and could create “massive new risks to the taxpayer” as it spends tens of billions of dollars in new spending from President Joe Biden’s signature infrastructure initiative, the agency’s internal watchdog warns.
The Office of Inspector General offered a stark assessment of the department under Secretary Jennifer Granholm, pointedly warning losses from fraud in the current infrastructure spending could mirror that seen during the COVID pandemic, where taxpayers now lost an estimated $200 billion government wide.
The department faces “unprecedented challenges raised by the passage of the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, the CHIPS and Science Act, and the Puerto Rico Energy Resilience Fund,” the watchdog reported this month. “Preventing fraud, waste, and abuse in connection with these funds will be extremely difficult.”

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