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LG Chem Michigan Has Little to Show After Spending Most of $150M Federal Grant

Feb 15, 2013
Source: 
(Detroit Free Press)

LG Chem Michigan, which received a $150-million federal grant in 2009 and more than $175 million in state and local tax relief, has not sold any battery cells to automakers, but has paid more than $1.6 million to workers who volunteered for animal shelters and charitable groups and watched movies and played video games or cards, according to a report an inspector general for the U.S. Department of Energy released today.

“We found that work performed under the grant to LG Chem Michigan had not been managed effectively,” wrote Gregory Friedman, the DOE inspector general. “Our review revealed that LG Chem Michigan inappropriately claimed and was reimbursed for labor charges incurred by a variety of supervisory and staff employees for activities that did not benefit the project.”