Corporate Integrity Project

Taxpayer Subsidies Keep Elon Musk's Companies Afloat

Well, somebody did it, and it was the mainstream media. Congratulations to the Los Angeles Times for taking the time to research and estimate the total amount of U.S. public (local, state, and federal) subsidies for companies owned or run by South African-born Canadian-American Elon Musk.

The total amount calculated by reporter Jerry Hirsch for taxpayer-backed incentives – of many different forms, including tax credits and rebates provided to customers – was $4.9 billion. The corporate beneficiaries have been Tesla Motors and SpaceX, where Musk is CEO, and SolarCity Corp., where he is chairman. The sum does not include SpaceX’s contracts with the government to carry out programs for NASA and the U.S. Air Force.

Will Criminal Charges Bring Justice for GM Victims?

The New York Times reports that the Justice Department has concluded that there was criminal wrongdoing by General Motors as the company covered-up a deadly ignition switch defect for years. That defect has now been blamed for causing the deaths of at least 107 motorists. While many observers may have been able to come to the conclusion that GM was guilty long before the Justice Department’s recent epiphany, the bigger question now is, what’s next?

'Green' Apple Installs Diesel Generators, Ballyhoos Phony Forest Offset Scheme

green Apple logoWhile Apple Inc. continues its laughable claim that its data centers are run “100-percent” on renewable energy – highlighted by a solar farm built adjacent to its server facility in Maiden, N.C. – public records show the company has received permits to install 44 pollutant-spewing diesel generators for back-up power.

Meanwhile two weeks ago the Cupertino, Calif.-based computing giant boasted far and wide that it was joining with the Conservation Fund to “protect” a “working forest” in Brunswick Co., N.C., which is on the state’s southeastern coast. So Apple asserts that it reduces pollution produced by fossil fuels, while conserving timber for future generations. Wouldn’t that be wonderful if it was true? Instead it’s more of what the environmental left likes to call “greenwashing.”

GM Misses Earnings - Burns over $3 Billion in First Quarter

It appears that General Motors is trying to remedy one of the latest criticisms against them. That criticism is that the company has way too large a “cash hoard” and most recently came from former Obama Auto Task Force member turned shareholder activist, Harry Wilson. Well Harry, be at ease; GM has managed to reduce that so-called hoard by over $3 billion in just three months as first quarter earnings flopped on Wall Street.

Congress Asked to Stop GM From Writing Off Ignition Switch Victim Compensation Costs

Today I sent this letter to Senators Charles Grassley (R-IA) and Richard Blumenthal (D-CT):

We strongly urge you to re-introduce legislation similar to the Government Settlement Transparency Reform Act (S.1654) in the 113th Congress.

As you know, the death toll from General Motors’ failure to act on an ignition switch defect continues to climb, now at 87. Although GM's decision to create a fund to compensate victims and their families is a step in the right direction, we are troubled by GM’s ability to write off the cost as an expense for federal tax purposes.

Regulatory Capture: NHTSA Toes GM Line on Brake Corrosion

The verdict is in from the National Highway Traffic Safety Administration (NHTSA) on General Motors’ corroding brake line problem. Despite having received thousands of complaints from motorists regarding brake failure due to brake line rust, the agency claims GM does not have higher failure rates than other manufacturers. The clear evidence to the contrary makes this a classic case of what economists call "regulatory capture." First identified by Nobel laureate George Stigler (in photo) in 1971, it's when a government agency tasked with protecting the public interest instead acts to the benefit of an industry or particular company.

Alcoa Gets First Loan From Energy Dept. Program— But Doesn't Need It

Ernest MonizA stimulus-backed Department of Energy loan program that has not been tapped for four years, and was deemed unwanted two years ago by the Government Accountability Office, is suddenly ready and willing to dole out more taxpayer millions again – to a corporation that doesn’t need it.

In fact, Alcoa’s expansion project for which the funding is targeted – to produce special aluminum for automotive companies in Tennessee – has already been underway for 19 months and was first revealed almost two years ago.

Jeb Bush Relationship With Fraudster Claudio Osorio Gets New Scrutiny

CNN reporter Chris Frates has identified “plenty of red flags” that former Florida Governor Jeb Bush should have seen before he joined in a business relationship with a company called InnoVida, headed by Claudio Osorio, who is now serving a 12 ½-year prison sentence for defrauding investors. Osorio's mug shot is at right.

While Osorio’s efforts to cozy up to politicians in both parties have been previously reported, the CNN report includes important new facts. From the report:

Intel Succumbs to Jesse Jackson 'Diversity' Campaign

For a first-hand lesson in the timidity of corporate America, look no further than Intel Corp.  This January, the Santa Clara, Calif.-based chip maker announced it would set aside $300 million by 2020 for hiring, training and promoting “underrepresented” racial minorities and women.  Intel CEO Brian Krzanich revealed the plan at the annual Consumer Electronics Show in Las Vegas only weeks after he and other top company officials had met privately with Jesse Jackson.  The announcement was a triumph for Jackson’s Silicon Valley shakedown campaign.  “It’s a huge first step,” he declared, urging other tech firms to follow suit.  Given the acquiescence of eBay, Google and Facebook to Jackson at shareholder meetings last May, it is no surprise those companies are doing just that.

Mary Barra's Veracity on Trial in GM Lawsuits

Depositions for General Motors’ executives, including CEO Mary Barra, will begin in May, according to the Detroit News. The testimonies will be at the center of class-action lawsuits (set for trial in January, 2016) against GM for its ignition switch defect cover-up and are slated to conclude in early October of this year. It will not be the first time Barra has testified under oath about the recall debacle which is now blamed for having caused 74 deaths.

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