GAO questions if Treasury can monitor GM, Chrysler

[rickaren]

GAO questions if Treasury can monitor GM, Chrysler

Posted Tuesday, Nov 3, 2009, 4:18 pm in Employee News

Last modified on Tuesday, Nov 3, 2009, 5:11 pm.

The Obama administration’s ability to decide when and how to sell its stakes in General Motors Co. and Chrysler Group is undercut by the rapidly declining staff of the auto task force and its accompanying loss of expertise, Congress’ watchdog says, the Automotive News reported.

The task force has lost eight of its 12 professional staff members since early this year, the Government Accountability Office reported today, the paper said. In addition, the head of the Treasury Department-run task force, Ron Bloom, also recently was appointed senior counselor for manufacturing policy, forcing him to split his auto industry time, said the report by the GAO, the investigative arm of Congress.

Finally, even more staff reductions are likely as the task force continues to wind down, the report said, citing Treasury officials. “We are concerned that Treasury may not have sufficient expertise to actively oversee and protect the government’s ownership interests, including determining when and how to divest these interests,” the 31-page report said.

Treasury responded to the GAO’s concerns by saying it has enough bailout staff who work on matters outside the auto industry to fill in gaps left on the task force, the paper said. The GAO noted that the administration has not set up a unit specifically to oversee federal investment in the auto companies, nor has it told Congress how it plans to use the automakers’ financial reports to monitor their performance, the story said. (Automotive News)