Two Democratic lawmakers have expressed concerns about the selection of personnel overseeing the Commerce Department’s distribution of $39 billion in grants to the semiconductor industry. Senator Elizabeth Warren and Representative Pramila Jayapal criticized the department’s decision to staff the new office with former employees of Wall Street firms, including Blackstone, Goldman Sachs, KKR, and McKinsey & Company. They raised questions about the potential for a revolving door between government and industry and the risk of favoritism towards past or future employers.
The Commerce Department defended its staffing decisions, stating that the team includes individuals with diverse backgrounds in investing, industry analysis, engineering, and project management. They emphasized their commitment to reviewing applications based on their potential to enhance American manufacturing capacity and national security.
As the Biden administration prepares to distribute billions of dollars to rebuild the country’s chip manufacturing capacity, attention is being focused on the individuals responsible for evaluating grant applications. The director of the chips office, Michael Schmidt, has a background in both the Treasury Department and the New York State government. Other key staff members also have extensive experience in the financial industry.
Supporters argue that the expertise brought by investment analysts will enable thorough evaluation of complex business proposals. However, critics, including Senator Warren, see the staffing choices as creating potential conflicts of interest and an opportunity for undue advantages for Wall Street firms.
Warren and Jayapal have requested further information about the ethics rules and restrictions placed on the chips office workers, including filing personal financial disclosure forms and post-employment restrictions. This latest concern adds to Warren’s previous worries about federal chips grants being used for stock buybacks and her proposed legislation to impose stricter limits on the employment of former officials after leaving public service.
The Commerce Department maintains its commitment to transparency and ethical practices, stating their priority to vet employees for potential conflicts of interest and provide mandatory ethics training.
The source of the article is from the blog shakirabrasil.info