July 20 (Reuters) – The United States Congressional Oversight Commission questioned Monday the Treasury Department’s decision to designate trucking company YRC Worldwide Inc as critical to national security and lend it $ 700 million.
The company’s shares fell about 28% during regular trading after the committee also said the measure risked losing money to American taxpayers.
Earlier this month, YRC said it would give the US government a 29.6% stake in exchange for a $ 700 million loan, taking advantage of a $ 17 billion bailout fund originally intended for construction contractors. defense like Boeing Co.
The committee said in a report that https://bit.ly/32GQee7 YRC did not meet the Treasury’s eligibility criteria and apparently did not perform under a national high-priority defense contract or top-secret security clearance.
YRC did not immediately respond to a request for comment.
The report also said that YRC was rated under a general provision created by the Treasury based on a recommendation and certification from the Secretary of Defense or the director of National Intelligence. (Report from Praveen Paramasivam in Bangalore; Maju Samuel Edition)
