The senator has reportedly asked Department of Transportation chief Ray LaHood to look for evidence of fraud in the C4C program's $110 million administrative costs only. Grassley noted the exceptionally quick turnaround time of the program in his letter to LaHood and added "the DOT had only 30 days after the date the legislation was enacted into law to engage contractors and stand up the Program before the first rebates were issued." Grassley added that the original clunkers program accounted for $50 million in administrative costs but no additional money was allocated when the government approved an additional $2 billion for the program. It's clear Grassley wants answers, and he may have a point.
The U.S. government contracted several agencies to handle C4C administrative duties including Citibank, Vangent and the IRS. The program reportedly accounted for a total of 690,000 transactions at an administrative cost of about $144 per vehicle."To date the Administration has not provided an accurate accounting of the administrative costs related to the Cash for Clunkers program and I believe that the American taxpayer deserves more information, not less, and that information needs to come sooner rather than later."
[Source: The Washington Independent | Image: Justin Sullivan/Getty]