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Energy Department audit reveals problems at L.G. Chem in Holland


HOLLAND (WKZO) -- Both the U.S. Energy Department and L.G. Chem of Holland are admitting mistakes in the expenditure of federal grant dollars on employees at their new facility, who haven’t turned out a single battery, and yet remained on the payroll, watching movies, reading books, working at local non-profits and generally just killing time and wasting taxpayer’s dollars.

It is all revealed in a new federal audit.

The difference is that the Korean company is coughing up $842-thousand in reimbursement to the Energy Department, their half of the money spent.The Department of Energy says it was poor oversight on their part that allowed it to happen. Both sides say slow sales of the Chevy Volt are to blame.

L.G. Chem has issued a statement saying it was their intent to keep trained staff on the payroll until demand picked up. They say they are still committed to production at the Holland facility.