American taxpayers could be responsible for $150 million because of a deal the Export-Import Bank financed with an Australian satellite company. In 2012, Ex-Im awarded the company, NewSat, $280 million in loans for the construction of a satellite built by Lockheed Martin. But, NewSat just filed for bankruptcy in April.
The bank disbursed approximately $139 million in financing to the company.
Mike McCarthy, Ex-Im Bank’s acting inspector general, said during a House hearing Thursday that the bank is conducting an internal investigation of the bank’s financing with NewSat.
Meanwhile, at a Senate hearing last week, Fred Hochberg, president of the Ex-Im Bank, expressed support for the bank’s actions to fund NewSat, saying the relationship supported 250 jobs at Lockheed Martin and indirectly supported 650.
“From time to time, a deal will experience difficulties. That’s what capitalism is about,” Hochberg said. “Everything doesn’t go perfectly according to plan, sometimes deals do better than expected, sometimes worse, sometimes exactly.”
The bank’s charter ends on June 30 and currently 65 senators support reauthorizing the charter.
>>> How a $200 Million Bet on Australian Satellite Company Went Wrong for Export-Import Bank
