Canada Bailed Out GM And Chrysler Without Really Knowing Where $13.7 Billion Went

The Auditor General of Canada recently issued a report that makes at least one thing clear: it doesn't know how effective Canadian government loans given to both General Motors and Chrysler in 2009 were in ensuring the viability of both companies. That year, our Canadian government (and the province of Ontario) dished out $10.8 billion to GM and $2.9 billion to Chrysler, but hadn't yet sorted out precisely how the funds were to be used before disbursing them.

This happened in spite of the fact that, according to a piece in Bloomberg, the loans weren't meant to be handed out until authorities were clear on the manufacturers' plans for reorganization. In fact, federal officials hadn't finished establishing the concessions made by all the involved parties, the pension liabilities, nor the long-term soundness of the automakers' financial positions. On top of that, apparently it didn't keep close tabs on the money after loaning it: the report says that $1B should have been applied to GM Canada pension plans but was instead given to GM to use.