DOGE cuts raise conflict of interest questions
Mass layoffs affecting at least 20,000 federal employees and the resignation of the SEC lawyer handling a lawsuit against Elon Musk have raised widespread concern over potential conflicts of interest
MUSK COMPANY INTERESTS
Federal contracts: over last 10 years
NASA, DoD and other agencies to SpaceX, Starlink, Tesla
$15.4bn
Investigations/fines: 32 by 11 agencies
To six Musk companies
Job losses
National Highway Traffic Safety Administration
Eight active investigations into Tesla following 10,000 complaints, delayed rollout of driverless vehicles
30 fired, many in office of vehicle automation safety
National Labor Relations Board
Investigations into labour conditions at Musk companies including non-unionised Tesla
Board member fired, 30 staff laid off
Consumer Financial Protection Bureau
Investigated Tesla’s debt collection and loan policies, safety violations on Tesla cars
All 1,700 employees sent home
Federal Aviation Administration
SpaceX: Fined $0.6m for safety violations in Sep 2024
Starlink: FAA contracts with competitor Verizon at risk
400 employees fired, SpaceX team now “advising” FAA
Federal Communications Commission
Denied Starlink rural broadband subsidies in 2023 after failure to deliver high-speed internet to 642,000 homes as promised
New FCC chief Brendan Carr “sympathetic”
Securities and Exchange Commission
Fined Musk $20m in 2018, with $150m lawsuit over Twitter takeover still ongoing
SEC lawyer on case quits. Around 500 employees reportedly laid off
Office of Government EthicsFounded after Watergate scandal – responsibility for conflicts of interest.
Director fired by Trump
Sources: Financial Times, Campaign Legal Center
Picture: Getty Images
© GRAPHIC NEWS