Canadian taxpayers on the hook for $2.6 billion after government writes the money off.
This write-off is among the largest ever for a taxpayer-funded bailout
The monies were advanced to Chrysler in 2009.
It was then that the world was in an economic meltdown.
Companies were going bankrupt as the world-wide economy was tanking out.
It was the government of Stephen Harper and the Ontario government that bailed out the financially strapped Chrysler car maker.
But the Canadian government also bailed out other car makers.
It pumped in a total of $13.7 billion in taxpayers money into the auto sector.
But Chrysler has not paid any of the monies back.
So the Liberal government decided to write the loan plus interest off for a total of $2.6 billion.
It did so because it came to the realization that Chrysler had no intention of paying it back.
But the Trudeau government has been secretive about the writing off issue.
In a government document – the 2018 Public Accounts of Canada there is no explanation for the write-off other than a write-off had taken place.
Also the loan recipient – Chrysler is not mentioned.
Canadian Taxpayers On The Hook For $2.6 Billion
It was only after the CBC News made inquiries did the government confirm it was the Chrysler loan.
Prior to the latest CBC News revelation the CBC reported earlier this year that the government had forgiven a huge auto-sector loan.
It obtained that information through the Access to Information Act.
But even that information was heavily redacted.
At the time government officials refused to provide details such as the amount or the business that was involved.
Even Michael Ferguson, Canada’s auditor general, was frustrated with government secrecy.
“We found it impossible to gain a complete picture of the assistance provided, the difference the assistance made to the viability of the companies, and the amounts recovered and lost,” he said in a 2014 report.