The Daily Caller, a Washington D.C. based news site, recently reported allegations of bribery and corruption within the United States Department of Justice. This arises from a situation involving previous allegations of “financial irregularities” within the National Rural Utilities Cooperative Finance Corporation (CFC), dating back to the early 2000s.
CFC was formed in 1969 to help rural electricity cooperatives get access to private funding. In 1987, the Rural Telephone Finance Cooperative (RTFC) was created as an affiliate of CFC to help rural communities finance their telephone infrastructure. Much of the money loaned out comes from the federal government, with a reported $5.1 billion coming from the U.S. Department of Agriculture and the Federal Agricultural Mortgage Corporation between July 2005 and February 2010.
Allegations of Financial Improprieties
It is alleged that between 2000 and 2005, CFC
“…inflated its own balance sheet with millions of dollars in nonexistent operating income. At the same time, it deflated RTFC’s worth, essentially siphoning money away from a member co-op that it created.”