Kenneth Fletcher
WC Monitor
4/3/2015
Questioning whether former Deputy Energy Secretary Dan Poneman complied with ethics guidelines and federal conflict-of-interest laws, lawmakers on the House Oversight and Government Reform Committee this week launched a probe into Poneman’s recent appointment to CEO of Centrus Energy Corp. Earlier this month, the uranium enrichment firm, which under its previous name USEC received substantial support from the Department of Energy, announced Poneman would serve as its new CEO and president. “Given Mr. Poneman’s involvement in the numerous dealings between DOE and USEC since 2009, we are concerned that he may have violated post-employment laws for federal personnel, including restrictions that require senior government officials to report when they are seeking private employment, and to recuse themselves from matters with a direct effect on the financial interests of that potential private employer,” states a March 30 letter to DOE and Centrus from Committee Chair Rep. Jason Chaffetz (R-Utah) and Subcommittee on the Interior Chair Rep. Cynthia Lummis (R-Wyo.).
Poneman stepped down from his DOE post last October, but during his tenure he “was substantially involved in business arrangements between DOE and Centrus Energy,” the letter states. “Mr. Poneman’s work relating to Centrus Energy and its predecessor in interest, the United States Enrichment Corporation, raises questions about whether he complied with ethics guidelines and federal conflict of interest laws that cover government employees who are seeking private employment.” The lawmakers have requested by April 10 all documents and correspondence between Poneman and Centrus during his five-year stint at DOE, as well as documents and communications from other DOE employees related to “employment opportunities for Daniel Poneman at USEC or Centrus Energy.”
Centrus: Poneman at DOE Had No Contact With Company About Employment
Centrus plans to respond to the request, company spokesman Jeremy Derryberry said in a written response this week. “At no time during his employment with the Department of Energy did anyone affiliated with Centrus contact Mr. Poneman to discuss future employment opportunities,” Derryberry said. “The first communications with Mr. Poneman about this opportunity occurred after he left the Department. At all times, Mr. Poneman and the company have fully complied with all applicable post-employment restrictions and government ethics requirements and will continue to do so in the future.” DOE did not respond to request for comment this week.
Poneman Restricted from DOE Actions for Two Years
As part of the restrictions holding over from his DOE post, Poneman will be barred for two years on interacting with DOE. Poneman’s five-year tenure at the Department came as DOE provided around $260 million in support of USEC’s American Centrifuge technology as part of a cost-share RD&D program, which in addition to Congressional appropriations was funded in part by a $44 million swap in which DOE took on USEC uranium tails liability. Additionally, DOE offered the company a lifeline in the form of the transfer of a large quantity of uranium tails, valued at hundreds of millions, to extend operations at USEC’s Paducah Gaseous Diffusion Plant. Poneman also advocated for a loan guarantee for American Centrifuge in 2011, the lawmakers state in their letter.
Sens. Feinstein, Barrasso, Also Raise Concern
Other lawmakers have also raised concern about the appointment, including Senate Energy and Water Appropriations Subcommittee Ranking Member Dianne Feinstein (D-Calif.), who at a hearing last week said: “Given Mr. Poneman’s direct role in advancing USEC, how can anyone fully trust a DOE or contractor decision that benefits Centrus?” Additionally, Sen. John Barrasso (R-Wyo.) last month also sent a sharply worded letter to DOE about Poneman’s new spot. “Centrus’ announcement epitomizes the inappropriate and legally questionable relationship that DOE has had with this private company,” Barrasso said in the March 12 letter.
