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by WILL FOLKS
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Three months ago, our media outlet exclusively reported on the latest taxpayer-funded bailout request tied to the crony capitalist Scout Motors project in Blythewood, South Carolina.
As we noted at the time, this subsidiary of über-woke Volkswagen – which received a staggering $1.3 billion in taxpayer-funded incentives just three years ago – sought an additional $200 million through the S.C. Department of Commerce (SCDOC).
The latest bailout request is intended to address “cost overruns” at Scout’s massive facility just north of the state capital – a sprawling, 1,600-acre industrial desert which has yet to produce a single vehicle. In fact, as we reported two months ago, Scout is facing additional production delays as the market for EVs continues to crater.
This week, SCDOC secretary Harry Lightsey testified before lawmakers that the actual cost overruns associated with the Blythewood boondoggle totaled $220 million – including $70 million in “contingency funding” that his agency had already blown through.
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That’s right… state economic developers have already spent a huge chunk of this money.
“Lightsey said he won’t let such a cost overrun happen again,” reporter Jessica Holdman of The Daily Gazette noted in her coverage of the debacle.
Wait… what?
It won’t happen again?
How is someone who makes a $70 million mistake allowed to remain at a job where they could potentially make it again?
Inexplicably, Lightsey still has his job… of course when you consider his boss, lame duck governor Henry McMaster, is this project’s biggest champion it gets a lot more “explicable.”
And a lot more expensive for taxpayers…
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RELATED | CORRUPTION ALLEGATIONS FLY
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McMaster is not only pushing for taxpayers to pick up the remaining $150 million in overrun subsidies – he wants an another $100 million in recurring annual funding for EV industry scholarships from the S.C. Education Lottery.
To recap: South Carolina made its massive investment in Scout at a time when the EV market was already showing signs of collapse – which is probably why no other state seriously entertained the project (save Mississippi, which offered a comparatively small $150 million in total incentives to the company).
Scout – which recently jilted South Carolina by putting its corporate headquarters in Charlotte, N.C. – has insisted it is not requesting the money.
“This is not our funding request,” company spokesman Jamie Lovegrove told us. “As (secretary) Lightsey testified in the hearings, this is a Commerce funding request for Commerce’s budget.”
Irrespective of the source of the request, one of the top candidates vying to succeed McMaster in office seized upon the Scout scandal as “crony capitalism and bad business.”
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“South Carolina families deserve transparency and results, not moving goalposts, cost overruns, or empty promises,” attorney general Alan Wilson said. “Today, we learned the true overrun on the Scout Motors project isn’t $150 million, it’s closer to $220 million after a $70 million contingency was already burned through. And now taxpayers are being asked for even more. All while Scout Motors put its headquarters in North Carolina, and our taxpayers are footing the bill here.”
“That’s not how this should work,” Wilson continued. “That’s crony capitalism and bad business. As governor, I’ll demand accountability. No blank checks. Taxpayer dollars should come with transparency, enforceable clawbacks, and real results. Period.”
Count on FITSNews to keep tabs on this boondoggle as it continues to impact the Palmetto State’s budget process. Also, keep it tuned to our outlet for updates in the event other candidates for governor decide to weigh in on the issue.
Scout has vowed to bring 4,600 new jobs and $3 billion in new capital investment to the Palmetto State, but these ongoing delays and inexcusable cost overruns continue to call those lofty projections into question.
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ABOUT THE AUTHOR…
Will Folks is the founding editor of the news outlet you are currently reading. Prior to founding FITSNews, he served as press secretary to the governor of South Carolina. He lives in the Midlands region of the state with his wife and eight children.
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9 comments
Scout representatives recently told a local Optimist Club group. That SC promised to clear the land and level it for the plant. That was part of the deal. Turns out that the elevations were much more than SC knew. Leveling has caused the over runs. Not costs created by Scout on its part. It was part of the deal that SC provide level ground.
It’s doubtful that VW will ever make just an EV Scout. Likely a hybrid, even an ICE Scout like Jeep. They may even use the plant to make parts or cars for other manufacturers. Who can’t cost justify building their own plant. Lots of ways VW can make this plant profitable. Things should work out for the best.
Ok Pangloss
Now we know why you’re part of the Optimist Club. “Things should work out for the best.” That’s comforting… “should”.
You might have just said, well they may not make electric vehicles but they’ll make something there… if not maybe they can sell it to Amazon or Walmart for warehouse space.
EVs are a bi-partisan scam. Democrat ex-governor of VA ran one with the CCP when he was in office.
Should NEVER have Gotten in Bed with Them or any other Corporation! I started my First Business in 198o!! I have NEVER Gotten any Money Handed to be By any Government Help! The Heck with Corporate Welfare!!
Those folks who causes for the $70 million wetland mitigation overrun are known (though now operating under a different name, surprise surprise) and continue to seek business with Commerce. Will they be called on to pay back the taxpayer? Will they get future deals? Pass the popcorn!
SC’s political leadership, such as it is, bet big on EVs and lost. In keeping with their storied tradition of ineptitude, they’re now doubling down. This is what happens when we’re led by people whose idea of meeting payroll is SCEIS.
Shut it down now or dozens will go to prison. Better believe it!
prolly too late for that