WASHINGTON — Congressional watchdogs are questioning the government’s decision to award a $700 million coronavirus relief loan to a struggling trucking company on grounds its operations are critical for maintaining national security.
YRC Worldwide, which is headquartered in Overland Park, provides transportation and logistics services, such as delivering food, electronics and other supplies to military locations around the country.
The Defense Department is a major YRC client.
The department also sued YRC in 2018 for overcharging the government for freight carrier services and making false statements.
Under terms of the loan, U.S. taxpayers, through the Treasury Department, will take a 30% stake in the company.
The Congressional Oversight Committee also said there appeared to be a large risk of taxpayers losing money on the investment.
