Report: Watchdogs Find No Wrongdoing In Proposed Kodak Loan

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ROCHESTER, NY (WXXI) – A government watchdog agency has found no wrongdoing in the process that led up to the announcement last summer of a proposed loan to Eastman Kodak, a loan that ended up not happening after concerns about how it came together.

According to the Wall Street Journal, the inspector general of the agency that brokered the deal, the U.S. International Development Finance Corporation, found no evidence that employees of that agency had any conflicts of interest in the plans.

And the inspector general, Anthony Zakel did not find any evidence of misconduct on the part of officials with that federal agency, the DFC, according to the WSJ.

The proposed $765 million loan to Kodak was announced last July as part of the company’s plans to make ingredients used in generic pharmaceuticals. But questions were raised about the timing of the loan announcement. The Securities and Exchange Commission and some congressional committees announced investigations and the DFC put the loan on indefinite hold.

Kodak had also conducted its own internal probe, and that review found the company didn’t break any laws but did find some issues involving corporate governance.

And last month, Kodak CEO Jim Continenza said that the company still plans to move ahead with the pharmaceutical business, even if it doesn’t get a government loan.