I'm Politically Correct, I'm BANKRUPT!!!
:moon:
Obama administration rushed Solyndra deal, House Republicans say
Concerns about a $535-million loan guarantee for solar panel maker Solyndra were ignored as the Obama administration rushed the deal, Republicans say.
1 2 next | single page
Executives of solar equipment maker Solyndra Inc. canceled their appearance before a congressional committee. Above, Solyndra headquarters in Fremont, Calif. (Paul Sakuma / Associated Press)
Share68Comments 5Also
Solyndra: House committee grills officials over failed solar firm
Solyndra executives back out of congressional hearing
FBI raids solar panel firm Solyndra after bankruptcy filing
Opinion L.A.: Obama's tie to (bankrupt) Solyndra
Solyndra and the stimulus
By Jim Puzzanghera and Stuart Pfeifer, Los Angeles Times
September 15, 2011
Reporting from Washington and Los Angeles? The Obama administration ignored "red flags" about failed Northern California solar panel manufacturer Solyndra, rushing through a $535-million loan guarantee for the company in 2009 and improperly restructuring the deal last winter in a failed attempt to boost the economy and the green energy industry, House Republicans said.
A House Energy subcommittee released internal administration documents Wednesday showing a push to finish work on the loan package in mid-2009 so that Vice President Joe Biden could announce it. And lawmakers spent four hours grilling two administration officials about the decision to risk so much taxpayer money on Solyndra's uncertain technology.
"This was a half-billion-dollar mistake," said Rep. Brian Bilbray (R-Solana Beach).
But the documents failed to produce any smoking guns in a brewing controversy that Republicans are using to try to discredit Obama's push for additional stimulus spending in his new jobs bill.
--------------------------------------------------------------------------------
For the record: A previous version of this article, in one paragraph, incorrectly said the loan package was being worked on last summer. It was summer 2009.
--------------------------------------------------------------------------------
Though the documents indicated concerns about Solyndra's financial prospects, they also showed that its application began moving forward during the Bush administration. The rush, in the summer of 2009, came after the Energy Department had approved the package and was awaiting a final estimate on its budgetary cost.
Obama administration officials defended the decision to back Solyndra in the face of huge investments in solar technology by China. They said the loan guarantee wasn't rushed and that the company ultimately failed because of unforeseen circumstances: a 42% drop in prices for competing solar panels this year and an economic crisis in Europe that significantly reduced demand.
"It's a disappointing outcome, but it comes with the terrain of backing innovative technology," said Jeffrey Zients, deputy director of the White House Office of Management and Budget.
Last year, Obama hailed Solyndra as an innovative company that would use stimulus money to create jobs and help lead the economic recovery. But the firm laid off most of its 1,100 workers Aug. 31 and announced it would cease operations. It filed for Chapter 11 bankruptcy last week.
Two days later, agents with the FBI and Energy Department's Inspector General's office raided Solyndra's Fremont headquarters. The FBI hasn't said what prompted the search.
Under questioning Wednesday, Obama administration officials said they did not know the focus of the investigation. Lawmakers also said they were in the dark.
But Reps. Henry A. Waxman (D-Beverly Hills) and Diana DeGette (D-Colo.) said they were upset that Solyndra executives said this summer that the company would double its revenue this year.
"I'm perplexed how they could be in my office in July telling me things were looking better and filing for bankruptcy two months later," DeGette said.
The criminal probe is likely focusing on whether Solyndra executives made misleading statements or omissions in their dealings with government officials, said John Hueston, a former lead prosecutor in the case against Enron's top executives who now practices white-collar defense at Irell and Manella.
He said he wouldn't be surprised if the company's failure caused the FBI to act quickly. Often, a bankruptcy will cause law enforcement to seize evidence that might disappear when the company shuts down.
DeGette said she had not been contacted by the FBI. And Jonathan Silver, executive director of the Energy Department's Loan Programs Office, said he had no indication Solyndra provided inaccurate information.
"I have no reason sitting here today to believe we were misled," Silver told the subcommittee.
Two Solyndra executives, including Chief Executive Brian Harrison, were scheduled to testify Wednesday, but canceled because they said they were focused on a potential sale of the company and dealing with the bankruptcy and criminal investigation.
Harrison and Chief Financial Officer W.G. Stover Jr. are scheduled to testify at another hearing next week. Subcommittee chairman Rep. Cliff Stearns (R-Fla.) said he wanted to question Energy Secretary Steven Chu as well.
Copyright ? 2011, Los Angeles Times
1 2 next | single page
:moon:
Obama administration rushed Solyndra deal, House Republicans say
Concerns about a $535-million loan guarantee for solar panel maker Solyndra were ignored as the Obama administration rushed the deal, Republicans say.
1 2 next | single page
Executives of solar equipment maker Solyndra Inc. canceled their appearance before a congressional committee. Above, Solyndra headquarters in Fremont, Calif. (Paul Sakuma / Associated Press)
Share68Comments 5Also
Solyndra: House committee grills officials over failed solar firm
Solyndra executives back out of congressional hearing
FBI raids solar panel firm Solyndra after bankruptcy filing
Opinion L.A.: Obama's tie to (bankrupt) Solyndra
Solyndra and the stimulus
By Jim Puzzanghera and Stuart Pfeifer, Los Angeles Times
September 15, 2011
Reporting from Washington and Los Angeles? The Obama administration ignored "red flags" about failed Northern California solar panel manufacturer Solyndra, rushing through a $535-million loan guarantee for the company in 2009 and improperly restructuring the deal last winter in a failed attempt to boost the economy and the green energy industry, House Republicans said.
A House Energy subcommittee released internal administration documents Wednesday showing a push to finish work on the loan package in mid-2009 so that Vice President Joe Biden could announce it. And lawmakers spent four hours grilling two administration officials about the decision to risk so much taxpayer money on Solyndra's uncertain technology.
"This was a half-billion-dollar mistake," said Rep. Brian Bilbray (R-Solana Beach).
But the documents failed to produce any smoking guns in a brewing controversy that Republicans are using to try to discredit Obama's push for additional stimulus spending in his new jobs bill.
--------------------------------------------------------------------------------
For the record: A previous version of this article, in one paragraph, incorrectly said the loan package was being worked on last summer. It was summer 2009.
--------------------------------------------------------------------------------
Though the documents indicated concerns about Solyndra's financial prospects, they also showed that its application began moving forward during the Bush administration. The rush, in the summer of 2009, came after the Energy Department had approved the package and was awaiting a final estimate on its budgetary cost.
Obama administration officials defended the decision to back Solyndra in the face of huge investments in solar technology by China. They said the loan guarantee wasn't rushed and that the company ultimately failed because of unforeseen circumstances: a 42% drop in prices for competing solar panels this year and an economic crisis in Europe that significantly reduced demand.
"It's a disappointing outcome, but it comes with the terrain of backing innovative technology," said Jeffrey Zients, deputy director of the White House Office of Management and Budget.
Last year, Obama hailed Solyndra as an innovative company that would use stimulus money to create jobs and help lead the economic recovery. But the firm laid off most of its 1,100 workers Aug. 31 and announced it would cease operations. It filed for Chapter 11 bankruptcy last week.
Two days later, agents with the FBI and Energy Department's Inspector General's office raided Solyndra's Fremont headquarters. The FBI hasn't said what prompted the search.
Under questioning Wednesday, Obama administration officials said they did not know the focus of the investigation. Lawmakers also said they were in the dark.
But Reps. Henry A. Waxman (D-Beverly Hills) and Diana DeGette (D-Colo.) said they were upset that Solyndra executives said this summer that the company would double its revenue this year.
"I'm perplexed how they could be in my office in July telling me things were looking better and filing for bankruptcy two months later," DeGette said.
The criminal probe is likely focusing on whether Solyndra executives made misleading statements or omissions in their dealings with government officials, said John Hueston, a former lead prosecutor in the case against Enron's top executives who now practices white-collar defense at Irell and Manella.
He said he wouldn't be surprised if the company's failure caused the FBI to act quickly. Often, a bankruptcy will cause law enforcement to seize evidence that might disappear when the company shuts down.
DeGette said she had not been contacted by the FBI. And Jonathan Silver, executive director of the Energy Department's Loan Programs Office, said he had no indication Solyndra provided inaccurate information.
"I have no reason sitting here today to believe we were misled," Silver told the subcommittee.
Two Solyndra executives, including Chief Executive Brian Harrison, were scheduled to testify Wednesday, but canceled because they said they were focused on a potential sale of the company and dealing with the bankruptcy and criminal investigation.
Harrison and Chief Financial Officer W.G. Stover Jr. are scheduled to testify at another hearing next week. Subcommittee chairman Rep. Cliff Stearns (R-Fla.) said he wanted to question Energy Secretary Steven Chu as well.
Copyright ? 2011, Los Angeles Times
1 2 next | single page
