Bankrupt energy company with political ties to Obama has shady history
HARRISBURG — Pennsylvania Republican Party Chairman Rob Gleason released the following statement regarding the collapse of Solyndra, the politically-connected energy company that served as the Obama Administration’s poster-child for the President’s nearly trillion dollar failed stimulus. Solyndra received a $535 million taxpayer funded loan in 2009 is now bankrupt and a part of a criminal investigation.
“The Obama Administration put politics over sound business sense when the President approved a $535 million taxpayer-funded loan to the now-bankrupt energy firm, Solyndra. I don’ know what’s worse — that $535 million taxpayer dollars were abjectly wasted, or that Solyndra received the funds in the first place because of political ties to the Obama Administration? President Obama is either inept at supporting good business sense, or he simply prioritizes padding his buddies’ pockets over saving and respecting taxpayer dollars,” Chairman Rob Gleason said.
“Now the President is trying to sell us stimulus 2.0. How many more Solyndra’s are in this latest spending package? How many more politically-connected firms will taxpayers have to foot the bill for? We need to get our economy back on track now, and it’s clear that President Obama has no idea what to do.”
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Obama White House Pressured Federal Reviewers About $535 Million Loan, Despite Concerns About Solyndra’s Viability
Obama White House “Tried To Rush Federal Reviewers” To Approve $535 Million Loan For Now Bankrupt Solar Panel Company Solyndra. “The Obama White House tried to rush federal reviewers for a decision on a nearly half-billion-dollar loan to the solar-panel manufacturer Solyndra so Vice President Biden could announce the approval at a September 2009 groundbreaking for the company’s factory, newly obtained e-mails show.” (Joe Stephens and Carol D. Leonnig, “White House Pressed On $500 Million Loan To Solar Company Now Under Investigation,” The Washington Post, 9/13/11)
“This Deal Is NOT Ready For Prime Time.” “‘This deal is NOT ready for prime time,’ one White House budget analyst wrote in a March 10, 2009 email, nine days before the administration formally announced the loan.” (Matthew Mosk, Brian Ross, and Ronnie Greene, “Emails: Obama White House Monitored Huge Loan To ‘Connected’ Firm,” ABC News, 9/13/11)
OMB Staffer Complained About “Time Pressure We Are Under To Sign-Off On Solyndra.” “One e-mail from an OMB official referred to ‘the time pressure we are under to sign-off on Solyndra.’” (Joe Stephens and Carol D. Leonnig, “White House Pressed On $500 Million Loan To Solar Company Now Under Investigation,” The Washington Post, 9/13/11)
Even after Obama took office on Jan. 20, 2009, analysts in the Energy Department and in the Office of Management and Budget were repeatedly questioning the wisdom of the loan. “In one exchange, an Energy official wrote of “a major outstanding issue” — namely, that Solyndra’s numbers showed it would run out of cash in September 2011. (Matthew Mosk, Brian Ross, and Ronnie Greene, “Emails: Obama White House Monitored Huge Loan To ‘Connected’ Firm,” ABC News, 9/13/11)
Did Obama White House Ignore Solyndra’s Dubious Business Model For Political Reasons?
Reviewers Noted “Major Outstanding Issue” With Fact That Solyndra Would Run Out Of Cash By September 2011. “In one exchange, an Energy official wrote of ‘a major outstanding issue’ — namely, that Solyndra’s numbers showed it would run out of cash in September 2011.” (Matthew Mosk, Brian Ross, and Ronnie Greene, “Emails: Obama White House Monitored Huge Loan To ‘Connected’ Firm,” ABC News, 9/13/11)
“Risk Rating For The Project Sponsor [Solyndra] … Seems High.” “There was also concern about the high-risk nature of the project. Internally, the Office of Management and Budget wrote that ‘the risk rating for the project sponsor [Solyndra] … seems high.’” (Matthew Mosk, Brian Ross, and Ronnie Greene, “Emails: Obama White House Monitored Huge Loan To ‘Connected’ Firm,” ABC News, 9/13/11)
Solar Energy Analyst On Solyndra’s Business Model: “It’s Very Difficult To Perceive A Company With A Model That Says, Well, I Can Build Something For Six Dollars And Sell It For Three Dollars.” “”Peter Lynch, a New York-based solar energy analyst, told ABC News it took only a cursory glance through Solyndra’s prospectus to see there was a problem with their numbers. ‘It’s very difficult to perceive a company with a model that says, well, I can build something for six dollars and sell it for three dollars,’ Lynch said. ‘Those numbers don’t generally work. You don’t want to lose three dollars for every unit you make.’”(Matthew Mosk, Brian Ross, and Ronnie Greene, “Emails: Obama White House Monitored Huge Loan To ‘Connected’ Firm,” ABC News, 9/13/11)