Is the taxpayers' lost $535 million in the green-energy company Solyndra just an unfortunate business failure, or is there something more scandalous involved? You should read every word of this front-page New York Times article. Sure, it says that "no evidence has emerged that political favoritism played a role in what administration officials assert were merit-based decisions." But the story is full of smoking guns. Here's the opening:
President Obama’s visit to the Solyndra solar panel factory in California last year was choreographed down to the last detail---the 20-by-30-foot American flags, the corporate banners hung just so, the special lighting, even coffee and doughnuts for the Secret Service detail. “It’s here that companies like Solyndra are leading the way toward a brighter and more prosperous future,” the president declared in May 2010 to the assembled workers and executives. The start-up business had received a $535 million federal loan guarantee, offered in part to reassert American dominance in solar technology while generating thousands of jobs. But behind the pomp and pageantry, Solyndra was rotting inside, hemorrhaging cash so quickly that within weeks of Mr. Obama’s visit, the company canceled plans to offer shares to the public. Barely a year later, Solyndra has become one of the administration’s most costly fumbles after the company declared bankruptcy, laid off 1,100 workers and was raided by F.B.I. agents seeking evidence of possible fraud. Solyndra’s two top officers are to appear Friday before a House investigative committee where, their lawyers say, they will assert their Fifth Amendment right against self-incrimination.And there's more:
[Solyndra's] lobbyists corresponded frequently and met at least three times with an aide to a top White House official, Valerie B. Jarrett, to push for loans, tax breaks and other government assistance... Energy Department preliminary loan approvals---including the one for Solyndra---were granted at times before officials had completed mandatory evaluations of the financial and engineering viability of the projects. ...[T]he company spent nearly $1.8 million on Washington lobbyists, employing six firms with ties to members of Congress and officials of the Obama White House. None of the other three solar panel manufacturers that eventually got federal loan guarantees spent a dime on lobbyists... Solyndra’s loan guarantee was the highest of the four companies... Five lobbyists employed by the McBee group eventually worked on Solyndra’s behalf, including Michael Sheehy, a former top aide to Representative Nancy Pelosi of California, the House Democratic leader. Solyndra has paid McBee Consulting $340,000 since 2009... Solyndra and its lobbyists continued to provide assurances to the White House and the Energy Department, which still could have stopped the flow of federal money...The story might well be read in conjunction with yesterday's Washington Post story, which stressed "questionable spending by management almost as soon as a federal agency approved a $535 million government-backed loan for the start-up... 'Because of that infusion of money, it made people sloppy.'"
Posted on September 23, 2011 Posted to Cato@Liberty