Linswritings

More details emerging about Solyndra failure

Posted on: September 29, 2011

Here is the latest and very interesting article from Tom  Benson on Town Hall today. Not only did Obama get a detailed briefing of  the chances that Solyndra would go bankrupt but also that the company was  spending recklessly on extravagant goodies and services. Here is just the tip  of the iceberg on this company.

“The glass-and-metal building that Solyndra LLC began  erecting alongside Interstate 880 in Fremont, California, in September 2009 was  something the Silicon Valley area hadn’t seen in years: a new factory. It wasn’t just any factory. When it was completed at an estimated cost of $733  million, including proceeds from a $535 million U.S. loan guarantee, it covered  300,000 square feet, the equivalent of five football fields. It had robots that  whistled Disney tunes, spa-like showers with liquid-crystal displays of the  water temperature, and glass-walled conference rooms.

Commercial real-estate agents in the region wondered why a  new factory was being built in the Silicon Valley region, the epicenter of some  of the priciest real estate in the country, where most new construction  consists of office space.”

But wait, there’s more.  “Not only did Solyndra receive a massive taxpayer-funded windfall thanks to a fast-tracked political decision that flew in the face of federal  bookkeepers, the company also received a favorable (and convenient!) ruling  from the IRS.

Solyndra not only received a $500 million loan guarantee, it  also got a favorable ruling from the IRS. According to “California  Watch” — a unit of the Center For Investigative Reporting — the IRS  decision gave Solyndra’s customers a 10-percent tax deduction and it was later  increased to 30 percent.  And the timing  of the ruling, just weeks before getting the stimulus loan, raises questions
about whether the White House pulled strings for Solyndra, at other agencies.

“The DOE then faced a difficult choice,” Silver told the  committee. “(A) to refuse the restructuring terms . . . ensuring the company
would close, or (B) to allow the restructuring, giving it and its more than  1,000 workers a fighting chance and the government a higher chance of recovery”  of taxpayer money.  The Energy Department  pushed for the restructuring despite preliminary warnings from OMB staff  members that restructuring Solyndra could cost taxpayers $168 million more than  liquidation.

The Energy Department’s argument eventually won out, and  taxpayers got hosed.  Again.  In yet another damaging revelation — this is  getting exhausting — the Wall Street Journal reports that Solyndra actually violated the terms of its loan guarantee agreement in 2010 by defaulting on  required payments (!)”

So there you have it. Details are seeping out slowly on this  green energy debacle by the Administration. I’m sure the executives took a nice  compensation from this company and now are hiding out in Costa Rica.  As I said before, will this be Obama’s “Watergate”  moment? Or will it be covered up and ignored as so many of his Administration’s  problems are today – i.e. Operation Fast and Furious.

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2 Responses to "More details emerging about Solyndra failure"

Can we spell corrupt. Of course Obama can’t say corpsman he instead 3 times said CORPSE MAN, sort of like campaigning in all 57 states.

John Wilder

Can we spell corrupt? Of course Obama can’t say corpsman he instead 3 times said CORPSE MAN, sort of like campaigning in all 57 states.

John Wilder

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