The White House is supposedly ordering a review of the Energy Department's loan guarantee program in the wake of the growing scandal over solar company Solyndra, which is a California-based company that went bankrupt after receiving a $528 million federal loan. Congressional Republicans had been investigating the bankruptcy of Solyndra amid revelations that federal officials were warned it had problems but nonetheless continued to support it. The House Energy and Commerce Committee could possibly vote as early as this week to subpoena White House records.
According to Wikipidea, the U.S. Department of Energy made a "conditional commitment" to a $535 million loan guarantee to support Solyndra's construction of a commercial-scale manufacturing plant for its proprietary for its solar voltaic panels. The White House had scheduled a press event for September 4, 2009 and the federal reviewers approved the loan September 2, 2009. After Solyndra received the loan guarantee, the Federal Financing Bank, a part of the Department of Treasury, loaned solyndra the money on September 4, 2009. As it turned out, Solyndra wasn't successful with selling solar panels. One of the problems was market conditions which wasn't favorable to Solyndra along with stiff competition from China whose companies constructed those panels at a lower cost. Let's move fast forward. On August 31, 2011, Solyndra announced it was filing for Chapter 11 bankruptcy protection, laying of 1100 workers, and shutting down the facility. On September 8, 2011 Solyndra was raided by the FBI investigating the company.
It's typical of President Obama to invest stimulus money into a business that doesn't have much of a chance to succeed. There isn't that much demand for solar panels. However, the Obama administration wants to force Americans to invest in "green technologies." It was money thrown down a rathole. To read the full story, click on the above link at FoxNews.com.
No comments:
Post a Comment