SEARCH BLOG: ENERGY and SCAMS
From the website of Rep. Morgan Griffith:
Contact: Maggie Seidel (202) 225-3861
Solyndra Money Burned
Washington, Mar 8 -
“When most of the members were loading up their cars and heading home, the Energy and Power Subcommittee met again to finish its hearing with Secretary Chu. With no Democrats returning for the hearing, and most of the major media gone, Secretary Chu was forced to admit that at the time of the subordination of the loan guarantee to Solyndra the cost of producing Solyndra’s solar panels was greater than the retail price of the competing Chinese product. Remember, subordination saw private financiers or investors illegally put in front of U.S. taxpayers as creditors if Solyndra were to go bankrupt, as it did in August.
“In light of Secretary Chu admitting this was a fact, it is clear that the Administration knew - or should have known - that there was no chance of ever recovering the $170 million* they put at risk by subordinating the loan. DOE was fully aware that the Solyndra business model could not compete with the Chinese. Secretary Chu, DOE, and President Obama took a risky gamble when they lent $535 million to Solyndra. But, when they agreed to the subordination of $75 million** they lit a match to America money because the chance of full recovery was zero percent. Unfortunately, the American taxpayers are left holding the ashes.”
*$170 million is the $75 million subordinated plus the final installments of the loan guarantee – $95 million.
**On February 18, 2011, $75 million was subordinated. When DOE originally started negotiating subordination they had not yet given Solyndra the last $95 million of the loan guarantee.