ADMINISTRATION IGNORED WARNING SIGNS OF SOLYNDRA’S FINANCIAL TROUBLES IN COMMITTING FEDERAL DOLLARS TO LOAN GUARANTEE 
 

Washington, Aug 31 -

“In an apparent rush to push stimulus dollars out the door, the Obama Administration wasted $535 million in taxpayer funds in guaranteeing a loan to a firm that has proven to be unviable in the global market,” said Rep. Cliff Stearns (R-FL), Chairman of the House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations. “For months, we have been investigating how and why nearly half a billion dollars in taxpayer money was committed to this financially troubled company.” 

According to The Center for Public Integrity, one of Solyndra’s major investors was George Kaiser, an Oklahoma oil billionaire who raised large sums of money for Obama during the 2008 election.  This raised concerns that politics my have played a role in putting taxpayer dollars at risk in making this loan guarantee.  In addition, last year the Government Accountability Office issued an unusually blunt assessment of the Energy Department's loan program, concluding that the department had "treated applicants inconsistently, favoring some and disadvantaging others."

Using stimulus funds to promote job creation, the Department of Energy awarded a $535 million loan guarantee to Solyndra and the Obama Administration was supposed to review the loan to ensure that taxpayer money was not put at risk. Stearns has been investigating this loan program, and specifically the loan to Solyndra, and was forced to subpoena the Administration for records involving this loan guarantee.

“Although the Administration has been uncooperative with this investigation, this decision by Solyndra does not end our inquiry and we will continue to look into how this loan guarantee was approved and why the American taxpayers are mostly likely out $535 million,” added Stearns.  “In addition, this brings up concerns if taxpayers were adequately protected during the restructuring of the loan to Solyndra.”