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  • White House Subpoenaed, Stimulus Loans Under Investigation

    Two new chapters in the Solyndra scandal were written today, one involving a potential bailout of the company and the latest regarding Congress’s move to subpoena the White House for related communications.

    Meanwhile, the Department of Energy’s Office of Inspector General is “is investigating more than 100 potential instances of criminal abuse of stimulus loan monies,” according to a Daily Caller report.

    The Washington Timesreports on the Solyndra subpoena:

    By a 14-9 party-line vote the Energy and Commerce Committee’s investigative subcommittee authorized issuing a subpoena for any White House documents related to Solyndra, which received renewable energy loan guarantees under President Obama’s stimulus program. The request for documents could include details of the president’s own travel and communications.

    The White House immediately took issue with the decision, saying it has “cooperated extensively with the committee’s investigation by producing over 85,000 pages of documents, including 20,000 pages produced just yesterday afternoon,” as Fox News reports.

    Congress is undertaking an investigation following news this summer that the company was going bankrupt after receiving a $535 million taxpayer-backed loan guarantee from the Department of Energy. For President Obama, the company was a hallmark of his “green jobs” plan to stimulate the economy, and according to The Hill, Obama Administration officials went so far as to consider a bailout plan to keep the company from going under:

    Under the August plan, which was outlined in nearly 1,200 pages of documents the Obama administration released Wednesday evening, private investors would have put about $100 million into Solyndra, the company that received a $535 million loan guarantee in 2009.

    Meanwhile, the Energy Department would have agreed to convert some of Solyndra’s debt to the federal government into a partial stake in the company. The agreement would have also authorized the Energy Department to appoint two independent directors to Solyndra’s board.

    The Solyndra investigation is just one of many focusing on the Obama Administration, which advertised that under its stimulus plan, scores of Americans would be put to work thanks to a massive outlay of taxpayer cash. But loans made under that plan are now being investigated for possible criminal activities, as indicated by Energy Department Inspector General Gregory Friedman in congressional testimony yesterday.

    According to the Daily Caller, Friedman says those investigations have led to five criminal prosecutions and more than $2.3 million in recovered stimulus funds. He also criticized the department’s loan program, saying, “The Loan Guarantee Program had not [been] properly documented and as such could not always readily demonstrate how it resolved or mitigated relevant risks prior to granting loan guarantees.”

    One solution to the problem? Heritage’s Nicolas Loris says that Congress should scrap the energy loan guarantee programs altogether:

    There are two kinds of companies that seek loan guarantees: (1) those that are economically uncompetitive, and (2) those that can be competitive. The former need loan guarantees to stay alive. But as we’ve seen with Solyndra, even they will eventually fail. For those that can be competitive, loan guarantees are nothing more than handouts that pad their bottom lines. Neither case can be justified.

    These clean energy loan and loan guarantee programs don’t just need to be cut. They need to be done away with entirely.

    Posted in Featured [slideshow_deploy]

    7 Responses to White House Subpoenaed, Stimulus Loans Under Investigation

    1. Mike, Wichita Falls says:

      Rather than trying to improve oversight of government loans, entitlement programs and bureaucracies, Congress should just eliminate them altogether. They are so busy and consumed with oversight of unconstitutional duties that they neglect their Constitutional ones, the most important of which is national security.

    2. carol,az says:

      Reported, 22 Million jobless in America.
      Most states and their budgets are operating similar to those portrayed in," the walking dead."
      "100 potential instances for criminal abuse for stimulus loans money" and Fast & Furious another example of the miss-use of stimulas money, and throw-in murder, has been in court, going-on nine months.
      Good luck with the 100 cases.
      According to our rabid Justice Dept. it will further weaken our economy by telling the courst which cases will be heard and which cases will be given Executive Fiat.
      "But as we've seen with Solyndra , even they will eventurally fail."
      This bail-out is a disgusting punch in the stomach to all of our unemeployed citizens. Like most ideas coming from CA.and from this administration's it must come with a pre-market warning.
      Made in D.C. with your grandkids money. RUN LIKE HELL!.

    3. rmgdnnow says:

      This is one more example of the corrupt or apparently corrupt practices of the corrupt Obama administration.
      There was no reason or excuse for the "loan" of $525 B to a company which was already considered to be going bankrupt. The other "loans" are similar. If you consider the cost of a windmill generator or bank of solar panels and the expense of installation and connection the grid, not to mention the essential maintenance costs. A huge wind generator was installed at Traverse City, Michigan in about the year 2000 on a knoll, receiving winds from nearby Lake Michigan. I have heard absolutely nothing in the media as to whether this expensive project ever was amortized, let alone making a profit for the company which installed it. Cost/benefit analyses of these installations are, as far as I have seen, nonexistent, at least in the media. It sounds like a monstrous boondoggle for politicians and smart, connected operators; where did the $525 B go? Will the taxpayers ever see any of it to come back to the Treasury? Don't hold your breath………

    4. Bobbie says:

      there was no reason for government to provide exceptions to rules applied to all behind the backs of some. responsibilities and accountabilities belong in government and society from housing to business to banking! Remove government control and the crisis setters!

    5. Lynn B. DeSpain says:

      It is often proven difficult to pry the spider from its own web. Dangerous, and time consuming in the attempt, but satisfying when the bug is alone and helpless, to be studied.

    6. Cam says:

      It seems like the game no longer has rules. This game is designed to give the allusion of there can be a winner. This game has been played for a long time, but the players of the worker class can no longer be the base of holding the cards. It is time to set some rules before the game starts. When you play go fish you know the rules, but when you play who gets the money and how it is going to be spent or paid back there are no rules. So let’s play spin the bottle and see what happens.

    7. Jason M says:

      The first paragraph of this article disturbs, and it is because it focuses on The White House "bailing" out a company. To me, this is so wrong
      because the free market and capitalism produces winners and failures. When a business succeeds it is a great thing, when it fails it is tragic.
      The reason the free market works is because the government does not get involved. When the government gets involved in the free market to
      protect its own interest, it gives an unfair advantage to one business over the other. What makes one business more special than the other?
      Less government is the key to having the free market, where individuals have the motivation and the opportunity to succeed, free from government
      intervention. When the government gets involved it gains more control over the outcome of the free market. Instead of being more of a referee
      and enforcing the rules, it is actually getting involved and playing the game. In terms of bailout and stimulus payments the government is
      getting involved and trying to control and change the market in order to create jobs, by using taxpayer money to fund what 'it thinks" is the
      solution. This shows how the government is getting bigger and dictating where and how an individuals income will be spent.

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