As the drama continues to unfold, Solyndra, Obama’s poster
child for green jobs, took center stage on Wednesday when Congress held a
hearing about the $535 million loan from the Department of Energy. The company
has been surrounded with controversy with its recent bankruptcy filing and now
a raid by the FBI.
The new term that conservatives and the RNC have been using is
“Solargate”. Many are jumping on the bandwagon gathering evidence against Pres.
Obama’s support for green technology that failed and the original failed
stimulus plan that has done nothing to boost the economy. Due to this blunder,
the taxpayers could potentially lose a $535 million. This has sounded an alarm
to take a look at the remaining $10 billion in loans that the Department of
Energy has guaranteed.
Because of the bankruptcy filing, Solyndra CEO Brian
Harrison was not able to testify on Wednesday. Due to the bankruptcy, they have
delayed their appearance to sometime next week. Most legal experts are
speculating that Brian Harrison and CFO Bill Stover will plead the Fifth
Solyndra first applied for a loan from the department of
energy back in 2006 when George W. Bush was president. Although the review of
the application took place in 2007, the law was not awarded until 2009 after
Obama took office. It was to be financed by the federal stimulus plan that was
passed by Congress. After giving Solyndra the loan, the president gave his high
profile speech at the factory in 2010.
Back in February, investors and the department of energy
agreed to restructure the debt of Solyndra. The company asked for an additional
$75 million as Harrison assured the investors that their revenue would double
even though the company was preparing to cut its revenue projections for the
year. Then in August they asked for another $75 million prior to filing
bankruptcy. The investors balked at the idea unless the debt would be
restructured the second time. The Department of Energy rejected the plan of debt
restructuring and the next day the company announced they were filing for
bankruptcy and laying off 1100 employees.