Solyndra Employees Tell of Questionable Moves

Thursday, 22 Sep 2011 10:59 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Although the collapse of Solyndra seems to have mystified an Obama administration intent on sending the solar company a half-billion dollars in government backed loans, the company’s employees were well aware that things were not going well. They tell of piles of unsold inventory, purchases of unneeded high-end equipment, and money quickly spent, The Washington Post reported.

The Solyndra case has propelled accusations of cronyism in the administration, and employees say that management’s questionable spending began almost as soon as the $535 million government-back loan was approved. A $344 million factory was built that included glass walls that could turn opaque with the flip of a switch and state-of-the-art equipment that was never removed from its plastic wrap and later sold for pennies on the dollar. Employees also said that they noticed inventory beginning to stack up in 2010, the Post reported.

“After we got the loan guarantee, they were just spending money left and right,” former Solyndra engineer Lindsey Eastburn told the Post. “Because we were doing well, nobody cared. Because of that infusion of money, it made people sloppy.”

The company also developed an appetite for federal money, hiring a former Senate staffer to ramp up Washington lobbying efforts. The Post reported that within a week of getting an Energy Department loan guarantee, they applied for another $400 million. That loan was not approved.

Solyndra spent more than $1 million on lobbying since 2008. The company spent $160,000 a year in 2008 and 2009. However, as their financial troubles grew, so did their lobbying. By 2010, the company’s lobbying expenses had grown to $550,000, and this year’s numbers are already at $220,000, the Post reported.

Solyndra is now under federal investigation, with both the House and the Justice Department looking into the matter. Company CEO Brian Harrison and CFO Bill Stover were to testify before a House committee but have decided to avail themselves of their Fifth Amendment rights. The investigations are probing whether the company misled the government about their financial state and the role of White House officials in pushing for the federal loans for the company promoted by President Barack Obama, the Post reported.

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Landslide Splits Home in Wyoming

Saturday, 19 Apr 2014 08:23 AM

A sudden lurch in a creeping landslide in the northwest Wyoming resort town of Jackson split a house in two and forced w . . .

Obama: Easter a Time to Reflect on Hope, Renewal

Saturday, 19 Apr 2014 07:13 AM

President Barack Obama is encouraging Americans to draw strength and inspiration from the Easter and Passover holidays.I . . .

Atheist Sues After New Jersey Rejects License Plate

Friday, 18 Apr 2014 22:31 PM

Shannon Moran, of Maurice River Township has filed a lawsuit against the state Motor Vehicle Commission, saying it viola . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved