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Obama, Chu ‘Instrumental’ in Solyndra Loan Offer



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Though the White House has denied having any special relationship with Solyndra (it’s just another boondoggle in the administration’s extensive portfolio of failed investments), that line is becoming less and less credible by the day. Consider this statement from Solyndra’s own website (still up and running, at least for now) announcing the initial loan offer:

Fremont, CA, March 20, 2009 – Solyndra, Inc. announced today that it is the first company to receive an offer for a U.S. Department of Energy (DOE) loan guarantee under Title XVII of the Energy Policy Act of 2005. Solyndra, a Fremont, California-based manufacturer of innovative cylindrical photovoltaic systems, will use the proceeds of a $535 million loan from the U.S. Treasury’s Federal Financing Bank to expand its solar panel manufacturing capacity in California.

“The leadership and actions of President Barack Obama, Energy Secretary Steven Chu and the U.S. Congress were instrumental in concluding this offer for a loan guarantee,” said Solyndra CEO and founder, Dr. Chris Gronet. “The DOE Loan Guarantee Program funding will enable Solyndra to achieve the economies of scale needed to deliver solar electricity at prices that are competitive with utility rates. This expansion is really about creating new jobs while meaningfully impacting global warming.”

Gronet is currently the target of an FBI investigation. This announcement went forward despite concerns from OMB staff that, according to one e-mail, “this deal is NOT ready for prime time.”

Then there’s this intriguing nugget tacked on at the end of the statement:

Goldman, Sachs & Co. acted as exclusive financial advisor to Solyndra in connection with this loan guarantee application.

Wonderful.

(h/t Ace of Spades)



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