Incompetence is in the air on Capitol Hill today. Regarding the $1.2 billion in MF Global customer funds that may now be unaccounted for, former CEO (and top Obama fundraiser) Jon Corzine testified that he “simply doesn’t know where the money is.”
U.S. Attorney General Eric Holder is also testifying today before the House Judiciary Committee. Most of the questions have dealt with Holder’s role in the Fast and Furious scandal. However, Rep. Bob Goodlatte (R.., Va.) took the opportunity to ask Holder about another administration scandal: Solyndra.
The law requires the Department of Energy to notify the attorney general in the event that a recipient of a federal loan guarantee defaults on that loan, which is precisely what happened to Solyndra in December 2010. The company was unable to make a required payment under its $535 million loan agreement, and technically went into default. Energy Secretary Steven Chu eventually authorized a restructuring agreement that allowed Solyndra to continue to draw money from its loan, but in testimony before the House Energy and Commerce committee last month, Chu could not confirm whether or not the DOE had notified Mr. Holder that the company had defaulted, as required by law.
So Rep. Goodlatte simply asked Holder if he was ever notified by the DOE that Solyndra had entered a technical default. Holder’s response: “That’s not something that I have seen. That doesn’t mean it might not exist somewhere in the Department [of Justice], I just don’t know.”