This pay-for-play scheme continues. Solyndra, Inc. executives donated to Obama’s campaign. Team Obama gave Solyndra a $535 million guaranteed loan, thanks to his $830 billion stimulus, despite the concerns from auditors. Solyndra just filed for bankruptcy and the taxpayers out out of $535 million thanks to Obama’s guaranteed loan.
Solyndra LLC’s workers making solar-power panels in a California factory subsidized by U.S. taxpayers showed “the promise of clean energy isn’t just an article of faith,” President Barack Obama said on a visit to the company in May 2010.
Two months before Obama’s visit, accounting firm PricewaterhouseCoopers LLP warned that Solyndra, the recipient of $535 million in federal loan guarantees, had financial troubles deep enough to “raise substantial doubt about its ability to continue as a going concern.”
However, investors and executives donated lots of money to Obama’s election campaign and were rewarded with the loan despite this information. Pay-to-play rears its head once more.
The Obama administration stood by Solyndra through the auditor’s warning, the abandonment of a planned initial public offering and a last-ditch refinancing where taxpayers took a back seat to new investors. That unwavering commitment has come under increasing scrutiny since the company’s travails culminated in its filing for bankruptcy protection on Sept. 6 and a raid on its headquarters by the Federal Bureau of Investigation two days later.