All About Solyndra Scandal

October 22 00:00 2011

New York, October 22 (RainbowNewsLine.com) – Solyndra, a solar energy company, was given a loan guarantee of $535 million by the Department of Energy in March 2009 to promote American growth in green technology. The main aim of the loan was to create 4,000 jobs and reduce the cost of making the panels. Last month, the company filed for bankruptcy protection and fired all but 1,000 of its workers. It is now facing federal investigation for misrepresentation of its finances.

The curtain is slowly rising over how this happened. Emails released by the State Department reveal that some White House officials recognized the huge risk in making the investment whereas others recklessly advocated for the stimulus. About $1.9 million was spent by the company in lobbying for the loan.

A major campaign dealer also invested in Solyndra. Stephen Skinner, a senior executive in DOE had actively urged his colleagues to approve the loan. There was a rush to pass the loan so that Obama could talk about the creation of green jobs in his stimulus package.

The failure of Solyndra and its bankruptcy can be attributed to insufficient analysis and a risky decision regarding selecting a new solar energy technology that revolved around a new tubular design and relied on markets favourable for low production costs. Solyndra was bound to fail when the design gave no extra advantage and prices increased. The other factor that needs investigation is the corruption within the decision-making process.

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