9/24/2011

With a half billion dollars in government money, Solyndra started making a lot of wasteful spending

Would a bank let its loan be used on wasteful spending? After stories of $16 donuts, this fits right in. From the Fiscal Times:

Former employees of Solyndra, the shuttered solar company that exhausted half a billion dollars of taxpayer money, said they saw questionable spending by management almost as soon as a federal agency approved a $535 million government-backed loan for the start-up.

A new factory built with public money boasted a gleaming conference room with glass walls that, with the flip of a switch, turned a smoky gray to conceal the room’s occupants. Hastily purchased state-of-the-art equipment ended up being sold for pennies on the dollar, still in its plastic wrap, employees said.

As the $344 million factory went up just down the road from the company’s leased plant in Fremont, Calif., workers watched as pallets of unsold solar panels stacked up in storage. Many wondered: Was the factory needed?

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


Here is a nice summary of the basic point in the Wash Post piece:

The Fed money was explicitly tied to being *solely* used to build Fab 2. Solyndra could not use the loan proceeds for *anything* else.

So . . . they built Fab 2. Even though they were under capacity at Fab 1; according to the Washington Post, "As the $344 million factory went up just down the road from the company's leased plant in Fremont, Calif., workers watched as pallets of unsold solar panels stacked up in storage. Many wondered: Was the factory needed?"

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1 Comments:

Blogger Chas said...

The Investor-in-Chief blew half a billion dollars of our money and now he wants more.
He has proven that he is unfit to be the steward of American tax dollars. He can try to shift the blame for many things that happened on his watch, but he was intimately involved with Solyndra. Bush didn't sit in on those meetings with Solyndra, Obama did.
Obama is either well-intentioned but incompetent, or willfully destroying the US economy, or he just doesn't really care. Whatever the explanation is, he has to go. He's causing too much harm to too many Americans. His ego won't allow him to resign, or even choose not to run, but he's made a mess of things. He'll have to be told to go on Election Day.

9/24/2011 6:30 AM  

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