Solyndra execs keep mum on $528M gov't loan

Solyndra CEO Brian Harrison, left, and Chief Financial Officer Bill Stover are sworn in on Capitol Hill in Washington Sept. 23, 2011, prior to testifying before a House Oversight and Investigations subcommittee. / AP Photo

Updated at 11:47 a.m. ET

WASHINGTON - Top executives from a bankrupt California solar energy company declined to testify before a congressional hearing investigating their half-billion dollar government loan.

Solyndra Inc. CEO Brian Harrison and the company's chief financial officer, Bill Stover, both invoked their Fifth Amendment right to decline to testify to avoid self-incrimination.

Harrison told the House Energy and Commerce Committee Friday: "On advice of counsel, I respectfully decline to answer any questions."

Stover did the same.

Lawmakers from both parties said they were disappointed, but said that silence from the two executives would not stop them from pursuing their investigation into a $528 million loan that Solyndra Inc. received from the Energy Department in 2009.

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The panel's chairman, Rep. Fred Upton, R-Mich., compared the Solyndra loan to the Great Train Robbery in England in the 1960s.

"It appears we have a great heist of over half a billion dollars and ... maybe even co-conspirators called the U.S. government," Upton said.

Upton faulted the Obama administration for its role in the loan, saying at a minimum the Energy Department did not complete due diligence on the company, which lost hundreds of millions of dollars in the years before the loan was approved.

He called the loan "reckless use of taxpayer dollars on a company that was known to pose serious risks before a single dime went out the door."

Rep. Cory Gardner, R-Colo., said it was important for the committee's investigaton to continue.

"The American people deserve answers. Half a billion dollars is missing," he said.

GOP lawmakers said they were expanding their inquiry into the Solyndra loan, which has become a rallying point for Republican critics of the administration's push for so-called green jobs.

Lawmakers said they want the administration to turn over all communications between the Energy Department and White House related to Solyndra, as well as all communications between Energy and the Treasury, which lent Solyndra the money.

Committee leaders said the administration may have violated the law when it restructured Solyndra's loan in February in such a way that private investors moved ahead of taxpayers for repayment in case of default. The economic stimulus law provides for taxpayers to be ahead of other creditors in the event of bankruptcy or default.

Deputy Energy Secretary Daniel Poneman said Thursday that the restructuring was "entirely legal," noting that another aspect of the law requires Chu and other officials to protect the overall interests of taxpayers. He said the restructuring accomplished that because it gave the struggling company a better chance to succeed.

Solyndra filed for Chapter 11 bankruptcy protection earlier this month and laid off its 1,100 employees.

The Fremont, Calif.-based company was the first renewable-energy company to receive a loan guarantee under a stimulus-law program to encourage green energy and was frequently touted by the Obama administration as a model. President Obama visited the company's Silicon Valley headquarters last year, and Vice President Joe Biden spoke by satellite at its groundbreaking ceremony.

Since then, the company's implosion and revelations that the administration hurried Office of Management and Budget officials to finish their review of the loan in time for the September 2009 groundbreaking has become an embarrassment for Mr. Obama as he tries to sell his new job-creation program.

[thomasbleser]

Maybe they should get the CIA to kidnap these scumbags and use the same interrogation techniques on them that have been standard procedures in Guantanamo Bay, Abu Gherub, Diego Garcia, and God knows how many other hell holes around the world. It wouldn't tell us anything even an idiot doesn't know by now, but at least we'd have the satisfaction of getting at least something for our money. These maggots probably got their start working for Enron when they destroying Hughes Aircraft's wind energy program in California.

[credibility2]

...of course they're going to remain silent...if they open their yaps they'll be implicating the complicity of our president and another pay to play scheme...

[luadda22]

by retm-w September 23, 2011 4:00 PM EDT
And the taxpayers are subsidizing it.

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You're right, and then George Kaiser gets a bunch of his other "oil" buddy's to give money for Obama and bundles it. Then talks the administration into re-writing the loan so in event of failure he gets paid before the government (tax payers). Then right before the company files bankruptcy another of Kaiser's companies' brokers a deal to transfer the entire inventory of solar panels and accounts receivable to a newly created company.

[DETracy]

I believe those two should have had to walk out of the hearing room in shackles. They are obviously guilty of something or they wouldn't have invoked the Fifth.

[Jim1900]

At least the Republicans are merely trying to prevent solar energy companies from succeeding rather than trying to find the next country to invade. I think President Obama has done an outstanding job diverting them.

[nottblu]

Explain how republicans are preventing them from suceeding when Obam loaned them 500 million right before they failed. President Obama has truly done an outstanding job of "diverting" the truth from the American people, in fact it's the only outstanding thing he has done.

[luadda22]

Jim, did you just wake up??? What are the Republicans doing to prevent solar companies from succeeding and who started crap in Libya?

[vinca1234]

Honestly, this case is cut and dry... The theft of $528M in taxpayers' dollars is essentially an act of treason against the US and all of its citizens... Confiscate their passports, put them under house arrest and give the CEO, CFO and any other Executives who had decision making authority over the money, 60 days to return the money... If after 60 days the money is not return, then invoke the penalty for treason... execution! Anyone who would steal $528M from the US and all of its citizens deserves to be shot!!! This would send a powerful message to potential would-be thieves!!!

[nuttyworld]

Include in house arrest, etc. : Obama, Holder, Jarret, Browner, Emanuel, Poneman, and any other person involved in GIVING them taxpayer money when they knew it was going to fail.

[Socialization]

This is a huge scandal. I find it ironic that it will be Green Jobs that bring this Adminstartion down amount other things.

[nuttyworld]

This administration is blind to facts when it comes to "green jobs". If us taxpayers weren't out over $500M it would be a joke. This president's supporters can't deny they were given fair warning during the campaign. They didn't want to hear the truth, their determination to hire a "first" was so strong that truth didn't matter.

[nuttyworld]

Yes. If it was an oil company instead of green jobs hoax you would never hear the end of it from media.

[Socialization]

"Committee leaders said the administration may have violated the law when it restructured Solyndra's loan in February in such a way that private investors moved ahead of taxpayers for repayment in case of default. The economic stimulus law provides for taxpayers to be ahead of other creditors in the event of bankruptcy or default."

The only reason a secured party like the Taxpayers in this case would give up a priority position is because in February they must have been told they needed more money, obviously the politics of it would not allow Obama to give them more, so instead they take a subordinate position to allow other private investors a priority for new investment. The theory being that new money would keep the company afloat and could provide the stability to protect the 500 million loan.

Now here is the problem. Why was new money needed so soon after 500 million+ loan. Why was the companies financial troubles not reported back in February when Obama agreed to subordinate the loan. Why and how can the Obama Administration play loan officer independent of any oversight and why if they subordinated for new money, did it not come in?

Also if they did not subordinate for new private money, rather do it as a favor to help protect the private investors that include a large donor and bundler for Obama, then jail time is in order....

[nuttyworld]

"Why was new money needed so soon after 500 million+loan. Why was the company's financial troubles not reported back in February when Obama agreed to subordinate the loan."

The company's financial troubles were known to the Bush admin. as well as Obama admin. Obama admin. didn't care, they want "green" at all costs and too bad for us lowly taxpayers whom he thinks are too dumb to know.

[Socialization]

"Committee leaders said the administration may have violated the law when it restructured Solyndra's loan in February in such a way that private investors moved ahead of taxpayers for repayment in case of default. The economic stimulus law provides for taxpayers to be ahead of other creditors in the event of bankruptcy or default."

This is the big part of the scandal. Obama donor and major share holder get the loan restructured to insure he gets priority treatment.

I think it is time for the News Organizations to put a little muscle into this scandal and do some investigating.....

This is outrageous.... And Obama wants more money in taxes.....

[luadda22]

One more thing retm, George Kaiser's money came and is still comming from OIL.

[retm-w]

And the taxpayers are subsidizing it.

[retw-m]

One more thing.
What has that BS have to do with Obama giving Solyandra 528 million of taxpayers money to steal for his 2008 campaign contributions?
Libs have a diffuclt time staying focused on the subject at hand and love to make excuses for their crooked president. Like bring up someting totally irrelevant to the topic and thinking it lessens Obama's culpability in this scadal.
WRONG!!!