Was Solyndra an Impeachable Offense?

September 16, 2011 @

The Obama administration’s Solyndra scandal goes beyond pressuring career federal employees to approve a $535 million loan guarantee to a company largely held by an Obama crony. When the government restructured the loan in February, officials appear to have broken the law by allowing the company’s private investors to recoup their funds before U.S. taxpayers get their money back.

Much of the media and political backlash has focused on the Obama administration’s lobbying for the loan’s swift approval in 2009. George Kaiser bundled between $50,000-$100,000 in campaign contributions for Obama in 2008, and the George Kaiser Family Foundation controls 35.7 percent of Solyndra Inc. Despite analysts’ significant misgivings about the company’s viability, the well-connected company received approval on the administration’s expedited schedule.

When Solyndra appeared ready to falter early this year, in need of $75 million in new investments, the Obama administration seems to have gone beyond the constraints of the law.

On February 23, the government restructured Solyndra’s loan. To lure private entrepreneurs to the troubled company, the Department of Energy (DOE) included a proviso that, in the event Solyndra declared bankruptcy, those who invested the $75 million would be paid back before U.S. taxpayers. Under the scheme only $150 million of government funds would be considered senior debt, a category of IOUs that must be paid back before other stakeholders are reimbursed.

That means those who provided the $75 million will recover their funds before taxpayers recoup $385 million.

Read More at Floyd Reports By Ben Johnson, The White House Watch

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