As the Department of Energy seized the last of Fisker Automotive’s reserves in lieu of an unknown amount that it was due to repay this week, what’s left of the lame electric automaker clings to the slim hope it can survive.
While CEO Tony Posawatz and his team may need an intervention, a hearing before the House Oversight and Government Reform Committee yesterday revealed that DOE and committee Democrats (as well as those in the Obama administration) are hopelessly stuck in an alternate universe, where losing millions of taxpayer dollars is considered a good record. Republicans had called officials from the company – including founder Henrik Fisker, as well as administrators of DOE’s loan program – to explain the logic that went into granting $529 million to a fledgling, unproven car company that targets an ultra-rich clientele.
The next time a green energy company announces it is intentionally slowing down for a transition phase, or that a technology breakthrough is just around the corner, or that all that’s needed for future success is just a little more taxpayer “investment” – don’t believe it. It's likely a lie.
Last week NLPC reported that an international law firm, whose employees provided significant campaign support for President Obama, was paid $1.8 million from the stimulus to review and conduct “due diligence” for the Department of Energy’s suspended loan to Fisker Automotive, an electric vehicle start-up company. Fisker sent 65 workers to the unemployment lines.
Debevoise and Plimpton, which employs top Obama bundler and fundraiser David Rivkin, wasn’t the only largely Democratic law firm to reap such rewards. At least four other major law practices also analyzed DOE’s loan programs and its grantees – three of which gave large sums of money to the campaigns of President Obama and fellow Democrats.
How did a start-up electric car company that raised more than $1 billion suddenly fail to meet government-lending standards, to the point where it can no longer draw on an awarded Department of Energy loan and has therefore halted renovation work on a Delaware plant?
Now Wall Street analysts are wondering the same thing, and the beleaguered lenders at the Department of Energy must be deeply concerned about what they will do next. As Forbesreported yesterday, the close ties between the two speculative companies could produce “two Solyndras for the price of one."
The hurry to take advantage of funds appropriated through the Recovery Act for “shovel ready” projects impelled the federal agencies – especially the Department of Energy – to hastily allocate the money, and as a result taxpayer money flowed to projects marred by fraud, corruption, poor workmanship, failing companies, and crony corporate socialism.
And now DOE Inspector General Gregory Friedman has discovered the rush to distribute stimulus money may have compromised national security. In an audit report of the department’s management of the Smart Grid Investment Grant Program, which received $3.5 billion to modernize and improve the reliability of the U.S. power grid, the IG found that grant recipients’ plans to prevent “malicious cyber attacks” were often inadequate.
Two weeks ago Texas Gov. Rick Perry made what many formerly mainstream media pundits thought was his crowning debate gaffe in Michigan, when he could not remember the third of three cabinet departments (after Education and Commerce) he would eliminate if he were elected president.
The one he momentarily forgot, the Department of Energy, should have been the first one on his lips.
Sen. Christopher Dodd (D-CT) received up to six sweetheart home loans from Countrywide Financial, even though he has only publicly admitted to accepting two special deals, The Wall Street Journal reported on Friday.
The revelations were brought to light by the House Committee on Oversight and Government Reform, raising questions about a previous Senate ethics committee investigation into Dodd’s dealings with Countrywide that just disclosed information about two of the loans.
Rep. Jeff Flake (R-AZ) will likely bring another resolution before the House of Representatives next week calling on the House Ethics Committee to release more details of the investigation into lawmakers linked to the PMA Group pay-to-play controversy, his office told the NLPC Tuesday.
Rep. Flake has been the lone member of Congress pushing for more information on the investigation since late February, when the Ethics Committee released a brief, 5-page report on its probe of the politicians who obtained earmarks for clients of the now-defunct PMA Group lobbying firm. The D.C.-based PMA shuttered its offices last year after the FBI began investigating allegations that the lobbying group exchanged campaign contributions for earmarks.
The Association of Community Organizations for Reform Now, or ACORN, deservedly has received enormous amounts of bad press over the past couple years. The New Orleans-based nonprofit network of radical activists, with hundreds of affiliates in more than 40 states, has been at the center of investigations into voter registration fraud, unauthorized use of taxpayer funds for lobbying and other forms of partisan politics, phony tax filings, and an embezzlement scandal that cost its founder and chief organizer his job a little over a year ago.