Solyndra's Loan Guarantee 'Was Rushed,' Treasury Audit Says
By Alison Vekshin
April 3, 2012
The U.S. Treasury Department was given one day to complete its review of the government’s $535 million loan guarantee to Solyndra LLC, the bankrupt solar-panel manufacturer, to accommodate an Energy Department press release, according to a Treasury audit.
‘Treasury’s consultative role was not sufficiently defined, the consultation that did occur was rushed and no documentation was retained as to how Treasury’s serious concerns with the loan were addressed,’ the audit said.
Solyndra, heralded by President Barack Obama as proof that “the promise of clean energy isn’t just an article of faith,” filed for bankruptcy in September, days before the FBI raided its headquarters in Fremont, California. The company received a $535 million loan guarantee under the Energy Department’s Loan Guarantee Program in September 2009 that was funded by the Treasury’s Federal Financing Bank, a government corporation created by Congress in 1973.