Republicans question loan to now-defunct Solyndra

The republicans are demanding explanation as to why the government granted additional millions of dollars even after the company has declared that it could collapse.

Loan guarantee to the ailing firm
In February this year, the administration has helped California based Solyndra in refinancing its federal loan.

Both the Republican and the Democrat members of the House Energy and Commerce Investigative sub-committee have criticized the decision of the government.

The Republican lawmakers have released excerpts from the e-mails of the administration which suggests that the White House officials pressurized the Office of Management and Budget (OMB) to quickly finish their review of the loan because of political reasons.

The chairman of the subcommittee, Rep. Henry A. Waxman, questioned the decision of investing more dollars when the energy department was aware of the critical financial situation of the company.

“That was not an easy decision, and we need to ask if the right choice was made. We need to know how this happened, who should be held accountable and how to avoid future risk to tax payers dollars,” said Waxman.

He also disclosed his intention to find out the persons responsible for putting this money at risk.

Government acted in undue haste
The Republican lawmakers have released excerpts from the e-mails of the administration which suggests that the White House officials pressurized the Office of Management and Budget (OMB) to quickly finish their review of the loan because of political reasons.

The emails revealed that officials of the OMB were under time pressure to approve the loan to the company so that Vice President Joe Biden could announce the approval during a groundbreaking ceremony for a factory.

The White House wanted to showcase it as the progress on job-creation front.

The administration was trying to use the company as an example of the stimulus bill that created “Green Jobs”.

Solyndra has winded up its factory and filed for bankruptcy protection. Its headquarter was raided by the FBI officials, most likely in connection with this loan.