Another example of the poor job government does in picking winners and losers is emerging. Solyndra, a solar panel company, was the first to go under, taking with it half a billion in taxpayer money.
Now we have the specter of another “green jobs company” that received guaranteed government loans doing the same. But this one seems to have consumed over twice the amount of money that Solyndra did.
SunPower is its name and right now, bankruptcy seems to be its game.
How well did the government, via the Department of Energy, do this time?
The Energy Department says on its website that the $1.2 billion loan to help build the California Valley Solar Ranch in San Luis Obispo County, a project that will help create 15 permanent jobs, which adds up to the equivalent of $80 million in taxpayer money for each job.
The DoE also claims:
“This project underwent many months of rigorous technical, financial and legal due diligence by career employees in the DOE loan program,” Energy spokesman Damien LaVera said in a statement to FoxNews.com. “It was approved for one reason only: because it meets all the requirements of the program – helping America win the clean energy race and create entire new industries for American workers.”
Did it indeed undergo such “rigorous” analysis? Well if so, then they should have known all about this:
But SunPower posted $150 million in losses during the first half of this year and its debt is nearly 80 percent higher than the market value of all its outstanding shares. The company is also facing class action lawsuits for misstating its earnings.
It truly makes you wonder how bad a company would have to be not to get a DoE loan (obviously it would have to be a “clean energy” company, because those are the “winners” this administration has chosen to fund).
Oh, and then there’s this:
The company is also politically connected. Rep. George Miller’s son is SunPower’s top lobbyist. The elder Miller, a powerful California Democrat, toured the plant last October with Interior Secretary Ken Salazar, and reportedly said, "We’ve worked hard to make renewable energy a priority because it represents America’s future economic growth. Today, businesses like SunPower are moving forward, hiring 200 people for good clean energy jobs in the Easy Bay."
It’s not clear what role, if any, either of them played in securing the loan. Miller’s office did not respond to a request for comment.
An Energy Department official denied crony capitalism was a factor in the loan guarantee.
“The notion that political connections played any role in this application is simply false,” the official said. “This application was approved based on the exhaustive due diligence of the career professionals in the loan program, and nothing else.”
Of course. Because there was such a sound financial basis to approve such a loan, wasn’t there?
And politicians wonder why people are more and more cynical and less trusting of our government all the time?