Obama Pressured Solyndra to Delay Layoffs Until After Midterm Election

by Stephan Tawney on November 15, 2011

The Washington Post reports this morning that the Obama Administration pressured failed solar company Solyndra, financially backed by both taxpayers and a top Obama donor, to delay layoffs until after the 2010 midterm election.

The Obama administration urged officers of the struggling solar company Solyndra to postpone announcing planned layoffs until after the November 2010 midterm elections, newly released e-mails show. …

Solyndra’s chief executive warned the Energy Department on Oct. 25, 2010, that he intended to announce worker layoffs Oct. 28. He said he was spurred by numerous calls from reporters and potential investors about rumors the firm was in financial trouble and was planning to lay off workers and close one of its two plants.

But in an Oct. 30, 2010, e-mail, advisers to Solyndra’s primary investor, Argonaut Equity, explain that the Energy Department had strongly urged the company to put off the layoff announcement until Nov. 3. The midterm elections were held Nov. 2, and led to Republicans taking control of the U.S. House of Representatives.

DOE continues to be cooperative and have indicated that they will fund the November draw on our loan (app. $40 million) but have not committed to December yet,” a Solyndra investor adviser wrote Oct. 30. “They did push very hard for us to hold our announcement of the consolidation to employees and vendors to Nov. 3rd – oddly they didn’t give a reason for that date.”

Yeah, how odd. Perhaps because it’s the first day after the midterm elections, which were held on November 2nd.

Keeping in mind Solyndra was a publicly-traded corporation responsible to investors. So the administration was pressuring a publicly-traded company to withhold vital information from its investors…for political gain.

And on top of that, the administration appears to have bribed the company with $40 million in taxpayer-backed loans to push off the pending announcement. Again, for the political gain of the Democratic Party.

Also, the White House knew:

On Oct. 25, 2010, Solyndra chief executive Brian Harrison e-mailed the energy department’s loan staff to explain that Solyndra “has received some press inquiries about rumors of problems (one of them with quite accurate information) and we have received in bound calls from potential investors. Both of these data points indicate the story is starting to leak outside Solyndra.”

Harrison went on to state that he would “like to go forward with the internal communication [to employees regarding layoffs] on Thursday, October 28.”

Harrison’s e-mail was forwarded to program director, Jonathan Silver, who then alerted White House climate change czar Carol Browner and Vice President Biden’s point person on stimulus, Ron Klain. Browner asked for more information about the announcement, and Chu’s chief of staff explained he had left a voicemail message on her cellphone.

Culture of corruption.



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