SOLYNDRA – PROBABLE FRAUD ON MORE THAN ONE LEVEL

As promised, I will comment on the SOLYNDRA SCANDAL, yes scandal. In all likelihood, you've seen and heard the news stories, most of which are ignoring the obvious and some are simply shilling to obviate any claims of scandal to cover for the Obama administration.
Huffington Post AOL News, the MSNBC if the internet, incredibly bills the situation as “FULL OF SOUND AND FURY SIGNIFYING NOTHING.” They declare that $535 million out of a total of $39 Billion committed for so-called “green energy” is insignificant. They must be kidding! But they're not!This is a part of the media I wrote of in the analysis of Obama's reelection dynamics that will do anything to get him reelected. AOL paid $310M for this junk journalism! $535 million is a huge amount of money and only fools would minimize the magnitude and importance of it.

Chicago Tribune's John Kass says "it smells of Chicago City Hall with more zeros." He gets it right, but doesn't get the whole essence of it. The Washington Post, surprisingly, sees it as a “big deal” (at least refutes claims that it isn't) and even tries to defuse the claim that it is all China's fault. It surely isn't.

CEO Brian Harrison and others declaring they'll take the 5th makes writing this piece easier. Why? It makes more certain the assumption that they are guilty of fraud and/or would have to expose members of the Obama administration as complicit. They are, without doubt, guilty of something they don't want exposed.

The economics of the Solyndra deal are not mysterious. For a company of this size to be “burning capital” at a rate of more than $300 million per year with minimal sales and annual bottom line losses of nearly $200 million, is not the established company some touted it to be. These facts also make incredible, in fact invalid, their claims that Chinese competition caused their demise. From information now available it is almost certain they bet on the wrong technology, based on improper projections of raw material costs (silicon) as well as total costs of production. Solyndra was simply non-competitive. But, they sold a “bill of goods” to ignorant and/or dishonest government representatives from DOE, Obama's office and others. A big bill of deception! Fraud!

The claims that Chinese competitiveness cratered Solyndra just don't wash. No way. If Solyndra was non-competitive in 2011, they should have been projected as non-competitive in 2009. The only way this would not be known in 2009 would be to conceal information or give faulty projections (costs, sales). The excuse of unexpected drop in silicon prices isn't justification for the misstated economics. It is highly likely, Solyndra got favorable treatment from the Obama administration. Fraud!

Whatever the state of competitiveness, there had to be operating data, income statements, balance sheets, market analyses, sales projections and more that revealed the real financial condition of this company. And, what about audit reports?? It is highly unlikely, even impossible, that a credible audit report would have declared Solyndra a viable going concern. A negative “going concern opinion” would have negated any private equity deal.... as it should a government deal!
IGNORING such a negative "going concern opinion" strongly suggests factors other than economic analysis driving the deal. I suggest the “politics of Obama's green energy folly” at play. FRAUD! Hence, the officers taking the 5th amendment protection.

There can be little doubt of this. However, will it be exposed? Will truth be told? Will the guilty be prosecuted? Will the Obama administration be exposed? If the corrupt Holder/Obama Justice Department drives the case, NO. If Congress can get a grasp of the situation, MAYBE. This is a case for an independent council.
However, with the people running government today, INDEPENDENT COUNCIL IS AN OXYMORON. We deserve better. Hope I am wrong, but probably not.

Comments

  1. I spotted that "Going Concern" caution some time ago and that would have kept my money safely in my pocket. Unfortunately for us taxpayers, our lovely government had a pocketful of burning coin. Loose millions for campaign donations is a powerful force for leftists.

    I'll just repeat my thoughts from another place that the ratio of this $535 million to the total available of $850 billion(?) or so in the original stimulus shows that there are likely about 1600 Solyndras out there scarfing down our money. And it doesn't take much smarts to figure out that out of that total it is likely that some significant percentage will find it's way into a Democrat campaign account somewhere.

    I'm with you Joe, "$535 million out of a total of $39 Billion" Green project money, is insignificant only to a Liberal Marxist!

    ReplyDelete
  2. Here is a link to a story about the "Going Concern Caution" delivered about March/April 2010 by the auditors Price Waterhouse prepping the company for the IPO. The IPO supposedly was to raise another $300 Million which may or may not have solved their money problems.

    http://www.bizjournals.com/sanfrancisco/stories/2010/03/29/daily85.html

    A question was asked in the article, if after about $900 Million in cash, which included the $535 Million from the Fed, would another $300 Million fix their cash problem.

    This time frame was shortly after a spokesman for the Department of Energy was quoted as saying that only $25 Million had been disbursed at that time.

    So you're on the right track Joe. Take note of the time frames in here and ask the right questions. Why, after a "Going Concern Caution" was delivered by their auditors, was $510 Million disbursed to Solyndra?

    This is illogical, foolish, and foolhardy. But then we don't expect much from these Liberals, do we?

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  3. Randy, thanks for this input. I have not yet researched all information and really don't intend to take time to do all of it. Your input is most appreciated, and is, frankly, the way I enjoy writing as I have said before. A few friends are good enough to help me in published work and in speeches and I am glad to have one more! Got a note from Bruce today. Good memories...most enjoyed at this time of life.
    I rewrote this piece today for publication outside. Will send copy by e-mail later.

    ReplyDelete
  4. Randy, a "blog administrator" has deleted some comments. I didn't know he/she existed and don't remember which ones were deleted. Sorry, I'm learning here. I not only like your comments, they are very contributory to the purpose of trying to inform people who may not be informed otherwise or may be given the wrong information. When I write for the paper or here, I try my best to give data and real information along with opinion that I believe can be substantiated if someone wants to validate it. I see yours the same way. Thanks.
    BTW, in time I will eliminate some older stuff, but not right now.

    ReplyDelete

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