Obama Admin Gave $98.5 Million to Alternative Energy Company Now Going Belly-Up
The Obama campaign unveiled a new “Betting on America” slogan today, but there is increasing evidence that all his administration has done is bet on cronyism.
The Obama administration made a disastrous, reckless, and failed bet on the green energy company Solyndra.
And now, according to a report by the Washington Times, a geothermal energy company to whom the Obama administration gave a $98.5 million loan guarantee is in serious financial trouble and the “company’s auditors have questioned whether it can stay in business.”
Nevada Geothermal Power (NGP) “has substantial debts and does not generate enough cash from its current operations after debt-service costs,” according to an internal audit seen by the Times.
“The company’s ability to continue as a going concern is dependent on its available cash and its ability to continue to raise funds to support corporate operations and the development of other properties,” NGP auditors said, according to the Times.
Sen. Harry Reid (D-NV) and Energy Secretary Steven Chu, who is also largely responsible for the Solyndra disaster, lobbied for the loan guarantee, which Reid once said would “put Nevadans to work.” However, a recent report by the House Oversight Committee and Government Reform Committee found the loan “did not help create a single job.”
Rep. Jim Jordan, chairman of the House Republican Study Committee, told the Times that the administration guaranteed the loan even though NPG’s rating rendered it nearly on par with “junk status” and, at best, was speculative.
This loan guarantee was done with taxpayer money and reeks of cronyism, because the company’s CEO, Brian Fairbank, employs two former Harry Reid staffers, according to the Times.
These are the types of reckless bets the Obama administration has made with taxpayer dollars and will make in a second term, which, to say the least, threatens the country’s financial future, as so many of these bets have come up snake eyes.