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Green Corruption: Department of Energy “Junk Loans” and Cronyism, Part One

While the media was “tripping out” over Energy Secretary Chu giving himself “an A grade on controlling the cost of gasoline at the pump” during his testimony before a House panel last month, they missed the real scandal!

As insulting as that seems (especially since gas prices have significantly increased under Chu’s watch), Gene Koprowski of The Daily Caller unleashed the most outrageous part of the House Oversight’s investigation –– "Obama energy officials funded solar firms despite ‘junk bond’ ratings from S&P and Fitch." Koprowski detailed the Department of Energy's (DOE) lack of caution in backing hundreds of millions of dollars in loans for "tainted solar power projects." Also documented are "other dramatic abuses at the green energy firms," the most egregious being those firms which, received DOE funding, went bankrupt, "but not before paying their executives bonuses."

In fact, the report released last month by the Committee on Oversight and Government Reform (led by CA Representative, Darrell Issa) "painted a startling picture of mismanagement at the Department of Energy." The most damaging is that of the 27 loan guarantees under the 1705 program, of which the DOE doled out in excess of $16 billion, “23 of the loans were rated “Junk grade” due to their poor credit quality, while the other four were rated BBB, which is at the lowest end of the 'investment' grade of categories.” According to Issa's Team, the DOE's 1705 loan portfolio overall average was BB-." Now, I'm no financial guru, but I wouldn't want that grade on my report card.

So why did the DOE back so many high-risk investments, particularly at a time when we are drowning in a tsunami of debt?

In a gripping line of questioning, Ohio Representative Jim Jordan confronted this issue head on during that same hearing where he pressed Secretary Chu on nine of the firms that received loans, revealing their political connections. Chu countered that the loans were based on merit. Yet Jordan was perplexed, “so if you weren’t helping your buddies, and you were basing your decisions on the merits of the loan, how do you explain the fact that 23 of 27 recipients of the loan guarantees were rated as junk status investments?” Jordan concluded, “If it wasn’t your political buddies, it had to be incompetence.”

Finally, the probe into the DOE and how they "pick winners and losers" for "green ventures" has gone in the right direction, however, Congressman Jordan overlooked the fact that it’s not just nine –– it’s the majority of the 27 projects recorded by Issa's Team.

Political buddies indeed –– 21 energy firms are behind the 27 projects found in the House Oversight investigation, and 18 of them are politically connected to President Obama (15 alone) and the Democratic Party, that’s over 85%! 13 were bundlers, donors, and supporters for Obama's 2008 campaign, and two are members of the president's Job Council, while three are allied to Senator Harry Reid –– all with ample other Democrat links in the mix.

Nevertheless, before Congress caught on, Peter Schweizer’s New York Times bestseller, Throw Them All Out –– released last November and featured on 60 Minutes, exposing the "permanent political class" and the insidious practice of "Congressional insider trading" perpetrated from both sides of the political isle –– devotes an entire chapter to alternative-energy, "Spreading the Wealth... to Billionaires!" Whereas, others players in this clean-energy scheme are uncovered by Schweizer, this chapter digs into a few of the major DOE programs operating under the stimulus, including the tens of billions of dollars that was dished out through the 1705 Loan Guarantee Program.

That's right –– millionaires and billionaires got their fare share of green funds! Interesting enough, Schweizer's book divulged over half of the energy firms listed in the Houses Oversight's investigation, and what's astounding is that once again, the majority, 80% of the DOE loans, grants and special tax credits, reviewed by Schweizer, “went to companies with Obama-campaign connections or large donors to the Democratic Party," and that was as of September 2011!

As the president doubles down on clean energy –– all the way from his 2012 State of the Union address, to his 2013 budget, and off to "algae pushing" –– many of the “green lottery winners” are bundling and campaigning for Obama again, including Secretary Chu, albeit with Hatch Act restrictions.  And you can bet your bottom dollar that these large donors are banking on President Obama’s 2012 reelection victory, counting on more government subsidies.

Within the pages of the House Oversight report, are disturbing charges –– backed up with corroboration –– that range from poor to disastrous management, to bias and favoritism, as well as wasteful spending, in some cases a series of DOE violations, and how the DOE touted “misleading job creation statistics."

Even so, the DOE has come under fire by other federal watchdog agencies, especially since their loan programs have significantly expanded under the American Recovery and Reinvestment Act of 2009, which was meant to stimulate the economy and create jobs. But now it has become clear that it's stimulating the pockets and securing jobs for those that have significant ties to the Democratic Party and the White House –– “green cronies.”

First published on Blogcritics Magazine in politics –– this scandal is huge...

House Oversight Investigation reveals that over 85% of the 27, including the 23 “Junk grade” DOE loans have "meaningful" political connections to President Obama and the Democratic Party.

Views: 1417

Tags: Corruption, Cronyism, DOE, Democratics, Energy, Government, Green, Obama, Oversight

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Comment by Christine Lakatos on May 27, 2012 at 8:29pm

wow, didn't realize I had so many comments, guys I forgot the follow buttone.But I did create a new blog called Green Corruption, of which I have posted three more posts. And tons more to follow until the election –– three years of research worth. Stay tune, as I name names! Obama's Green Corruption is HUGE! 

Comment by Country Girl on April 30, 2012 at 8:55pm

  

Great article Christine.  I just started doing some research this morning on a project in the county where I live and found that it was funded by the DOE Loan Guarantee Program, as I suspected.  It's a solar ranch in a very remote part of the county.  I questioned just how feasible it would be to get power from there to the consumer and whether it would be a reliable source.  Now that I know what it took to qualify for a loan those questions have been answered.  Thanks for the talking points!

CG

           

    

Comment by Bob HIGGINBOTHAM on April 29, 2012 at 5:44pm

Chu probably is a expert in the narrow band for which he received his nobel prize. Like almost all PHDs, beyond his area of expertise he is completely out of his element and, at best is a neophyte and has no comprehension of the real world. If that is not the case then he like his boss is completely corrupt and belongs in jail.

Comment by John L. Armstrong on April 29, 2012 at 10:02am

This d!p$h!t clown won a nobel prize in physics...tells you everything you need to know about the nobel prize.

Comment by Marc Jeric on April 29, 2012 at 1:27am

The communist-eco-nazi push for green energy should be encouraged. Why? Because it does not exist: it is 10 times more expensive, it is unreliable, and it is environmentally destructive. T^his push reminds me of those medieval princes who were paying theit alchemists for many centuries trying to transform lead into gold.

Comment by Roger Guiles on April 29, 2012 at 1:24am

Check out your local area at recovery.com and see where your money went. Here is a little ditty from my neck of the woods (or sand); Tonapah Az received 331,936,274 and the only place that grew was Mesquite solar1 buying solar panels from China, but, then again the company did open a plant in Malaysia and hired 209 Malaysians.

Feel the pain?

Comment by Mike Wilson on April 28, 2012 at 11:20pm

It seems to me if this author has the evidence, can cite specific infractions of law and files a complaint, a legal investigation must be initiated.  Whether or not the investigation proves illegality, the claimant would be informed of the investigative results.  Sheriff Arpaio has done similar investigations with resultant evidence necessitating a higher legal inquiry; but, to date, with limited recourse to be heard by any higher court.  If the evidence is there and can be verified, why not file a complaint and let the world know of its progress?

Comment by Jack Blue 42 on April 28, 2012 at 10:35pm

What troubles me almost as much as the Democratic give-away to their rich friends, is the terribly obvious INACTION on the part of Republican who fail to critize or publicize the give-away, and who fail to utilize existing laws to put a stop to the continued robbery of the American people.  I therefore conclude that the majority of the Republicans are in FAVOR of the continued corruption which was already up-and-running while George Bush was President.  The Republicans supported the "rescue" of banks and other inept institutions that received Billions of our tax dollars, but that should have been allowed to sink out of economic sight!!!  The Republican and Democratic parties make a show of opposing one another while they secretly plan their next move to continue the theft of our dollars, our freedom, and our lives!!!

Comment by Diane Lee on April 28, 2012 at 9:56pm

Gotta get rid of this disastrous hyper-spending idiotic administration and its minions of corrupt aholes

Comment by Leon Mcgraw on April 28, 2012 at 7:27pm

Really good article but this kind of cronyism just continues.


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