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Bankrupt green energy firm touted by President Obama faces investigation over $535M federal loans
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-- as we reported last hour there are new accusations of political cronyism and corruption today swirling around the high profile.
Expensive bankruptcy of a California Green energy company.
And these could lead to some political and possibly legal headaches for the administration.
Federal agents raided the offices of -- -- -- last week just days after that company filed for Chapter Eleven bankruptcy.
The company went broke despite receiving around 535.
Million dollars in federal loans that is your money.
Possibly down the -- Fox News legal analyst Peter Johnson junior joins me now with some perspective on this so the government gave this company about a half a billion dollars direct loans.
Over the objections of other people within the government is my understanding who were saying.
Hold on it doesn't look that good.
And -- and when the president spoke there there have been new warning by price Waterhouse Coopers the accountant that that company was about to go.
Down.
And so the issue becomes is is it incompetence.
Or is it corruption.
Some Republicans appointed connections between a major investor.
Who is attended nineteen White House meetings.
Who has -- connection.
To that company is as a guy who bundled donations for President Obama are -- -- -- donors together.
And made donations to the white man named George Kaiser there have been no charges leveled against him but Republicans been pointing out.
And asking what effect is the questions and had a stake -- -- -- correct and in in terms -- repayment of the loan and an investment.
So what we have now -- inspector general we have the FBI.
We have the house of congress.
Looking at what happened and why.
Did this incredible amount of money go to a company.
That is now belly up they had so any indications that it was a week company to Begin with so is it a matter of putting ideology.
Ahead of competence and actually vetting a company.
Well that's the question because now according to the reports the FBI raided that the company because they're trying to figure out.
-- -- whether they misrepresented the facts when they secured those federal loan guarantees they wanted to find out whether -- relied.
To the feds about its status in trying to get those -- But the question is if the company didn't -- if they opened other books and showed the government how how pour.
Things were at the company then there's a question of incompetence on our government's.
Our incompetence our government that's why there are are elections if there's criminal wrongdoing.
Then a grand jury has its place and the FBI has its place and the congress has its place in seeing what happened.
Was there a favor exchanged.
Was it tit for tat.
With someone get there's nothing special about so far as they had no evidence that I -- He has no evidence at all.
But in this staggering amount of money when it appears that there are so many signals about a company it was financially.
Weak.
In an industry.
In which their product was untested at that point they were providing a new cylinder -- is shaped solar panel.
That apparently went out the window based on -- Chinese cutting their prices with regard to a similar product.
Why was that done.
Was there -- greater emphasis on pushing the ideology of Green jobs.
Was there's some corruption.
Was there -- this was the absolute rank incompetence.
In terms of putting this money.
Ford and so the larger question is should there be these kind of relationships.
Between government.
And private industry and the other thing may I figure where this.
Is that the government the federal government representatives.
Were sitting in board meeting out of this company once they knew that there were serious problems.
-- -- -- What they knew when they knew it why the loan is extended the government for its point efforts -- now saying.
You win some you lose some of these investments we tried to win some with the stimulus money.
Doesn't always work out in periodically the truth is that these government investments -- really.
Working out this really is money -- and certainly didn't and you can bet no matter what the big house says now it's not happy to have president -- all on tape going through that facility.
Peter Johnson junior Tennessee and -- good to see it to my friend.
