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Are right with us now Republican congressman Joseph Barton of Texas.
With on the house energy and commerce committee congressman welcome to the show great to have you here this story is just hop and all over the place.
I one -- -- you left filing.
From march 16 the 2010.
It's about cylinder act and here's what it says it's so critical it was filed by price Waterhouse Coopers.
It says illiterate the company has suffered recurring losses from operations.
Negative cash flow since inception and -- -- net stockholders deficit deficit among other factors.
Raise substantial doubt about its ability to continue.
As a going concern.
And yet just months earlier the president had this to say about the company.
The true engine of economic growth will always be.
Companies like -- companies like slim -- are leading the way toward a brighter more prosperous future.
Congressman what do you make of this.
Well the energy policy act of 2000.
Put in place a go to guarantee loan program to help alternative energy which solar power is one.
-- is -- company had a different type of solar technology.
That they thought.
Would be more appropriate in the market place.
And the Obama administration when they came in looked at some opinion applications of which this was one.
And and shows them to give them a half a billion dollars a little over half a billion dollars.
And the problem is that the of the -- concept.
It didn't work as well in the marketplace because silicon prices went down.
The economy flattened down.
And and basically.
Obama picked them is a poster child.
Where it's gonna be the wrong kind of poster child wells they just declared bankruptcy.
Absolutely right and you know here from Texas you know a thing or two about energy.
What do you make of the process that results in a company.
They can't even make money can't make a profit can't turn a profit goes out of business and give them half a billion dollars how well of that work.
I think the Obama administration was looking for a Green energy success story.
And his bet on the wrong horse.
Betting on Iran -- -- tell you something about.
How much government should be involved in picking winners and industries that are emerging.
Well there's I mean I wanna be full disclosure I supported this part of the energy policy act it set up the loan guarantee program.
And alternative energy is going to be a Dicey proposition but having said that.
There were clear signals.
That this particular company wasn't what it was was cracked that to be and had the president -- a little bit more due diligence and his secretary of energy.
We wouldn't have this black the company that He visited.
We bet that the obamas have.
The Obama administration is allocated about eight billion dollars in this particular loan guaranty and has another ten billion dollars -- happy ending.
We need we need to be prudent with the taxpayer dollars.
I -- and then I'll congressman it with these loan guarantees.
You need to throw this whole program out the window if this doesn't group.
The government can't pick winners what does.
Well it it I wouldn't throw the entire program but I do you take your basic point that we ought to -- -- back.
And and we this particular program they need about 750.
Billion dollars the government funded two thirds of that and that's wrong.
You know I thought it was interest saying.
So lender act before it.
File bankruptcy just two months before file bankruptcy.
He was in front of congress telling the energy committee that their financial situation was good okay all right we're continuing.
And yet look what happened.
I mean are we a situation where is this are we talking about you know problems that are going to be.
Breaking the law here I mean this is going to be the kind of thing that it puts a real black eye on the Obama and administration.
-- -- You can support alternative energy.
With with that going overboard and and and -- regarding due diligence.
A smaller alone a smaller proportion of the total funding.
And but at some point in the marketplace is the marketplace and that's that's what's lender tells us is that.
They flag couldn't compete in the government that too much money into -- -- -- and and now they're the markets.
Forcing bankruptcy because they don't have the cash flow to support the long repayment well.
It is to be fair I should say there were a whole lot of venture capitalists that were very interested in someone direct and even a very prominent Obama fund raiser.
Was also invested in this company.
Do you find it problematic that the executives with the lender we're at the White House may be twenty times before they got the loan guarantees.
George Kaiser a fund raiser for Obama.
Also when they announced the front door at the White House what are we to make about.
I think that's a fair.
Have been you've heard for question before the subcommittee.
This week in the one and I think it's going to be scheduled next week.
These loan guarantee program should be on the up in they really should not be influenced by.
By politics coming out of the White House.
All right I wanna show folks the timeline of what happened with this company at this solar panel maker with a very exciting technology.
It was awarded the federal dollars in September 09 to six months later they're auditors filed a warning.
About their finances.
Then here comes Obama visiting them just a couple of months later saying what a great company they are.
And in September just last week really they file for bankruptcy.
And the FBI raids there headquarters.
I mean -- -- is not the most ridiculous.
I I'm just shocked.
And I wonder how many other so lenders there are out there that we just -- discover.
We need to look into that again they've allocated about eight billion dollars.
And have another ten billion that's pending.
That's eighteen billion dollars and even in Washington DC that's real money and needs to be accounted for here -- you've you've asked a very fair.
Question and -- -- that's real money at congressman now look forward to talking to you again I know you're sitting in on that.
Hearing tomorrow so we will be watching that very closely Paterson -- thanks for your time today.
Always a --