9. CAMPAIGN 2012:
Seeking to deflect critics at debate, Romney echoes Hill GOP attacks on Solyndra
Published:
Former Massachusetts Gov. Mitt Romney sought to keep Solyndra in the headlines at last night's Republican primary debate in South Carolina, but he needn't have tried too hard, with members of Congress expressing new outrage over potential bonus payouts by the company.
In addition, new reports surfaced last night that the defunct solar tube manufacturer, which is in the midst of bankruptcy proceedings, has begun destroying valuable assets at its Fremont, Calif., plant.
Romney turned to Solyndra during last night's debate to help deflect an attack by former House Speaker Newt Gingrich (Ga.) over the former governor's claims of creating jobs during his tenure as former executive at Bain Capital. In response, Romney tried to steer the conversation toward President Obama's claims about job creation.
"He's been practicing crony capitalism," Romney said. "And if you want to get America going again you've got to stop the spread of crony capitalism. He gives General Motors to the [United Auto Workers]. He takes $500 million and sticks it into Solyndra. ... You go across the country with regards to energy, because he has to bow to the most extreme members of the environmental movement.
"He turns down the Keystone pipeline, which would bring energy and jobs to America. This president is the biggest impediment to job growth in this country, and we have to replace Barack Obama to get America working again."
Since Solyndra went bankrupt after being selected for a half-billion-dollar Department of Energy loan guarantee, Republicans have sought to make the company the poster child for Obama's failed job creation efforts.
Capitol Hill Republicans, who for the past 11 months have been investigating the Solyndra deal, have also been closely monitoring the ongoing bankruptcy proceedings that have been unfolding in federal court.
Last week, the company asked for the court's permission to award bonus payments of up to $50,000 to several employees. The bonuses, according to a motion filed by the company, are necessary to avoid a loss of personnel that may "seriously jeopardize the ongoing sales efforts and, should it continue, require the engagement of experienced consultants at a much higher cost than maintaining the existing personnel."
The request has outraged Republicans on Capitol Hill. Rep. Morgan Griffith (R-Va.), a member of the Energy and Commerce subcommittee that is looking into the Solyndra loan, sent a letter to the White House yesterday asking Obama to direct the Department of Justice officially oppose the bonus request.
"Employee retention has little actual bearing on the amount potentially recoverable by Solyndra's creditors, chief among them American taxpayers," Griffith wrote in a letter signed by 53 of his House Republican colleagues. "No matter how we arrived at this moment and setting aside political disagreements concerning Solyndra, the simple fact is that American taxpayers should not be footing the bill for bonuses for employees of Solyndra."
But congressional interest in Solyndra's bankruptcy proceedings may not be limited to the company's bonus request.
Last night, a local CBS news station in California aired a report that included video from last week of Solyndra employees at the company's Fremont facility tossing pallets of valuable high-grade glass tubes into the garbage.
Solyndra paid some $2 million for the specialized glass tubes and still owes money to the company that originally made them.
The report noted court documents that show that the company received permission from the bankruptcy trustee to "abandon" the valuable glass because it could not be sold at auction. It was determined that the cost of storing the glass exceeded its value.