This article first appeared in the St. Louis Beacon, Oct. 26, 2011 - WASHINGTON -- Charging that the Solyndra LLC case "reeks of cronyism," U.S. Rep. Todd Akin has asked the Pentagon to explain how the now-bankrupt solar firm was short-listed for a potentially lucrative Navy project - in addition to its $535 million Energy Department loan guarantee that is now under investigation.
"Clearly, something fishy happened at the Energy Department," Akin, R-Wildwood, told the Beacon on Wednesday. "And it looks like something similar happened over at the Defense Department" - at least until the point at which the Navy cut off talks after Solyndra declared bankruptcy last month. He called for "full transparency and accountability in this decision-making process."
Akin, who chairs the House Armed Services seapower subcommittee, sent a letter to Defense Secretary Leon Panetta asking for a detailed explanation of the process in which troubled Solyndra was selected, among dozens of applicants, as one of three finalists for a "venture catalyst initiative" for alternative energy technologies.
In his letter, Akin asked whether there were "any political appointees involved in the decision-making process," how the Pentagon bars involvement of individuals with an interest in a competing vendor, and whether financial disclosures were required.
"If the White House was twisting arms at the Department of Energy for its campaign contributors, who is to say they did not do the same with the Department of Defense?" Akin said in a news release. He added: "This reeks of cronyism and the only solution is sunlight."
The Navy project is a sidelight to the main investigation of the Solyndra loan guarantee by the Republican leadership of the House Energy and Commerce Committee, including Rep. John Shimkus, R-Collinsville. They have released internal emails that they contend show that White House officials pressured the Energy Department to rush their decision so that Vice President Joe Biden could announce approval of the loan guarantee at a groundbreaking for the company's new factory in 2009.
Shimkus and other Republicans on the panel have alleged that the administration either missed or ignored a number of red flags that indicated that the firm had financial problems. The White House denies any wrongdoing related to the loan guarantee for Solyndra, which laid off 1,100 workers when it filed for bankruptcy in September.
After President Barack Obama said earlier this month that Solyndra "went through the regular review process, and people felt like this was a good bet" for a loan guarantee, Shimkus -- who chairs the House panel's Environment and the Economy Subcommittee -- was sharply critical of Obama. The congressman told the Fox Business Network that the president "needs to look at the timeline and ask [Energy Secretary Steven] Chu what actually went on. Because if he knew the information that we know, he would never make that statement."
Akin Questions Influence on Pentagon Decision-making
Earlier this month, news organizations reported that the Pentagon had tentatively chosen Solyndra to get about $400,000 in the funding of a $1 million pilot program, but the Navy ended the negotiations after the solar firm filed for bankruptcy on Sept. 6.
The Wall Street Journal reported that Solyndra "was promoted to the Navy by RockPort Capital, one of the firm's largest investors and board members, which has a seat on a Pentagon panel that helps the government find emerging technologies." A Pentagon spokesman said last week that Solyndra was chosen from among about 160 firms listed in the Defense Venture Catalyst Initiative, which highlights new technologies with potential military applications.
In the wake of that revelation, Rep. Joe Barton, R-Texas, a senior Republican member of the Energy and Commerce panel, told reporters that the Navy issue "is being looked at" as part of the committee's investigation into whether political connections played a role in Solyndra's good fortune in Washington. "The primary focus is on the Department of Energy, but it goes throughout the government," Barton told The Hill newspaper.
Akin, in his letter to Panetta, said he was "concerned by what seems to be an effort to invest in alternative energy technologies based on political expediency rather than rational cost-benefit analysis, demonstrated return on investment or financial viability."
In a phone interview, Akin told the Beacon that "Joe Barton has a lot of clout" on the Energy and Commerce panel's investigation, but added that the Armed Services Committee might also take a look at the Pentagon connection. Akin said there "are many unanswered questions" about the influence of Solyndra's backers on the Obama administration.
"How in the world did they get to the top three?" on the Navy list, Akin asked. "And was there any further involvement from the White House in helping fund a company that was a major bundler and contributor to the Obama campaign?"