Solyndra CEO Resigns
Recently bankrupted solar panel manufacturer Solyndra announced this week that its CEO, Brian Harrison, has resigned, even as the company finds itself in the middle of an escalating scandal that may end up leaving US taxpayers on the hook for $500 million. Harrison submitted his resignation last week, and the company has proposed replacing him with R. Todd Neilson of Berkeley Research Group. The company wants to appoint Neilson to the position of "chief restructuring officer," but the move is subject to the bankruptcy court's approval.
Based in California, Solyndra has received $535 million in federal loan guarantees under a green energy subsidy program. In August, the company was forced to halt its operations and file for bankruptcy protection, leaving more than 1,000 employees without a job. Before its failure, Solyndra had been the Obama's prize example of the benefits of creating green jobs. But since the filing, the company has become the symbol of Republican criticism of Obama's policies and is under investigation by the FBI.
Harrison, along with several other Solyndra executives, were called before Congress last month to testify before the House Subcommittee on Oversight and Investigations. Each of the executives maintained through their testimony that no wrongdoing had taken place, but each also invoked their 5th Amendment right not to answer questions several times.
Republicans are taking advantage of the Solyndra failure, using the case as an example of what can go wrong when government gets involved in the business of funding private companies. The biggest question being asked is why, when the company was just one month from collapsing, executives told Energy Department officials that it was doing just fine. Analysts believe the government will be able to recover at least a portion of the $535 million loaned to Solyndra either through a buyout of the company or a liquidation of its assets.
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