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Friday, October 14, 2011

Crony Capitalism Alert - the Solyndra Plot Thickens

The Wall Street Journal reports that Solyndra was getting lots of help from various quarters including a deal with the Navy.

Excerpts:

Solyndra Came Close to Landing Navy Deal 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.

RockPort recommended Solyndra to the military, along with four other companies. In the end, the negotiations for Solyndra's inclusion in a $1 million pilot program fell apart when the Navy learned about the company's pending bankruptcy filing...

Kevin Kopczynski, a RockPort principal who sits on the Pentagon panel, said he recommended Solyndra based on its technology and complied with the government's disclosure requirements.

Mr. Kopczynski said RockPort disclosed its $47.5 million investment in Solyndra to the Pentagon panel, though it didn't disclose that Solyndra was in financial trouble and said it wasn't required to under the panel's rules. Gaining the Navy as a customer could have helped Solyndra's shaky financial state, and by extension RockPort's $47.5 million investment in the Fremont, Calif., firm.
To be sure, the money that the Navy planned to spend with Solyndra would not have saved the company from bankruptcy, but the stench of crony capitalism and blatant conflict of interests surrounding this company and this administration forces you to the conclusion that the people involved either are blind to their corruption, or simply don't care.

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