Posts Tagged ‘office of management and budget’

Tom Fitton

Judicial Watch Sues Obama Administration for Solyndra Records

by Tom Fitton

Solyndra was once known as the poster child for the Obama administration’s “green energy” initiative. However, it has become the poster child for the corruption that ensues when the government treats tax money as a play thing and meddles in the private sector.

Solyndra, you may recall, filed for bankruptcy in September, leaving 1,100 workers without jobs and American taxpayers on the hook for a half billion dollars due to an Obama administration stimulus loan guarantee. Thanks to some good work from the House Energy and Commerce Committee along with some thorough reporting by The Washington Post, we now know that not only was this loan a horrible “investment,” but it was also rife with corruption.

And yet, rather than coming clean and releasing all records related to the Solyndra deal, the Obama administration continues to stonewall and obfuscate.

For this reason, JW filed separate lawsuits against the Obama Department of Energy and Office of Management and Budget to obtain records regarding the taxpayer funded Solyndra loans. Here’s what we’re after, pursuant to our original September 6, 2011, Freedom of Information Act (FOIA) request and subsequent lawsuits:

  1. Any and all records regarding, concerning or related to the issuance of loan guarantees to Solyndra LLC, Solyndra Inc., Solyndra Fab 2 LLC, and/or 360 Degree Solar Holdings Inc.
  2. Any and all records of communication between any official, officer, or employee of the Department of Energy and any official, officer or employee of any other government agency, department or office regarding concerning or related to Solyndra LLC, Solyndra Inc., Solyndra Fab 2 LLC, and/or 360 Degree Solar Holdings Inc.
  3. Any and all records of communications between any official, officer or employee of the Department of Energy and any official, officer or employee of the following entities [Solyndra investors] regarding concerning or related to Solyndra LLC, Solyndra Inc., Solyndra Fab 2 LLC, and/or 360 Degree Solar Holdings Inc.:

    a. Argonaut Private Equity LLC

    b. Madrone Capital Partners LLC

    c. U.S. Venture Partners (USVP) LLC

    d. Rockport Capital Partners LLC.

Both agencies have acknowledged receipt of Judicial Watch’s FOIA requests.

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Larry O'Connor

E-Mails: OMB Staffers Joked About Solyndra Bilking Tax Payers

by Larry O'Connor

Just months after receiving the first “Green Jobs” stimulus money from the Obama Administration, the Department of Energy was poised to funnel another $469 million to Solyndra, the failed solar energy start-up at the center of a growing scandal within the Obama Administration.

E-mails released today show that White House staffers in the Dept. of Office and Management had grave concerns over the proposed “Phase II” funding which would have brought the total amount of tax payer money delivered to Solyndra to just under $1 billion.

The Energy Department was actively pushing to provide the second loan guarantee to the troubled solar-panel manufacturer in April and May 2010, when Solyndra’s auditors warned the company was in danger of closing due to its rapidly mounting debts and expenses, according to complete e-mails just released by a House committee investigating the original loan.

Most damning to the Obama Administration is the responses shown in the e-mails by career staffers at OMB.  Clearly not buying the value in throwing good money after bad at a company that was supposed to be part of President Obama’s “Winning the Future” plan for America, unnamed staffers resorted to gallows humor when contemplating the second proposed loan.

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Larry O'Connor

Obama’s Energy Sec Responds to Solyndra Critics: ‘There Are All Sorts of People Who Have Wonderful 20/20 Hindsight’

by Larry O'Connor

President Obama’s Secretary of Energy, Steven Chu, finally responded to a reporter’s question about Solyndra today, but not without the America’s Morning News reporter getting grabbed by one of the members of the secretary’s entourage.


As the Solyndra scandal continues to boil over, the energy secretary has been frequently cited as the main player who was trying to “fast-track” the $535 million loan for the now-failed solar panel manufacturer.  E-mails show serious tension between the DOE and the Office of Management and Budget at the time of the loan and in subsequent months as fears began to rise over the financial viability of the firm.

Considering he’s been at the center of the storm that is Solyndra, it’s likely he has had time to consider his responses to a reporter’s inquiry on the subject.  That’s what makes his “20/20 hindsight” statement so curious.  It’s an obvious dodge.

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Larry O'Connor

Investor and Obama Donor Warned President Not to Visit Solyndra

by Larry O'Connor

As the mainstream media continue to obsess about a painted rock in Texas, the Solyndra story continues to grow.

“A number of us are concerned that the president is visiting Solyndra…  Many of us believe the company’s cost structure will make it difficult for them to survive long term. . . . I just want to help protect the president from anything that could result in negative or unfair press.”

Those words appeared in an email from Solyndra investor and Obama fundraiser Steve Westly to Obama senior adviser Valerie Jarrett in May 2010.  The correspondence is yet another indication that the White House had immediate warning signs that the $535 million loan guarantee of stimulus money pushed through by the Obama Department of Energy (DOE) was at great risk.

President Obama visited Solyndra despite the warnings, and the resulting video footage of the photo-op has become the perfect b-roll to accompany stories describing the failed “green jobs” initiative that the president held up as a shining example of how his administration was “Winning the Future.”

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William Shughart II

Obama’s Regulatory Deja Vu: Dude, It’s Been Done, and It Flopped

by William Shughart II

President Obama, in his State of the Union address Tuesday night, was right to focus on the challenges the United States faces as domestic companies try to compete with low-cost global competitors. But he was wrong to suggest that the United States can “win the future” by getting Washington more involved in innovation and education.

As the president conceded elsewhere, Washington is, in fact, a big part of the problem—with high corporate tax rates and excessive regulation.

Just a week earlier in a Wall Street Journal article, the president elaborated on this, rhetorically declaring a truce with business and laying out the administration’s strategy for moving “toward a 21st-century regulatory system.”

Mr. Obama said this new system would need to strike a balance between the innovativeness, job-creating capacity and robust growth produced by free markets and the responsibility of government to impose “common-sense rules” to protect the public. He called for a “government-wide review of . . . rules already on the books,” and said that “careful consideration” would be given to the costs and benefits of all pending regulations. But as Yogi Berra once said, “This is like deja vu all over again.”

Presidents Clinton and Reagan both signed executive orders requiring that proposed federal regulations be implemented only if their economic benefits exceeded the costs of complying with them. Reagan even established a branch within the Office of Management and Budget—the Office of Information and Regulatory Affairs (OIRA)—to make sure executive branch agencies complied. The executive orders by and large were ineffective.

In fact, the federal government has been expanding its control of the private economy since the 1890s, on the theory that vulnerable people must be protected from cradle to grave by an omniscient bureaucracy that knows what’s best for them. The growth in regulation typically has been justified by analyses, prepared by the regulatory bureaus themselves, which grossly overstate regulation’s benefits and understate its costs.

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Lurita Doan

Deceiver in Chief: Peter Orszag

by Lurita Doan

An unlikely power figure has emerged in the Obama Administration. He’s not a great orator, nor trendy, nor well-known.  But, if the ability to influence national leaders, shape a national agenda and influence public opinion are indicators, then, Peter Orszag, the Director of the Office of Management and Budget (OMB), is, arguably, the most powerful and,  potentially, most dangerous, man in Washington, DC.

Obama Budget

As Director of OMB, Peter Orszag is the arbiter of all financial information shared with Congress.  A series of little-known, OMB “circulars”, such as A-11, have established the rules, and repercussions if violated, by which Executive branch agencies communicate with Congress, especially regarding budgets, funding and agency priorities.

OMB, the President’s gatekeeper for budget matters, executes a complicated juggling act, balancing Obama Administration priorities and budgetary spin, against agency needs.   Frequently, to secure a critical vote, an elected member may be rewarded with a pork project for the folks back home, and, often, it’s the OMB director that has to figure out how to avoid the appearance of a bald-faced bribe, while manipulating CBO scoring on infrastructure projects.  Orszag, as the former head of CBO, understands exactly how this game is played.  Thus, most of the project and budget information that Congress reviews have been shaped by OMB’s preferences.

Peter Orszag controls much of the content and quantity of the data flow to Congress, to the President and to American citizens.  Orszag has oversight over most of the federal government’s critical data reporting structures.  Apart from the ineffective and error-prone Stimulus reporting sites (data.gov, recovery.gov),, OMB oversees federal contract opportunities and federal grants.

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Veronique  de Rugy

The Communist States of America: The New Stimulus ‘Math’

by Veronique de Rugy

Wednesday, the Washington Post reported: “For months, economists and government watchdogs have warned that the job-creation reports should be taken with a heavy grain of salt. . . . Trying to count the number of jobs created or saved may have been a fool’s errand that needlessly undermined the credibility of the overall reporting effort.”

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No kidding. Now, the AP reports that the White House

has abandoned its controversial method of counting jobs under President Barack Obama’s economic stimulus, making it impossible to track the number of jobs saved or created with the $787 billion in recovery money. Despite mounting a vigorous defense of its earlier count of more than 640,000 jobs credited to the stimulus, even after numerous errors were identified, the Obama administration now is making it easier to give the stimulus credit for hiring. It’s no longer about counting a job as saved or created; now it’s a matter of counting jobs funded by the stimulus.

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