The desire of the Obama administration to fund green energy project extends well beyond our borders. Abengoa, a Spanish company, was the recipient of more than $2.8 billion in taxpayer loans and grants making them the second largest recipient of the $16 billion doled out by the Department of Energy’s 1705 loan guarantee program. Abengoa is now collapsing before our naked steaming eyes and no one should be shocked that the company has connections in high places in the Democratic Party, including Al Gore and a host of Obama political contributors.
Marita Noon reported in 2012 that “In 2007, Gore’s UK-based Generation Investment Management (GIM) bought a stake in Abengoa. He has extolled Abengoa for years, visiting “the largest solar platform in Europe” (operated by Abengoa) in October 2008 and delivering a high-powered speech at the company’s Spanish headquarters in October 2010. GIM Advisory Board Member Mario Molino also serves on Abengoa’s Advisory Committee. GIM was started in 2004 by Al Gore and several Goldman Sachs’ big wigs, including David Blood, Mark Ferguson, and Peter Harris. (Note: Goldman Sachs was a top Obama donor in 2008.)” Former Secretary of Energy head Bill Richardson was hired by Abengoa and the DOE loan guarantee came after the political insider joined the board of the company. Let’s not forget that [mc_name name=’Sen. Dianne Feinstein (D-CA)’ chamber=’senate’ mcid=’F000062′ ] wrote a letter to the Department of Interior asking for their process to acquire land be accelerated in order to the the loan guarantee completed.
Fast forward a few years and one finds that Abengoa is now under investigation by two government agencies, the Department of Labor and the U.S. Customs and Immigration Service. “Former employees of the company have alleged that it routinely engages in violations of U.S. immigration, environmental, and workplace safety laws and uses taxpayer funds to hire foreign workers in violation of federal regulations,” the Washington Free Beacon reported.
Adding to their nightmare, the Boston-based law firm of Block & Leviton LLP, a Boston-based law firm representing investors nationwide, is investigating possible securities law violations by Abengoa SA and its officers and directors,” MarketWatch reported. Abengoa appears to have made contradicting reports regarding its assets and cash flow between July and August of this year, suggesting that, “it seemed to call into question Abengoa’s May 2015 representations that it had at least 400 million of undrawn working capital lines.”
The stock and bonds of the company are collapsing. It won’t be long before liquidation is required. At that point, the U.S. taxpayers will not only lose the $230 million in direct subsidies provided by the White House last year but the billion dollar loan will certainly never be paid back. Abengoa will make Solyndra look like a walk in the park and provide further evidence that green energy is a scam propped up by the American taxpayer — even when the recipients are housed in Spain.