SAN JOSE, Calif. -- Republicans on the House Energy and Commerce Committee released a 14-page memo Tuesday that appears to show that Department of Energy officials urged solar manufacturer Solyndra Inc. to hold off on announcing layoffs last year until after the hotly contested mid-term elections.
The memo serves as a road map for the line of questioning Republicans plan to pursue when U.S. Energy Secretary Steven Chu appears before the bipartisan committee Thursday, in the fourth congressional hearing on the failed Fremont, Calif., solar-panel maker.
Solyndra was awarded a $535 million loan guarantee from the Department of Energy in 2009, then filed for bankruptcy in September of this year, throwing more than 1,000 employees out of work. Chu will be questioned about his role in the loan guarantee and the controversial decision to restructure the terms of the loan earlier this year.
Solyndra's board of directors brought in Brian Harrison as CEO in July 2010, and Harrison was under pressure to cut costs and make the struggling company cash-flow positive. According to the memo, Solyndra executives informed the Department of Energy in October 2010 that Solyndra was in danger of running out of cash in November. On Oct. 25, Harrison told the agency in an email that he would like to go forward with plans to tell employees of impending layoffs.
The email was forwarded by Energy Department staffers to Chu's chief of staff and Vice President Joe Biden's chief of staff, among others. Agency officials apparently then urged Solyndra and its largest venture capital investor to hold off on the announcement until Nov. 3 -- the day after the national mid-term elections. House Republicans said that several emails from Argonaut Private Equity, Solyndra's largest investor, indicate the layoff announcement was postponed because of the Nov. 2 election.
The news of Solyndra's plan to shutter its old plant and lay off workers was first reported in the Nov. 3 edition of the New York Times. Solyndra announced it would lay off about 40 full-time employees and 150 contract workers as it closed its original factory and consolidated into a new facility.