WASHINGTON (AP) — Federal financial experts weren't consulted on a half-billion federal loan to a failed solar company until the last minute, and only then had "about a day" to complete their review, an internal watchdog concluded Wednesday.
The report from the Treasury Department's inspector general found that the department's review was "rushed" and began only after the Energy Department was poised to sign off on the terms of a $528 million loan to Solyndra Inc. The review was completed a day before Energy issued a press release saying it was approving the loan with conditions.
Treasury officials complained to the White House that regulations governing federal loan guarantees say that the department should have been involved earlier in the process, but the inspector general said it was unclear whether the review's late start violated the law.
Treasury officials also told investigators that the shortened time frame was sufficient to review the loan. But investigators found no evidence that concerns raised by those officials, such as the debt-to-equity ratio in the project, were ever addressed by the Energy Department.
The investigation is the latest to look closely at the Obama administration's decision to back Solyndra. Congress also is examining the deal, which was used to showcase the economic stimulus bill's support for renewable energy projects and so-called green jobs.