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Firm was urged to stay mum on layoffs

WASHINGTON — The Obama administration, which gave the solar company Solyndra a half-billion-dollar loan to help create jobs, asked the company to delay announcing it would lay off workers until after the hotly contested November 2010 midterm elections that imperiled Democratic control of Congress, newly released emails show.

The announcement could have been politically damaging because President Barack Obama and others in the administration had held up Solyndra as a poster child of its clean-energy initiative, saying the company's new factory, built with the help of stimulus funds, could create 1,000 jobs.

Six months before the midterm election, Obama visited Solyndra's California plant to praise its success, even though outside auditors had questioned whether the operation might collapse in debt.

As the contentious 2010 election approached, Solyndra found itself foundering, and it warned the Energy Department it would need an emergency cash infusion.

A Solyndra investment adviser wrote in an Oct. 30, 2010, email, without explaining the reasons, that Energy Department officials were pushing “very hard” to delay making the layoffs public until the day after the election.

The announcement ultimately was made Nov. 3, immediately following the Nov. 2 vote.

Emails describing the events were released Tuesday as part of a House Energy and Commerce committee memo, provided in advance of Energy Secretary Steven Chu 's scheduled testimony before the committee's investigative panel Thursday.

As a result of the 2010 election, that committee now is controlled by Republicans, whose aggressive nine-month investigation into Solyndra has focused partly on whether politics played a role in the company's selection for a federal loan.

Amid the fallout from the company's shutdown in August, the White House has said tough scrutiny of the department's oversight efforts is warranted and has launched its own independent review of the loan program. Although the president has publicly supported Chu, senior White House officials in February circulated an outside adviser's recommendation that Chu be replaced because of anticipated political controversy over the energy loans.

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