-Caveat Lector-

--- In [EMAIL PROTECTED], [EMAIL PROTECTED] wrote:

matthew d spotted this on the Guardian Unlimited site and thought you
should see it.

To see this story with its related links on the Guardian Unlimited
site, go to http://www.guardian.co.uk

New Enron scandal link to Bush
Two given energy jobs after firm's former head suggested them to
White House
Duncan Campbell  in New Orleans
Friday February 01 2002
The Guardian


The former  head of Enron, Kenneth Lay, gave the White  House a list
of his personal recommendations for  key federal energy posts and two
of the people on  his list were appointed, it emerged yesterday,
providing the strongest evidence so far of the  political influence
wielded by President Bush's  biggest financial backer.

The revelation is likely to increase pressure on the  Bush
administration to open the books on its contacts  with Mr Lay and his
associates. The Enron scandal is  now threatening to reach to the
heart of the White  House.

Mr Lay put forward his list of suggested members of  the federal
energy regulatory commission last spring.  Two of the people he
suggested, Pat Wood, a Texas  Republican who now chairs the
commission, and Nora  Brownell, were appointed by the president.

Mr Lay himself disclosed details of the list in an  interview
recorded last May but only broadcast  yesterday. "I brought a list,
we certainly presented a  list," Mr Lay told the PBS channel. "As I
recall, I  signed a letter which, in fact, had some  recommendations
as to people we thought would be  good commissioners."

The list of around eight names was given to Mr Bush's  director of
personnel, Clay Johnson. The White House  moved swiftly to distance
itself from the claim, which  ties the administration more closely
with the former  Enron chief.

"It was one of many, many recommendations," said a  White House
spokeswoman, Anne Womack. She  added that other members of the energy
industry,  members of Congress and government officials had all
submitted suggestions.

Mr Lay will give evidence next week to congressional  panels
investigating the affair.

In May, the ex-chairman of the commission, Curtis  Hebert, said he
had received a call from Mr Lay  offering Enron's backing to help him
keep his job if he  adapted his views on deregulation. Mr Hebert said
he  had turned down the offer.

Mr Lay confirmed the call had taken place, but said it  was Mr Hebert
who had asked for Enron's backing to  keep his job.

Mr Hebert also said that a few weeks after his  appointment Mr Lay
had told him on the telephone that  "he and Enron would like to
support me as chairman,  but we would have to agree on principles".

While Vice-President Dick Cheney has said that he  met Enron
officials to discuss energy policy, he is  declining to give details
of conversations during six  meetings to the general accounting
office, which has  indicated it will go to court to force the White
House to  identify which energy industry figures met Mr Cheney.

The congressional panels conducting the inquiries have  run into
problems in extracting information from Enron  itself in the wake of
the bankruptcy, which has put  thousands out of work and wiped out
retirement funds.

The chairman of the Senate commerce subcommittee,  Byron Dorgan, said
the corporation had not cooperated  with requests for documents. "We
again renew our  request," he said. Many key documents have already
been shredded.

Enron was the largest contributor to Mr Bush's election  campaign,
donating £1.2m. Mr Lay, a close friend of  the president, has been a
contributor to both parties  but is tied mainly to Republicans and
the Bushes.

Claims from Mr Lay's wife, Linda, that they were facing  ruin because
all their stock had been in Enron were  greeted with scepticism: the
family is down to its last  £21m.



Copyright Guardian Newspapers Limited
--- End forwarded message ---

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