-Caveat Lector-
http://washingtontimes.com/business/20020221-74571848.htm
Clinton helped Enron finance projects abroad
By Patrice Hill
THE WASHINGTON TIMES
The Clinton administration provided more than $1
billion in subsidized loans to Enron Corp. projects
overseas at a time when Enron was contributing nearly
$2 million to Democratic causes.
Clinton officials refused to finance only one out of
20 projects proposed by the energy company between
1993 and 2000 to build power plants, natural-gas
pipelines and other big-ticket energy facilities
around the world, according to the Export-Import Bank
and the Overseas Private Investment Corp., the
agencies that provided the subsidies.
In addition, the administration, which lauded
Chairman Kenneth L. Lay as an exemplary "corporate
citizen," granted about $200 million worth of
insurance against political risks for nine Enron
projects in such politically volatile areas as
Argentina, Venezuela and the Gaza Strip, according to
documents the agencies provided to the Senate Finance
Committee.
"These projects obviously were a tremendous
benefit to Enron's operations," said Sen. Charles E.
Grassley, Iowa Republican and ranking minority member
of the committee. He noted that the Reagan and Bush
administrations approved no loans for Enron between
1985 and 1992 and provided insurance for only one
Enron power project in Guatemala in 1992.
The Clinton administration provided three loans
between 1994 and 1998 to the now-defunct Dabhol power
project in India. Mr. Clinton's commerce secretary,
Ron Brown, trumpeted the approval of the Dabhol loans
on a trade mission to India in 1995, with Mr. Lay by
his side.
The trip was one of 11 Clinton trade missions
provided at taxpayer expense for corporate executives
from Enron and other companies. The U.S. Trade and
Development Agency, which sponsored the trips, also
provided $1 million in funding to study Enron energy
projects in Russia, Eastern Europe and former Soviet
states.
As congressional committees dig for evidence to
tie Enron and Mr. Lay to the Bush administration,
evidence of Mr. Lay's links to the Clinton
administration are ample and well-documented.
Mr. Lay at times was Mr. Clinton's golf partner
and slept in the Lincoln Bedroom. Other top Enron
officials attended the White House's infamous "coffee
klatches" with Mr. Clinton, according to published
reports.
Mr. Lay offered a seat on Enron's board of
directors to Robert E. Rubin, Mr. Clinton's Treasury
secretary, in 1999 just before he left government, the
Associated Press reported yesterday. Mr. Rubin tried
to get Treasury to intervene on behalf of Enron last
fall when the company credit rating was threatened.
In May 1996, Mr. Clinton lauded Mr. Lay as a good
"corporate citizen" at a White House event because of
Enron's enlightened personnel policies, including
profit-sharing of Enron stock and generous health and
pension benefits. Enron employees now are suing
because those benefits are as worthless as the
bankrupt company's stock.
During the Clinton years, Enron contributed more
than $1 million to the Democratic Party, including
$600,000 to the Democatic National Committee,
according to Federal Election Commission records. Mr.
Clinton and Vice President Al Gore received
contributions of $11,000 and $13,750, respectively,
for their presidential campaigns.
One $100,000 contribution to the DNC was provided
before India gave final approval to Enron's Dabhol
project in June 1996. The largest and most expensive
capital project ever undertaken in India, Dabhol was
of dubious economic value and never went on line.
The World Bank, on reviewing the project, said it
was not economically viable and inordinately benefited
Enron, which was a 65 percent owner. Enron still owes
$203 million on an Export-Import Bank loan for the
project, which the bank says is covered by guarantees
provided by five Indian banks.
Congressional aides said it is not clear what the
taxpayers' liability will be for that and other loans
now that Enron is bankrupt. The Export-Import Bank
said its loans were extended to overseas subsidiaries
of Enron and not the bankrupt corporation. The
overseas investment agency said its exposure is
limited to paying any missed premiums on Enron's
political risk insurance.
Top Clinton officials lobbied personally to
obtain Indian state guarantees for the Dabhol project
after it encountered early problems in 1995. Thomas F.
"Mack" McLarty, the White House chief of staff, made
it a top administration priority to keep the project
from failing. The Bush administration has continued
efforts to salvage the project.
Clinton Energy Secretary Hazel O'Leary led a
succession of missions to India, and Mr. Clinton's
ambassador to India, Frank Wisner, was charged with
keeping the project afloat. After Mr. Wisner left
government in 1997, he took a seat on the board of
directors of a company then controll
