California fires five energy advisers - report
July 28, 2001 2:44:00 PM ET
LOS ANGELES, July 28 (Reuters) - California Gov. Gray Davis has fired five energy consultants because they had conflicts of interest between their official duties and their personal finances, the Los Angeles Times reported on Saturday.
The five advisers were all involved in purchasing energy for the state from a generator in which they owned stock, the newspaper said.
The firings came after a top state Republican official asked federal regulators on Wednesday to probe possible insider trading violations in Davis' energy team.
Secretary of State Bill Jones, who is challenging the Democratic governor in next year's gubernatorial race, asked the Securities and Exchange Commission to examine his charges, which are already under review by the state Attorney General's Office and Fair Political Practices Commission.
Davis administration officials could not be reached for comment on Saturday. At the time, they dismissed Jones' allegations as "pure politics."
The charges increased pressure on Davis, who has come under fire for his handling of the state's energy crisis. Power shortages and skyrocketing prices have threatened to derail California's economy, which if ranked as a nation would be the world's sixth biggest.
The Los Angeles Times said on Saturday that officials had confirmed the conflict of interest last week after belatedly asking the consultants to file required economic disclosure statements.
The officials removed were traders who bought power on behalf of the state from generator Calpine Corp. (CPN) while simultaneously holding Calpine stock.
In one case, a trader who bought $12,000 worth of Calpine stock more than two years ago saw its value skyrocket, repeatedly doubling in value, the Times reported.
Davis had insisted that a number of other senior advisers, including two Wall Street veterans pitching the state's planned $12.5 billion power purchase bond sale, remain beyond the reach of California's disclosure requirements, the Times said. REUTERS |
