The man who knew too much
By David Wastell in Washington, Philip Delves-Broughton in Houston and Olga Craig in London
(Filed: 27/01/2002)
CLIFFORD BAXTER, the former vice-chairman of Enron, knew the secrets of the firm's bankruptcy. But he took them with him to the grave last week in a death that has unleashed scores of conspiracy theories on Capitol Hill.
As he lay dying in the front seat of his Mercedes Benz, a revolver and suicide note by his side, across town in the Houston suburb of Sugar Land his lawyer was on the telephone driving a hard bargain.
Though Baxter, 43, the wealthy former vice-chairman of Enron, the bankrupt energy company, had not yet been summoned to give evidence at the long-awaited Congress hearing into what has become one of America's worst financial scandals, he knew that it was only a matter of time.
In the days before his death, Congressional investigators had tried to contact him. Within days, his lawyer had warned him, he was likely to be subpoenaed.
As, on Friday, the lawyer thrashed out the terms under which Baxter would appear as a witness, police were already smashing the back window of his locked car having been called by a passer-by who had spotted his body slumped over the driving wheel.
At first it seemed a clear case of suicide. While police refused to disclose the contents of the note that Baxter left, close friends have revealed that it spoke of his depression at the prospect of having to testify against his former colleagues.
James Richard, the Fort Bend County Justice of the Peace, decreed that there was "no evidence of foul play", saying there was no need for a post-mortem examination.
Within hours, however, he had overturned that decision, prompted by the news that, in his final days, Baxter had confided that he may "need to get a bodyguard".
The news of Baxter's death has stunned America's financial world to whom he has always been something of an enigma. It is, too, a serious blow to Congressional and criminal inquiries into how Enron fell from being one of the most admired businesses in America to bankruptcy in a few months.
Though he resigned from Enron in May after many months of fierce criticism of its financial dealings, the Securities and Exchange Commission has revealed that Baxter had sold shares worth £10m in the past year.
His death has unleashed scores of conspiracy theories on Capitol Hill. Those who believe that he took his own life speak of his recent depressive behaviour.
In the past week, the normally dapper Baxter - who changed BMWs every few months and, say friends, "liked a lot of toys" - had appeared unshaven, looking hounded and downcast.
He had been a light smoker since his teens, but recently his habit had grown to 50 cigarettes a day and puffing on cigars in the evening. At his family home, a two-storey, £482,000 ranch, a Christmas tree and tattered festive decorations still sit in his lounge.
"He was convinced he was going to be burdened with the responsibility for things that occurred but given none of the responsibility to change them," said Mitch Taylor, an executive with Enron's trading operation.
Though believed to be one of the "whistle blowers" on Enron's financial mismanagement - last August a senior employee warned executives that Baxter was "telling anyone who would listen" about the "inappropriateness of our transaction" - his reaction to colleagues who congratulated him on his moral stance was, at times, bizarre.
"When I told him, two days ago, that he had done a good thing, he broke down in tears and said something about how he might need a bodyguard," said one friend.
When Baxter resigned, it was, ostensibly, to spend more time with Carol, his wife and their two children, aged 16 and 11. Yet he had always put his family before his career. Though a hard worker, he always left his desk at 6pm to drive home.
His house was close to Sweetwater Country Club, where he socialised and was often seen with his family. "He was an executive who took vacations," said John Taylor, a colleague. "He took the kids to Disneyland each year. He was one of the guys who really cared about his family."
His main indulgence, say friends, was his 70ft yacht, Tranquility Base. He was a member of the exclusive Houston Yacht Club and was recently seen viewing bigger yachts saying that he wanted to do more sailing.
He also supported several local charities. He set up a non-profit foundation with his wife, partly funded by Enron and partly by the couple themselves, to donate money. In the year 2000, his tax records show he gave £15,000 to the foundation as well as £3,000 to the local Catholic church.
Jerry Mutchler, the president of the Junior Achievement of South East Texas - one of the many organisations to which Baxter gave generously - said he took a great interest in the charity's work.
"Admittedly, he seemed very down lately, very disappointed. But who, in his position, would not be?"
His wife spoke of the pressure he was under in his final days and told reporters: "People are being investigated. People are being sued. This is going to follow people for the rest of their lives - people who did not do anything wrong."
Among those who believe that he may have been murdered there are whispers that Baxter "knew where the bodies were buried". Certainly there are several senior executives whose reputations - and liberty - could be at risk once investigations reveal the truth of what happened at Enron.
Undeniably, several of the top executives enjoyed a way of life clearly beyond their means and thousands of employees lost their pension investments in company stocks.
"It seemed to us that he was a pretty highly-placed insider at Enron who understood exactly what went wrong there," said James Greenwood, the chairman of the House of Commerce Committee's investigations sub committee, who led the the public cross-examination of other witnesses last week.
Among other conspiracy theorists, there is much talk of "the Vince Foster affair". They refer to the Clinton administration official whose apparent suicide during the Whitewater investigation provoked years of speculation that he had been murdered.
Mr Foster, a close friend of Hillary Clinton and keeper of many of the former President's secrets, was also found dead in his parked car - in a quiet spot not far from the White House.
Baxter, who was born in New York, was an air force captain before entering the business world. He joined Enron in 1991 and was chairman and chief executive of Enron North America before being named chief strategy officer in June 2000. Before he resigned, he was primarily involved in mergers and acquisitions.
He was aware of the shadow that the Enron investigation would cast over his life. But, friends say, he hoped that he would find a new position - perhaps teaching at nearby Rice University, once it had concluded.
He already had two degrees, including a masters in business administration, and was contemplating studying for a PhD. On Friday afternoon, Mr Baxter's family, their home under guard by four police officers, issued a plea for privacy.
That night, the Rev Jesse Jackson, addressing a crowd of several hundred past and present Enron workers during a prayer vigil at a Baptist church in Houston, urged them to turn to one another for help. "Silent isolation is the slippery road to death," he told them.
telegraph.co.uk |
