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Non-Tech : The ENRON Scandal -- Ignore unavailable to you. Want to Upgrade?

To: Mephisto who wrote (1637)	1/30/2002 1:01:41 AM
From: Karen Lawrence	Read Replies (1) \| Respond to of 5185

Even with campaign reforms, lobbyists still pack a powerful whollop:Enron acknowledges it may have underreported lobbying expenses to Congress by half PETE YOST, Associated Press Writer Tuesday, January 29, 2002 Breaking News Sections WASHINGTON (AP) -- Enron Corp. acknowledged Tuesday night that it may have failed to disclose to Congress about half the money the energy company spent on lobbying, which totals more than $1.6 million for the first part of last year. The discrepancy came to light when a nonprofit group, the Center for Responsive Politics, cross-checked Enron's report to Congress with those filed by outside lobbying firms representing the company. A dozen premier lobbying firms with Washington offices were hired by Enron and reported being paid more than $1.6 million for the first six months of last year. Enron said it spent about half that -- $825,000 -- in a report filed with Congress on Aug. 15. Enron spokeswoman Karen Denne said the company's figure is meant to include both lobbying by the company's governmental affairs staff and work by outside lobbying firms. "We are reviewing those fees and will respond in writing to the secretary of the Senate," said Denne. Among the lobbyists doing work for Enron last year were Republican strategist Ed Gillespie, ex-Democratic Louisiana Sen. J. Bennett Johnston, Republican Party head Marc Racicot and former aides to House Majority Whip Tom DeLay. Racicot still collects a salary from his firm, but said when he took the GOP post he wouldn't lobby for Enron anymore. In the face of mounting criticism, Racicot has since given up his other lobbying clients as well. Larry Noble, the executive director of the nonprofit group that uncovered the discrepancy, said "it is particularly critical at this time for the public to have the full picture of Enron's lobbying activities." In another development, Enron said it hired private companies to shred documents, but an attorney said the documents were not sensitive financial records. FBI agents have been investigating allegations of massive shredding of documents at Enron's Houston headquarters. The company's auditor, Arthur Andersen LLP, has acknowledged destroying Enron-related documents and e-mails that were sought by federal and congressional investigators. Enron hired two companies, one of them named Shredco, to destroy a huge volume of documents, ABC News reported Tuesday night, quoting unidentified Enron lawyers. Robert Bennett, Enron's Washington attorney, called the ABC report "a bunch of nonsense." "There was a contract with a company when Enron consolidated down from two buildings to one building," Bennett said. "There was a lot of information including payroll records, resumes, Social Security numbers. These trucks came in the light of day." Bennett insisted there was no improper shredding. "We should wait for the investigation of the FBI," Bennett said. Rep. Jim Greenwood, R-Pa., whose House Energy and Commerce investigative subcommittee has been examining the Enron affair, said that regardless of what kind of documents were destroyed, "it's outrageous that a company that's the focus of investigations ... wouldn't understand that this is no time to be shredding documents." "Even if they're shredding old newspapers, they need to contact the Justice Department" to get permission to do so and allay suspicions, Greenwood said in an interview. The Justice Department is pursuing a criminal investigation of Enron and Andersen. The Securities and Exchange Commission has been investigating since Oct. 31. Eleven congressional panels also have opened inquiries. A report that Enron's political action committee filed Tuesday with the Federal Election Commission shows the PAC donated at least $26,000 to congressional campaigns in November, the month before the company filed for bankruptcy protection. Recipients included several lawmakers on the committees now investigating Enron's collapse. At least two of them, Rep. Mary Bono, R-Calif., and Rep. Greg Walden, R-Ore., plan to give their donations to charity. In all, the Enron PAC donated at least $120,188 to federal candidates and fund-raising committees last year, the report shows. The report covers only "hard money" contributions -- donations that can be given in limited amounts but spent by recipients as they choose -- by the PAC, which is funded by employee contributions. It does not include "soft money" donations by the company itself to the Republican and Democratic national fund-raising committees, including the parties' House and Senate committees.