Time for a Special Counsel
"In the 2000 election, Mr. Lay and his
employees, as well as Enron and its political
action committee, contributed
some $700,000 to Mr. Bush and the Republican
party. There was money for the party convention,
the recount of votes in Florida,
the Bush inaugural. And Enron airplanes for
the campaign."
The New York Times
February 9, 2002
By ERNEST F. HOLLINGS
WASHINGTON -- This week, when Kenneth
Lay, former Enron chairman and George W.
Bush's largest campaign contributor, failed to show
up to testify before Congress, I became convinced
that it is time to appoint a special counsel to
investigate Enron. We need to name a special
counsel, rather than relying on the Justice
Department, because conflicts of interest abound
in this case, particularly at the Justice
Department. Federal law allows the attorney
general to appoint such a counsel when the Justice
Department's involvement would present a conflict
of interest.
Attorney General John Ashcroft recused himself
from the Enron case because he had taken
$57,000 from Enron in his failed bid for the Senate
in 2000. His chief of staff also recused himself,
since he was Mr. Ashcroft's 2000 campaign manager. That leaves Larry Thompson,
deputy attorney general, to oversee the case — or to appoint a special counsel.
While Mr. Thompson is a capable attorney, his former law firm has represented
both Enron and Arthur Andersen, giving a taint of a conflict of interest. Moreover,
Mr. Thompson may already be the busiest man in Washington because he is
overseeing the Justice Department's counterterrorism activities.
A special counsel can also be appointed if there are "extraordinary circumstances"
that would cause the appointment to be in the public's interest. What could be
more extraordinary than the largest bankruptcy in American history? When was
the last time a corporate collapse had Wall Street so jittery, with investors
questioning the accounting practices of every company and so many ripples
spreading out through the economy?
I also find it to be "extraordinary circumstances" when a
top executive commits suicide, voluminous documents are
shredded and witness after witness takes the Fifth Amendment. And in my 35
years in the Senate, I have never witnessed a corporation so extraordinarily
committed to buying government. In the last decade, Enron gave campaign
contributions to 186 House members and 71 senators, including $3,500 to me.
In the 2000 election, Mr. Lay and his employees, as well as Enron and its political
action committee, contributed some $700,000 to Mr. Bush and the Republican
party. There was money for the party convention, the recount of votes in Florida,
the Bush inaugural. And Enron airplanes for the campaign.
The Bush administration says it did nothing for Mr. Lay this fall when he sought
its help. I believe this. But what about help given before? The administration has
provided jobs for a stable of Enron alumni and friends. Thomas White, a former vice
chairman of an Enron subsidiary, became the secretary of the Army and quickly
moved to turn the military's energy needs over to private hands, like those of his
former employer.
Patrick Wood III abruptly replaced Curtis Hebert as head of the Federal Energy
Regulatory Commission; Mr. Hebert hadn't agreed with Mr. Lay on electricity
deregulation. The trade representative, Robert Zoellick, had served on an Enron
advisory board. Energy Secretary Spencer Abraham took $13,500 from Enron as a
senator. I could recite many more connections.
Mr. Thompson, who is now in charge, ought to pick someone with the credibility of
an Archibald Cox, who developed a sterling reputation with the public for his
objectivity during the Watergate investigation. If someone of this ilk finds no
wrongdoing, people would have confidence that the investigation was done right.
In addition, the Senate should have one committee investigating Enron, not six.
Senator Ted Stevens, a Republican from Alaska, and I have asked the Senate
leadership to establish a bipartisan select committee to address the policy
implications of Enron's collapse. The policy concerns are vast: consumer fraud,
electricity deregulation, employee pension funds, Securities and Exchange
Commission regulations, auditing and accounting standards, tax compliance and
shareholder rights.
Through a special counsel and a select committee, the government will ensure a
thorough investigation without a taint of conflict. Only then will the American
public know the Enron problem and its associated consequences are not swept
under the rug.
nytimes.com
Ernest F. Hollings, a senator from South Carolina, is chairman of the Commerce,
Science and Transportation Committee. |
