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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Bilow who wrote (37315)	8/12/2002 2:38:08 PM
From: BigBull	Read Replies (1) \| Respond to of 281500

Yup, but just enough. He was on his last legs.

To: Bilow who wrote (37315)	8/12/2002 8:15:45 PM
From: stockman_scott	Read Replies (1) \| Respond to of 281500

The 'Gate-less Community In any other administration, Bush's scandal-plagued Army secretary, Thomas White, would be history. But the rules have changed By Joshua Green editor of The Washington Monthly washingtonmonthly.com <<...White worked in various capacities during his 11 years at Enron, eventually becoming vice chairman of Enron Energy Services, which specialized in energy privatization, and was, like the rest of the company, committed to remarkably aggressive growth. Enron executives who worked under him say such zeal frequently eclipsed economic judgment, and EES signed contracts it had no clear ability to fulfill. In several cases, it actually paid out as much as $50 million to secure contracts with companies like IBM as "a show of faith." One reason for the recent criticism of White is that EES had a practice of booking the profits from these multi-year deals up front, allowing executives like White, whose bonuses were tied to performance, to collect millions of dollars before the company had realized any actual profit. Such practices entailed considerable losses. But, as whistleblower Sherron Watkins testified to Congress, EES was under tremendous pressure to show a profit in 2000, which led White's retail division to hide $500 million in losses by dubiously shifting it to the wholesale division, leaving its balance sheet with a profit of $105 million--but one only concocted by creative accounting. "Nobody with a straight face could say EES was making money," says a former EES official, who still works in the field and requested anonymity. "It had been hemorrhaging money every quarter since its inception." Still, in 2001, White received more than $31 million in salary, bonuses, and stock. "White was paid primarily from incentive-based compensation packages," charges Tyson Slocum, research director for the watchdog group Public Citizen. "Therefore, his salary was being inflated by the fraudulent accounting practices that EES was implementing."...>>