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JW Launches Enron Suit Investigates Clinton Connections By now, the story is familiar to most Americans. Energy giant Enron Corporation established shady partnerships to hide debt and inflate profits, artificially keeping the stock price high. The firm’s brass then engaged in a billion dollar sell-off of stock just before the company collapsed, stripping Enron employees of their retirement savings. But while the attention of the media and Congress is focused on the financial fraud element of the scandal, Judicial Watch is interested in the root of the problem—pervasive political, business and legal corruption. In fact, JW filed a lawsuit in federal court in Houston on February 15 against Enron directors and officers, the Arthur Anderson accounting firm, corrupt government officials, and others, such as the Congress who counseled Enron to allegedly break the law. Much has been made of the Enron connections to the Republican Party, in general, and President Bush, in particular, by Democrats looking for a campaign issue. After all, Enron contributed more than $1 million to the Republican Party and $113,000 in soft money to President Bush’s campaign. They also attempted unsuccessfully last fall to earn the assistance of Bush Administration officials as they were sliding quickly towards bankruptcy. But upon closer inspection, Enron’s ties to the Clinton Administration may, in the long run, be more insidious than those to the Bush Administration. The Washington Times reports that the Clinton Administration provided more than $1 billion in subsidized loans to Enron for overseas projects, while at the same time receiving nearly $2 million from Enron for various Democratic candidates and causes. Overall, out of the 20 projects for which Enron sought financing from 1993 through 2000, the Clinton Administration approved 19, refusing only one. Many of these projects were consummated during the infamous Clinton trade missions orchestrated by then Commerce Secretary Ron Brown. (Judicial Watch was the first to discover how Enron executives and other fat-cat political donors were sold seats on trade missions by Ron Brown.) Enron was invited to participate in 11 such taxpayer financed trade missions. Further, the Clinton Administration granted $200 million in insurance to Enron to help cover political risks for projects in unstable countries such as Argentina and Venezuela. The increase in Enron’s political activity during the Clinton years becomes obvious when considering that Enron received no loans from Presidents Reagan and Bush Senior from 1985 through 1992, and received insurance for only one project in 1992—a power plant in Guatemala. Beyond financial reciprocation, there were other benefits for both Enron and Clinton officials. Enron CEO Ken Lay took his turn in the Lincoln Bedroom while also serving as a golf partner for Bill Clinton. Mr. Lay also offered a seat on Enron’s board of directors to Robert Rubin, Treasury Secretary under Clinton. Rubin has been an active advocate for Enron during the last year trying to save the company. He is on the executive committee of Citigroup, Inc., which joined other lending institutions in providing hundreds of millions of dollars in loans to Enron. “The problem with Enron is much deeper than the financial fraud widely reported in the press,” said JW Chairman Larry Klayman. “The root of the problem is the massive political, business and legal corruption that exploded under President Clinton.” Judicial Watch’s lawsuit will get to the truth about the corruption that allegedly allowed Enron to obtain exemptions from federal law and largely avoid regulation and oversight of its operations and transactions. More to come…
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