Exploring 'Planet Enron'

As details of the collapse of US energy giant Enron Corporation spill out into view, political pundits are readying for "Enron-gate," writes Thomas Gorguissian from Washington
As each day passes, more details are revealed about the disgrace surrounding the collapse of US energy corporation Enron -- and more shadows are cast across the Bush administration. Some observers may argue that Enron's ignominy has not yet reached the status of a full-fledged political scandal -- it has not yet been appended with the notorious "-gate" -- but certainly the last few weeks of front-page stories have disclosed that the ingredients of a proper scandal are all there.
Last Friday morning, former Enron Vice Chairman J Clifford Baxter -- scheduled to be interviewed by congressional investigators this week -- was found dead in his Mercedes. The death was ruled a suicide by the Harris County, Texas, medical examiner's office. Friends said that the 43-year-old former executive, who resigned last May, was disappointed in recent days, and also "stressed" because he had been named in lawsuits filed by shareholders against Enron.
The week began with reports that employees at Enron's accounting firm had shredded records dealing with the company as recently as January -- long after subpoenas had been served. New congressional hearings opened into the shredding by Enron's accountants, Arthur Andersen, but, as was expected, the chief accountant involved invoked his constitutional Fifth Amendment right not to testify. Last week also witnessed the resignation of Kenneth L Lay, Enron's chairman.
The pressure on the White House has intensified in recent days. The head of the General Accounting Office (GAO) sent a strong signal that he was prepared to go to court to force the White House to turn over the names of industry executives who advised Vice President Dick Cheney on national energy policy last spring. It was reported that Cheney, a former oil executive, told lawmakers he had met with Enron officials, including then-CEO Kenneth Lay, six times last year. "If they don't have anything to hide, they ought to let it out," Representative John Dingell told CNN, adding, "If they want to be suspected, they ought to keep hiding things."
In a letter to Cheney, Representative Henry Waxman, a Democrat from California, said the Bush administration added a provision in its energy plan encouraging oil and gas production in India. According to the letter, this would have helped Enron's troubled power plant project there.
Ten congressional committees are investigating the scandal, as is the Securities and Exchange Commission (SEC) and the Justice Department. No fewer than 71 senators and 188 congressmen received some contributions from Enron at some point in their career.
Many may see all this as an effort by Democrats to tarnish the Bush administration and harm Republican candidates, especially as congressional mid-term elections approach. After being completely focused on domestic threats, international terrorism and the war in Afghanistan, recent polls indicate that Americans are once again considering the economy their first priority. Americans now perceive Republicans as far more entangled in the Enron debacle than Democrats, and as the latest New York Times/CBS News poll shows, "their suspicions are growing that the Bush administration is hiding something or lying about its own dealings with the Enron Corporation before the company filed for bankruptcy protection."
From day one, the White House has sought to portray the collapse of Enron as affecting business, but not having political ramifications. It has been repeatedly pointed out that the company was generous to both Democrats and Republicans. The administration has also blamed the media and its liberal, "biased" approach, citing an evident thirst for a new political scandal as the source of the sensation. US President George W Bush, many political analysts point out, was not completely aware of what happened, nor has he benefited from what happened -- as much as is known till now. Yet many members of the administration, especially some key members in the cabinet, had links to Enron, its CEO and other executives.
Last week the spotlight was on Army Secretary Thomas E White. John Hendren of the Los Angeles Times described him as fighting battles on two fronts. "As his soldiers lead the ground war in Afghanistan, the former Enron Corp. executive has found himself increasingly fielding uncomfortable questions about his role in the energy company's sudden collapse," Hendren wrote. In the same piece Hendron noted that although White excused himself from dealing with Army contracts involving the energy giant, he continued to play a role in advocating the privatisation of energy services at Army installations -- which employ 1.2 million soldiers and civilians on 15 million acres of land.
The New York Times' brilliant Washington columnist, Maureen Dowd, described the scene of the scandal as "the planet of the privileged," writing: "Planet Enron is bigger than one company or one tragedy. It's a state of mind, a subculture, a platinum card aristocracy. Its gravitational pull has long proven irresistible."
Maybe the collapse of Enron will not have a direct impact on the administration, but it seems almost certain that the Enron file will consume the time and efforts of White House staff in order to either manage the crisis or control the damage. And that could mean less time for other issues -- foreign policy, for example. Then again, more involvement in these issues could also distract attention. The storm of Enron is building, and no matter how much the White House boards up the windows and doors, spinning it into obscurity, it may yet hit hard and fast.
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