FLASHBACK: CLINTON OFFICIAL MET WITH ENRON CHAIRMAN; $100,000 CASH DONATION TO DEMOCRATS TIMED TO PLANT APPROVAL
TIME MAGAZINE
SEPTEMBER 1, 1997
On Nov. 22, 1995 President Clinton scrawled an FYI note to chief of staff Mack McLarty, enclosing a newspaper article on Enron Corp. and the vicissitudes of its $3 billion power-plant project in India.
McLarty then reached out to Enron's chairman, Ken Lay, and over the next nine months closely monitored the project with the U.S. ambassador to New Delhi, keeping Lay informed of the Administration's efforts, according to White House documents reviewed by TIME magazine.
In June 1996, four days before India granted final approval to Enron's controversial $3 billion power-plant project, Enron's gave $100,000 to President Clinton's party.
Enron denies that its gift was repayment for Clinton's attention, and White House special counsel Lanny Davis says McLarty acted out of concern for a major U.S. investment overseas, TIME's Michael Weisskopf reported.
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DRUDGE NOTE: McLarty was later hired by Enron. Lay also played golf with President Bill Clinton and slept in the Clinton White House. A master of political manipulation of both parties, Lay served as an adviser to the Clinton White House on energy issues. The Clinton administration, in turn, helped Enron get a contract for a gas pipeline in Mozambique and other projects, according to reports.
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-Lloyd Bensten, Clintons first treasury secretary was a recipient of Enrons largesse. At the time of his campaign for Senate, he received the second largest donation from Enron according to the Center for Responsive Politics.
-Robert Rubin, Benstens successor, was involved with Enron while he worked as an investment banker Goldman & Sachs. Clinton first hired Rubin to head his National Economic Council. Soon afterwards, Rubin wrote on Goldman Sachs stationery to former clients, including Enron, in which he ''looked forward to continuing to work with you in my new capacity.''
-In Aug. 1993, McLarty arranged an invitation for Lay to play golf with Clinton in Vail, Colorado. This date irritated Oscar White, chief executive of Coastal, another natural gas company that had helped the Clinton election campaign raise funding. These connections to the Democratic administration have helped Enron considerably -Ken Silverstein Counterpunch
-Clinton officials publicly helped Enron win the contract in India as well as in Indonesia. Enron had received U.S. government funds to build power plants in China, the Philippines and Turkey. Enron also won contracts in Pakistan and Russia while accompanying senior U.S. government officials on state trips. In June 1996, four days before India granted final approval to Enron's project, Lay's company gave $100,000 to the DNC.
-According to the Houston Chronicle, Enron got permission to build a pipeline from Mozambique to South Africa after National Security Adviser Anthony Lake threatened to withhold aid to Mozambique if it didnt approve the project.
-The bulk of Enron's alleged chicanery had to have happened during the Clinton administration.
- Lee. P Brown (D) of Houston received $250,000 just before Enron filed Chapter 11. Enron campaigned against the conservative candidate for mayor.
-Kenneth Lay hired the firm of Clinton's former chief of staff Mack McLarty.
-The Center for Responsive Politics lists Democratic Senators Chuck Schumer of New York, John Breaux of Louisiana, and Jeff Bingaman of New Mexico--chair of the Senate Energy Committee--among the top beneficiaries of Enron's political donations
-Kenneth Lay retained as his top D.C. lobbyist Linda Robertson, a Democrat who worked for the Clinton Treasury Department.
-Dynegy greased Henry Waxman's palms with thousands of dollars.
-Democratic Senatorial Campaign Committee received three checks from the Houston-based energy and trading giant totaling $100,000. Karen Denne, an Enron spokeswoman, said the company had a record of two checks written to the committee -- dated Sept. 24 and Nov. 2
- No. 20 on the Enron money list since 1989 is the Senate's leading Democrat, Tom Daschle of South Dakota.
-Enron was apparently a big backer of the Kyoto Treaty .
Both Enron and its auditor, Arthur Andersen, which are being scrutinized by lawmakers and the Bush administration, have been active political donors. During the 2000 election cycle, Attorney General John Ashcroft received $57,500 from Enron and its employees; the company contributed to 71 current senators and 188 current House members.
Both companies were big givers to the parties and their candidates during the 1999-2000 campaign cycle ...
| Recipient | Enron Contributions | Arthur Andersen Contributions |
| Republicans | $1,766,244 | $1,013,469 |
| Democrats | 680,654 | 414,336 |
| Bush campaign | 113,800 | 145,650 |
And Enron has been distributing money widely in Congress for more than a decade
Top recipients of Enron contributions, 1989-2001:
| Senate | Amount | House | Amount |
| Kay Bailey Hutchison (R-Texas) | $99,500 | Ken Bentsen (D-Texas) | $42,750 |
| Phil Gramm (R-Texas) | 97,350 | Sheila Jackson Lee (D-Texas) | 38,000 |
| Conrad Burns (R-Mont.) | 23,200 | Joe Barton (R-Texas) | 28,909 |
| Charles Schumer (D-N.Y.) | 21,933 | Tom DeLay (R-Texas) | 28,900 |
| Michael Crapo (R-Idaho) | 18,689 | Martin Frost (D-Texas) | 24,250 |
| Christopher Bond (R-Mo.) | 18,500 | Charles Stenholm (D-Texas) | 14,439 |
| Gordon Smith (R-Ore.) | 18,000 | Chet Edwards (D-Texas) | 10,000 |
| Jeff Bingaman (D-N.M.) | 14,124 | Doug Bereuter (R-Texas) | 10,000 |
| Chuck Hagel (R-Neb.) | 13,331 | Larry Combest (R-Texas) | 9,820 |
| Pete V. Domenici (R-N.M.) | 12,000 | John Dingell (D-Mich.) | 9,000 |
Note: All figures include contributions by companies and their employees
Source: Center for Responsive Politics
Enron reported in its court filing yesterday that Citigroup's Citibank unit is its largest unsecured creditor, with two loans totaling $3 billion. That stinks as much as or more than anything else I have seen.
So, here we have Leiberman investigating Enron who just happens to owe his biggest contributor $3 billion dollars.
The big New York banks are getting smacked in the Enron fiasco. Rather than being distracted by tenuous White House links, I think the New York bank angle is much more interesting. If history is any measure, the big New York banks aren't the ultimate losers in situations like this one. Often, it has been the taxpayers.