Posted on 01/13/2002 7:59:43 AM PST by deport
Jan. 13, 2002, 9:38AM
Enron mark is deep in political pockets
By JULIE MASON
Copyright 2002 Houston Chronicle Washington Bureau
WASHINGTON -- Texas politicians, long the biggest beneficiaries of Enron Corp.'s prodigious campaign spending, are now facing the downside of the fallen corporation's political largess.
Those who pocketed Enron political contributions in the past include lawmakers now seated on committees investigating the energy giant's dramatic fall, and others running for office in contested races.
Throughout Washington, the pervasiveness of Enron's campaign spending is proving problematic for those now wanting to distance themselves from the escalating scandal.
"Whenever you have a corporation that has papered Washington with as much money as Enron has, it's going to leave a taint, even on good people," said Jeff Cronin, spokesman for Common Cause, a watchdog group that tracks campaign money.
Since 1989, Enron has made $5.8 million in campaign contributions to members of Congress. More than $700,000 went to Texans during that period, more than any other state delegation.
Some Texas lawmakers said they plan to return at least a portion of the money they received from Enron. Others, such as Sen. Kay Bailey Hutchison, a Texas Republican whose $99,500 from Enron was the most given to any lawmaker, remain undecided.
"I don't think this is a political issue," Hutchison said. "We can acknowledge they have been politically active, giving money to both Democrats and Republicans, but the issue is, how can we prevent people from being hurt in the future? The issue is to find out what happened."
Rep. Ken Bentsen, a Houston Democrat who sits on the House Financial Services Committee, one of the panels investigating Enron, is the leading House recipient of contributions from the corporation. Since 1989, Bentsen has accepted $42,750 from the energy giant, more than any other member of Congress.
Bentsen said he leads the pack in Enron contributions because he has had more contested races than other members of the delegation.
"If it's an issue for me, it's an issue for virtually every candidate for office coming out of Houston," Bentsen said. "Does it taint all of us? I don't think it does."
Bentsen, who is seeking the Democratic nomination for U.S. Senate, said he plans to donate the $2,000 he got from Enron in the last political cycle to a fund for laid-off Enron employees.
Rep. Chet Edwards, a Waco Democrat, is likely to do the same, his office said.
At least seven congressional investigations of the Enron collapse are under way, and others may be opened in the coming weeks, as lawmakers return to Washington from the holiday recess.
While some lawmakers appear sensitive about the propriety of accepting Enron contributions and launching probes of the company's free fall, others take a different view.
"I don't think the public had much faith that the congressional investigations were going to be objective anyway," said Rep. Kevin Brady, a Republican from The Woodlands.
Brady, who said he was unaware until recently that Enron had contributed $8,000 to his congressional campaigns, said he doesn't plan to give money back.
"I think the public is already a little disgusted with how politicians are tripping over themselves to use the Enron collapse for their own political gain," Brady said.
Other top beneficiaries of Enron among Texas lawmakers include Republican Sen. Phil Gramm, who received $97,350; Rep. Sheila Jackson Lee, D-Houston, $38,000; and House Majority Whip Tom DeLay, R-Sugar Land, $28,900, according to the Center for Responsive Politics, a Washington-based watchdog organization.
Panels probing Enron include the Senate Banking Committee, where Gramm is a member, and the Senate Commerce Committee, where Hutchison sits.
Numerous Texas members of the House who have accepted Enron contributions sit on committees now probing the company, including Rep. Sam Johnson, R-Plano; Rep. Ron Paul, R-Surfside; Rep. Ralph Hall, D-Rockwall; and Rep. Gene Green, D-Houston.
Of all Enron contributions to federal lawmakers since 1989, 73 percent went to Republicans and 27 percent to Democrats, according to several analyses.
Beginning in 1999, when Enron ranked among the top 50 campaign donors to political races, Enron Chairman Ken Lay and other top executives were cashing in millions of dollars in Enron stock. At the same time, many lower-level employees lost their life savings because they put their retirement savings into Enron stock.
The employee losses got worse when they were prevented from selling off Enron stock in their 401(k) retirement plans after the company shocked investors with big revisions in past earnings reports. Enron filed for bankruptcy Dec. 2, with many of its employees losing their jobs and nearly all of their savings.
As officials begin to unravel the biggest corporate collapse in the nation's history, questions about Enron's influence and government access are surfacing in conjunction with details about the company's generous campaign contributions.
Almost half of sitting House members and three-quarters of the Senate received contributions from Enron, according to an analysis by the Center for Responsive Politics.
Last week, Attorney General John Ashcroft disqualified himself from the Justice Department's criminal inquiry into Enron's conduct. The company donated more than $57,000 to Ashcroft's failed 2000 Senate campaign.
Enron also was President Bush's biggest political patron in the 2000 presidential campaign.
Since 1993, when Bush made his first run for Texas governor, Enron gave Bush $623,000 in contributions, according to the Center for Public Integrity, a campaign watchdog group.
Enron also contributed to Bush's Florida recount effort and inaugural ceremonies.
Close ties between Enron executives and the White House have come under scrutiny in recent days, including the disclosure that Lay met with Vice President Dick Cheney while the administration was formulating national energy policy.
Chronicle reporter John C. Henry contributed to this story.
Contributions to Current Members of Congress, 1989-2001*
|
SENATE |
# of Members |
Average Contribution |
Total Contributions |
|
Democrats |
29 |
$3,811 |
$110,513 |
|
Republicans |
41 |
$10,182 |
$417,480 |
|
Independent |
1 |
$2,500 |
$2,500 |
|
TOTAL |
71 |
$7,472 |
$530,493 |
|
HOUSE |
# of Members |
Average Contribution |
Total Contributions |
|
Democrats |
71 |
$3,622 |
$257,140 |
|
Republicans |
117 |
$2,960 |
$346,348 |
|
TOTAL |
188 |
$3,210 |
$603,488 |
Let's see if President Bush pulls some kind of 'wag the dog' or shines the light of truth on Enron.
1) NO candidate for elected post in the United States shall accept any contributions except from voters who are eligible to vote for the post they are seeking.
2) Voters may pool their funds ( eg. PAC's ) but all funds MUST remain traceable back to eligible voters per Sec 1.
3) Funds may be spent by the candidates in any way they choose,
. including transfer to another candidate providing the receiver would have been able to receive those funds directly per Sec. 1.
4) ALL records shall be public and immediately accessible by any interested party.
No chance that this could happen, but it would solve much of the corruption problems.
???
Looks like they bought their way into bankruptcy.
Their rise came during the LAST administration - the new Sheriff on the block is goona put the bad guys in the pokey !
The Dems are going to shoot themseves, it ain't gonna be pretty.
Didn't Clinton toss out the "five years no lobbying rule" as he was carrying out the furniture ?
If McCain's bill passes, no repub will be allowed to have commercials on TV or radio within 60 (SIXTY) days prior to an election. However, and although it would limit the dems too, they have the ultra liberal media to get their stories out, which leaves the repubs dangling in the wind.
And ... you thought McCain was on our side???
Watch out - McCain is just sizing this thing up - I suspect he will be beating the reform drum any day now.
I'd like to see the management held responsible by a jury and attach their profits they made off the stock.
Not only didn't they have any morals -- they didn't even have a point of view!
It won't happen. The fundamental problem of democracy is --How does the establishment ensure that no matter how the voters vote, the winner will be acceptable to the establishment?
The empowering of the Democrat and Republican parties by law to choose candidates and fund their campaigns goes a long way toward solving that problem. Furthermore, it is lots more convenient and safer for the establishment to fund the parties and candidates via corporations and other organizations that they control than to do so personally and publicly.
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