interesting reading

-----Original Message-----
From: Knoblauh, Jay 
Sent: Thursday, February 21, 2002 7:56 AM
To: gregory.schockling@bhlp.com
Subject: FW: [www.washtimes.com] Enron/Clinton ties




-----Original Message-----
From: Knoblauh, Jay 
Sent: Thursday, February 21, 2002 7:54 AM
To: greg.schockling@bhlp.com
Subject: [www.washtimes.com] Enron/Clinton ties


jay.knoblauh@enron.com has sent you an article from The
Washington Times.



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CLINTON HELPED ENRON FINANCE PROJECTS ABROAD 

Patrice Hill
THE WASHINGTON TIMES

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The Clinton administration provided more than $1 billion in
subsidized loans to Enron Corp. projects overseas at a time
when Enron was contributing nearly $2 million to Democratic
causes.

Clinton officials refused to finance only one out of 20
projects proposed by the energy company between 1993 and
2000 to build power plants, natural-gas pipelines and other
big-ticket energy facilities around the world, according to
the Export-Import Bank and the Overseas Private Investment
Corp., the agencies that provided the subsidies.

In addition, the administration, which lauded Chairman
Kenneth L. Lay as an exemplary "corporate citizen," granted
about $200 million worth of insurance against political
risks for nine Enron projects in such politically volatile
areas as Argentina, Venezuela and the Gaza Strip, according
to documents the agencies provided to the Senate Finance
Committee.

"These projects obviously were a tremendous benefit to
Enron's operations," said Sen. Charles E. Grassley, Iowa
Republican and ranking minority member of the committee. He
noted that the Reagan and Bush administrations approved no
loans for Enron between 1985 and 1992 and provided insurance
for only one Enron power project in Guatemala in 1992.

The Clinton administration provided three loans between 1994
and 1998 to the now-defunct Dabhol power project in India.
Mr. Clinton's commerce secretary, Ron Brown, trumpeted the
approval of the Dabhol loans on a trade mission to India in
1995, with Mr. Lay by his side.

The trip was one of 11 Clinton trade missions provided at
taxpayer expense for corporate executives from Enron and
other companies. The U.S. Trade and Development Agency,
which sponsored the trips, also provided $1 million in
funding to study Enron energy projects in Russia, Eastern
Europe and former Soviet states.

As congressional committees dig for evidence to tie Enron
and Mr. Lay to the Bush administration, evidence of Mr.
Lay's links to the Clinton administration are ample and
well-documented.

Mr. Lay at times was Mr. Clinton's golf partner and slept in
the Lincoln Bedroom. Other top Enron officials attended the
White House's infamous "coffee klatches" with Mr. Clinton,
according to published reports.

Mr. Lay offered a seat on Enron's board of directors to
Robert E. Rubin, Mr. Clinton's Treasury secretary, in 1999
just before he left government, the Associated Press
reported yesterday. Mr. Rubin tried to get Treasury to
intervene on behalf of Enron last fall when the company
credit rating was threatened.

In May 1996, Mr. Clinton lauded Mr. Lay as a good "corporate
citizen" at a White House event because of Enron's
enlightened personnel policies, including profit-sharing of
Enron stock and generous health and pension benefits. Enron
employees now are suing because those benefits are as
worthless as the bankrupt company's stock.

During the Clinton years, Enron contributed more than $1
million to the Democratic Party, including $600,000 to the
Democatic National Committee, according to Federal Election
Commission records. Mr. Clinton and Vice President Al Gore
received contributions of $11,000 and $13,750, respectively,
for their presidential campaigns.

One $100,000 contribution to the DNC was provided before
India gave final approval to Enron's Dabhol project in June
1996. The largest and most expensive capital project ever
undertaken in India, Dabhol was of dubious economic value
and never went on line.

The World Bank, on reviewing the project, said it was not
economically viable and inordinately benefited Enron, which
was a 65 percent owner. Enron still owes $203 million on an
Export-Import Bank loan for the project, which the bank says
is covered by guarantees provided by five Indian banks.

Congressional aides said it is not clear what the taxpayers'
liability will be for that and other loans now that Enron is
bankrupt. The Export-Import Bank said its loans were
extended to overseas subsidiaries of Enron and not the
bankrupt corporation. The overseas investment agency said
its exposure is limited to paying any missed premiums on
Enron's political risk insurance.

Top Clinton officials lobbied personally to obtain Indian
state guarantees for the Dabhol project after it encountered
early problems in 1995. Thomas F. "Mack" McLarty, the White
House chief of staff, made it a top administration priority
to keep the project from failing. The Bush administration
has continued efforts to salvage the project.

Clinton Energy Secretary Hazel O'Leary led a succession of
missions to India, and Mr. Clinton's ambassador to India,
Frank Wisner, was charged with keeping the project afloat.
After Mr. Wisner left government in 1997, he took a seat on
the board of directors of a company then controlled by
Enron. Mr. McLarty also performed work for Enron after
leaving the administration.


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This article was mailed from The Washington Times
(http://www.washtimes.com/business/20020221-74571848.htm)
For more great articles, visit us at
http://www.washtimes.com

Copyright (c) 2001 News World Communications, Inc. All
rights reserved.



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