Enron Connection Cheney example essay topic

SENATE MAJORITY LEADER Tom Daschle called Cheney's stance "unfortunate". The American people have a right to know what the facts are", Daschle said on CBS's "Face the Nation". I think the administration needs to open up, to be willing to be forthcoming with all the information regarding these circumstances". At issue are meetings Cheney or members of his energy task force held with officials of energy firms, including the now-collapsed Enron Corp., while the energy policy was being formed last year. Cheney spoke on the same day a New York Times / CBS News Poll showed a majority of Americans believe the administration is hiding something or lying about its dealings with Enron.

CREATING A 'CHILL " Cheney said his office already has given investigators numerous financial and other records. Advertisement What he won't turn over, despite demands by investigators and Democratic members of Congress, is "a listing of everybody I meet with, of everything that was discussed, any advice that was received, notes and minutes of those meetings", Cheney told "Fox News Sunday". Now, that would be unprecedented in the sense that that's not been done before. It's unprecedented in the sense that it would make it virtually impossible for me to have confidential conversations with anybody", he said". You just cannot accept that proposition without putting a chill over the ability of the president and vice president to receive unvarnished advice".

LAWSUIT CONSIDERED David Walker, the head of the General Accounting Office, the investigative arm of Congress, has said he will decide next week whether to file a lawsuit to force the White House to turn over documents on the meetings. Cheney said the GAO is a "creature of Congress" whose authority does not extend to the White House. "I'm a constitutional officer, and the authority of the GAO does not extend in that case to my office". Daschle suggested that Congress could take action beyond the GAO probe. "We will analyze just what our options are, what prospects there would be for Congress asserting itself", he said, without elaborating. White House chief of staff Andrew Card agreed with Cheney that the administration's ability to have confidential talks with advisers should be fiercely guarded".

I believe very strongly in protecting the privilege of the president" on recommendations that may not come out in public domain, he said on NBC's "Meet the Press". THE ENRON CONNECTION Cheney said the administration's stance is the same as it was last August, when investigators sought similar information. The GAO eventually backed off". What's re-energized it now is the question of Enron and some efforts by some of my Democratic friends on the Hill to try to create a political issue out of what's really a corporate issue", Cheney added on ABC's "This Week". What Enron's all about is a corporate collapse, maybe malfeasance in office, and that will be dealt with... But if the principle was valid last August, the collapse of Enron should not be permitted to undermine the principle", he said.

Though the administration has refused to reveal the inner workings of the energy panel for nearly a year, Senate Republican Leader Trent Lott said "everybody knows what happened" inside. And, he said, "the proof is in the pudding" - the administration developed a plan that balances the need for new domestic petroleum production with conservation programs, upgrading energy transmission infrastructure and alternative fuels, he said. Environmental groups and many Democrats said the Bush plan, large portions of which passed the House in August, were tilted to benefit the energy industry. The plan would allow drilling in the Arctic National Wildlife Refuge and offer tax breaks and incentives totaling $33.5 billion over 10 years, mostly earmarked to a wide range energy producers including coal, oil, and nuclear industries.

OTHER DEVELOPMENTS The rapid collapse of Enron - coming amid allegations that the Texas-based energy company used questionable accounting practices to conceal its precarious financial status - has created repercussions from Houston to Washington. Enron filed for bankruptcy late last year after investors and workers lost fortunes in company stocks. Bush, a friend of former Enron Chairman Kenneth Lay, ordered a review of the nation's pension laws and approved a Justice Department criminal investigation into the company's actions. The accounting firm Arthur Andersen, which kept the company's books, is also under investigation. Congress is holding hearings on the Enron collapse.

There were these other developments: The White House on Friday ordered a review of $70 million worth of federal contracts with Enron and Arthur Andersen to determine whether the embattled companies are worthy of government business. In a letter to the General Services Administration, which oversees government contracts, budget director Mitchell E. Daniels said charges of document shredding, manipulative accounting practices and other activities "could reflect poorly" on the companies and their ability to meet government ethics standards. An aide to Daniels said Enron and Arthur Andersen hold $70 million worth of federal contracts. A former Enron executive was found shot to death in a car in a suburb of Houston, in what an autopsy determined was a suicide.

The executive, 43-year-old J. Clifford Baxter, had challenged the company's questionable financial practices and resigned last May. He was mentioned by name in a warning about hidden losses that Enron executive S herron Watkins wrote last August to company Chairman Kenneth Lay. An auditor's memo from last October shows that some officials at Arthur Andersen were worried about a "heightened risk" of fraud in Enron's books a week before the energy company shocked stockholders with huge losses. The e-mail by Andersen auditor Mark Za jac warned that a computer analysis of Enron's financial activities in the third quarter of last year indicated "a red alert: a heightened risk of financial statement fraud", according to investigators. The warning, released by Rep. John Dingell, D-Mich., added to mounting evidence that Enron's outside accounting firm had strong misgivings about Enron business practices.