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WASHINGTON
- November 9 - Caught in a swarm of controversy over questionable business
deals and faulty financial statements that have caused its stock
price to plummet, energy giant Enron announced this week that
the company could be sold to rival Dynegy, signaling the demise
of one of the country's biggest political contributors--and one
of the most generous donors to President Bush.
The announcement comes almost a year to the day after an
election in which Enron contributed more than $2.4 million in
individual, PAC, and soft money contributions to federal
candidates and parties, ranking it among the top 50
organizational donors in the 1999-2000 election cycle. The
company's contribution total for the 2000 elections more than
doubled its political donations in each of the two previous
election cycles.
Enron has already contributed nearly $173,000 to candidates and
parties so far this year, almost 90 percent to Republicans.
Since the 1989-90 election cycle, Enron has made nearly $5.8
million in campaign contributions, 73 percent to Republicans and
27 percent to Democrats.
Earlier this year, Enron was one of the country's 10 largest
companies and the leading energy broker in the United States.
But in recent weeks the Houston-based energy trading company has
come under fire for entering into business partnerships that
presented possible conflicts of interest for several Enron
executives. The Securities and Exchange Commission has opened a
formal investigation into those partnerships.
The federal government's involvement could create a quandary for
President Bush, who raised nearly $114,000 in PAC and individual
contributions from Enron in 1999-2000, making the company one of
Bush's top donors. Enron also donated $100,000 to the
Bush/Cheney inaugural gala in January, a contribution that was
matched by Enron's chairman and chief executive, Kenneth Lay,
and his wife. The Lays have contributed a total of almost
$883,000 to candidates and parties since 1989, of which 90
percent went to Republicans. They are by far the largest
political contributors among Enron employees.
Lay is a longtime friend of the president, and was one of Bush's
top contributors during the presidential election and two
gubernatorial campaigns in Texas. Lay, listed by the Bush/Cheney
campaign as a Pioneer who raised at least $100,000 for the
election, reportedly has been one of the administration's
closest advisors on energy policy since Bush took office.
Enron hopes to draw on close relationships with a number of
elected officials for help during its current crisis. The
company spent $2.1 million lobbying Congress and the White House
in 2000, an increase over the $1.9 million it spent on lobbying
in 1999. Enron has contributed to the campaign accounts of 71
current senators and 188 current members (43 percent) of the
House.
Not surprisingly, the top recipients of Enron's contributions
among current members of Congress are all from Texas. Sens. Kay
Bailey Hutchison (R) and Phil Gramm (R) lead the list of Senate
recipients since 1989. The seven biggest House beneficiaries of
Enron's giving since 1989 are also from Texas. They are led by
Democratic Rep. Ken Bentsen.
Click here for a look at Enron's political giving over the last
decade, including contributions to presidential candidates and
members of Congress:
http://www.opensecrets.org/alerts/v6/alertv6_31.asp
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