Enron - Questions for Lieberman

Since U.S. Sen. Joseph Leiberman has announced that his committee will explore the political connection of Enron Corp. with both political parties, and since the media has tried hard to tie Enron to President Bush ... I feel the following letter (which I received by e-mail) is timely.

To: Sen. Joseph Leiberman

706 Hart Senate Office Building

Washington, D.C. 20510

Re: Enron investigation

Dear Senator Leiberman,

I watched your Sunday morning appearance on "Face the Nation" recently with intense interest. Inasmuch as I own a fair amount of Enron stock in my SEP/IRA, I'm sure you can understand my curiosity relative to your investigation. Knowing you to be an honorable man, I feel secure that you will diligently pursue the below-listed matters in an effort to determine what part, if any, these matters contributed to the collapse of Enron.

1. Government records reveal the awarding of seats to Enron executives and Ken Lay on four trade missions and seven Commerce Department trade trips during the Clinton administration's eight years.

a. From January 1995 through June 1996, Clinton commerce secretary Ron Brown and White House counsel Mack McLarty assisted Ken Lay in closing a $3 billion power plant deal with India. Four days before India gave final approval to the deal, Enron gave $100,000 to the DNC.

b. Clinton national security adviser Anthony Lake threatened to withhold aid to Mozambique if it didn't approve an Enron pipeline project. Subsequent to Lake's threats, Mozambique approved the project, which resulted in a further $770 million electric power contract with Enron. Perhaps, if Lake had not been so busy strong-arming for Enron, he might have been focused on something obliquely related to national security like, say, Osama bin Laden. Could it be that a different, somewhat related, investigation is warranted?

c. In 1999, Clinton energy secretary Bill Richardson traveled to Nigeria and helped arrange a joint, varied, energy development program which resulted in $882 million in power contracts for Enron from Nigeria. Perhaps if Richardson had been more focused on domestic energy, we might have avoided:

i. The severe loss of nuclear secrets to China and, concurrently

ii. Developed more domestic sources of energy.

d. Subsequent to leaving Clinton White House employ, Enron hired Mack McLarty (White House counsel), Betsy Moler (deputy energy secretary) and Linda Robertson (treasury official). Even a person without a high school diploma (no disrespect to airline security screeners) can see that this looks like Enron paying off political favors with fat-cat corporate jobs at the expense of stockholders and Enron pension employees.

e. Democratic Mayor Lee P. Brown of Houston (Enron headquarters city) received $250,000 just before Enron filed Chapter 11 bankruptcy. Isn't that an awful lot of money to throw away right before bankruptcy? The Democratic National Committee was the recipient of hundreds of thousands of dollars from 1990 through 2000. The above matters appear to be very troubling and look like, smack of, reek of, political favors for campaign payoffs. I know you will find out.

2. Recently, former Clinton treasury secretary Robert Rubin called a top U.S. Treasury official, asking on Enron's behalf for government help with credit agencies. As you well know, Rubin is the chairman of executive committee at Citigroup, which just coincidentally is Enron's largest unsecured creditor at an estimated $3 billion.

3. As you well know, Citigroup is Sen. Tom Daschle's largest contributor ($50,000) in addition to being your single largest contributor ($112,546). This fact brings to mind some disturbing questions I feel you must answer.

a. Have you, any member of your staff, any Senate or House colleagues, any relatives or any friends of yours, been asked by Citigroup to intercede on its behalf in an effort to recover part or all of Citigroup's $3 billion at the expense of Enron's shareholders, employees and/or Enron pensioners?

b. Did your largest contributor, Citigroup, have anything to do with the collapse of Enron?

c. Enron has tens of thousands of employees, stockholders and pensioners who have lost their life savings. How will you answer their most obvious question? Do you represent Citigroup, your largest contributor, or do you represent the Enron employees, et al, who stand to lose if Citigroup recovers any of its $3 billion? During "Face the Nation," both you and Sen. John McCain praised Attorney General John Ashcroft for recusing himself from the Justice Department investigation because he had once received a contribution from Enron. I know in my heart that, being the honest gentleman you are, you will now recuse yourself because of the glaring conflict of interest described above. I also know that you will pass this letter to your successor for his or her attention.

Very truly yours,

An interested Enron stockholder

Gary Rust is chairman of Rust Communications.