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CNN Live Saturday

White House Told to Save Documents Relating to Enron

Aired February 02, 2002 - 12:06   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: The U.S. is working to sort through the latest information about Daniel Pearl. CNN White House correspondent Kelly Wallace joins us live with the details there.

Hi there, Kelly. What is the White House saying right now about Mr. Pearl's case?

KELLY WALLACE, CNN CORRESPONDENT: Hello to you, Fredricka. Well, you could say the White House and the State Department really striking a very cautious note, not really commenting to the latest hopeful messages coming from the "Wall Street Journal" and the Pakistani government regarding Daniel Pearl.

A State Department spokesman telling us, quote: "We are still trying to interpret and ascertain the facts surrounding this case. We are working in close cooperation with Pakistani officials. Mr. Pearl should be released immediately and unconditionally."

President Bush is spending the weekend at the presidential retreat at Camp David. He, of course, is getting briefed by his advisers about this case.

Mr. Bush also getting briefed about another development we are following, this one more of a domestic matter. The Justice Department notifying late Friday the White House and other federal agencies that it is expanding its criminal probe of the collapse of Enron, calling on the White House and federal agencies to hold onto all notes and documents and e-mails connected with Enron.

Now, White House officials say that this is a prudent move, a wise move, and they say that the documents will show that no one in this White House did anything wrong. The Justice Department is asking for the White House to hold onto documents going back to January, 1999. That would include two years of the Clinton administration, as well as the current years of the Bush White House.

Now, at the same time, some Democrats are saying that this development just reinforces the need for the White House to turn over information related to Vice President Dick Cheney's energy task force. As you know, Fredricka, the congressional investigative arm, the GAO, has been calling on the White House to turn over information about these meetings, meetings which did include meeting with Enron executives, but the White House believes the GAO does not have the authority for that information. Now, at the same time, President Bush devoted his entire radio address to a subject he focused on yesterday. The president saying he is taking steps to prevent what happened at Enron from every happening again. Mr. Bush unveiling his ideas on ways to give workers more control over their retirement savings.

(BEGIN AUDIO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: In recent days, we have heard some encouraging reports on our progress in our work to defeat the recession. But many workers have lost their jobs and their retirement savings, when their companies went bankrupt. Employees who have worked hard and saved all their lives should not have to risk losing everything if their company fails. So my administration is proposing important safeguards to our pension laws to protect the retirement savings of workers.

(END AUDIO CLIP)

WALLACE: Now, Mr. Bush is proposing ideas, such as allowing individuals to sell their company stock and diversify after three years. But, Fredricka, a lot of Democrats say these are half measures and say what is really needed are restrictions, putting a limit on just how much an employee can hold of the stock of the company that employee works for. So debate to get under way, we are sure, in the weeks ahead -- back to you.

WHITFIELD: And, Kelly, back to that Justice Department inquiry, or edict rather. Is there a feeling there that this mandate from the Justice Department now comes because there was a feeling that the White House was not saving any documents by Enron?

WALLACE: Well, you know, a senior official I talked to said there is no sense that the White House was destroying in any way these documents, but there is also no sense that there was any kind of orderly kind of putting together or cataloging of these documents. So it is obviously a move by the Justice Department to say keep those documents together, keep them in place, and if they are needed for this criminal investigation, the Justice Department will call for them.

Obviously, it comes at a time, Fredricka, as the White House has been trying to distance itself from Enron. It is really downplaying the political significance here, but some Democrats say it really just underscores the need for the administration to be more forthcoming -- Fredricka.

WHITFIELD: All right. Thanks very much, and we will find out whether that, indeed, ends up being the case over the next few days or perhaps even the next few courses of weeks -- thanks very much, Kelly Wallace from the White House.

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