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CNN Live Saturday

Lawmakers Pledge to Investigate Enron

Aired January 12, 2002 - 17:01   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.
CATHERINE CALLAWAY, CNN ANCHOR: Lawmakers have pledged to get to the bottom of what happened to the Enron Corporation no matter what. Now the energy giant filed for bankruptcy last month, and CNN has learned that a number of contacts made in the days prior to that between Enron executives and high-ranking Bush administration officials. Let's go to CNN's White House correspondent Kelly Wallace who's been following this story -- Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Well, hello again to you, Catherine. In the latest development that we know of, a Democratic Congressman Henry Waxman who has really been pushing for information about Enron has sent a letter to the chairman and chief executive officer of Enron, Kenneth Lay. In fact, CNN has obtained a copy of this letter, which went out to Mr. Lay today.

Now in the letter, Democratic Congressman Waxman says that he has obtained some e-mail that Mr. Lay apparently sent out to Enron employees back in August. In one of those e-mails, this on the day that the CEO of Enron at that time resigned, Mr. Lay telling employees that the stock price has suffered substantially, but that he also said -- quote -- "our performance has never been stronger; our business model has never been more robust. And Waxman writes in this letter to Lay he has concerns and questions about what Mr. Lay was saying in August, and how that was just two months before he was on the telephone calling Treasury Secretary Paul O'Neill and Commerce Secretary Don Evans to say that his company was in dire financial trouble.

Now, Waxman has been pressing Lay and Enron for more information. He's also been pressing the administration for more information about the contacts between those two Bush cabinet secretaries and Enron, and also contacts between a top Treasury Department official, Treasury Undersecretary Peter Fischer, who was also contacted by an Enron executive in the fall.

But the White House is continuing to say that U.S. officials acted appropriately, that no U.S. official, no adviser to the president did anything wrong, that no one stepped in to intervene and to try and bail out the large energy company before it became the largest company to declare bankruptcy in U.S. history back in early December.

Further, White House Communications Director Dan Bartlett telling CNN today the administration working very closely to get to the facts and to find out if anyone did anything wrong.

(BEGIN VIDEO CLIP)

DAN BARTLETT, WHITE HOUSE COMMUNICATIONS DIRECTOR: This administration is committed to making sure we make that workers such as those that were hurt in the Enron situation, doesn't happen again and this administration also is very much committed to a full investigation to get to the facts and hold those accountable who may have been accountable for the fall of Enron and the unfair treatment to Enron's workers.

(END VIDEO CLIP)

WALLACE: And we know, of course, the Justice Department has opened a criminal probe into this matter. Also the Bush White House has the Labor Department investigating what happened to Enron employees and their 401(k)s and also task forces have convened to look at exactly what happened in this case and to see if there need to be any new disclosure requirements or new regulations to prevent this from happening to any other employee when a company's finances go under. Catherine, back to you.

CALLAWAY: Looking at another story we're following today, Kelly, in the situation between India and Pakistan, certainly the Bush administration had to be encouraged by the words of Pakistani President Musharraf today, condemning terrorism and cracking down on the militant Islamic groups there.

WALLACE: High praise, Catherine, coming from the Bush White House. You know, it was a number of hours before this administration released any statements because policy analysts here definitely going over the statement and obviously trying to get the right words. This is a very difficult and delicate diplomatic situation.

But we did receive a statement a short time ago from press secretary Ari Fleischer on behalf of President Bush, and in that statement Fleischer says -- quote -- "President Bush welcomes President Musharraf's firm decision to stand against terrorism and extremism and his commitment to the principle that no person or organization will be allowed to indulge in terrorism as a means to further its cause."

And earlier, we received a written statement from Secretary of State Colin Powell who also welcomed this statement by President Musharraf and also saying in light of the speech and in light of the actions taken by the Pakistani leader that the U.S. believes there is a basis for India and Pakistan to resolve their differences through diplomatic and peaceful means.

And Mr. Powell will certainly be focusing on the diplomatic side of the equation. He heads on Tuesday to the region to meet with Indian and Pakistani officials, again, to try to diffuse tensions between the two countries -- Catherine.

CALLAWAY: All right, thank you, CNN's Kelly Wallace at the White House. Thanks, Kelly. WALLACE: Sure.

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