Return to Transcripts main page

CNN Live At Daybreak

Enron's Collapse Affects Houston Charities As Well

Aired January 23, 2002 - 05:34   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.
CAROL COSTELLO, CNN ANCHOR: Shareholders and employees of Enron aren't the only victims of the power giant's tumble.

CNN's Casey Wian looks at how Houston charities are weathering the end of Enron's largesse.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN FINANCIAL NEWS (voice-over): Signs of Enron's largesse seemed to be everywhere at the new downtown branch of Houston's Boys and Girls Club. Enron signs outside, in the computer center, in the library, even on the scoreboard in the gym. In better times, Enron pledged to fund this club's entire operating budget, $240,000 a year for 10 years.

Boys and Girls Club president, John Havard, remembers opening day in November, not as a joyous event, but for the tears Enron volunteers shed. All 20 lost their jobs within days, and Enron's financial support was history.

JOHN HAVARD, PRES., HOUSTON BOYS AND GIRLS CLUB: We were opening this facility, and we had done it really based on a commitment from Enron to operate it. And we were going to be coming to this new community and all of a sudden the funds were going to go away, and my first thought was, I've got to go find some money somewhere else.

WIAN: Fortunately, he did. A club board member agreed to cover all but $40,000 of Enron's annual pledge. The new donor's name has already replaced Enron's on the basketball court. The rest of Enron's signs will come down soon.

The Houston Ballet also was left hanging by Enron, which was a big sponsor of its annual performance of the "Nutcracker." The ballet says last month, Enron's $15,000 check, to pay for underprivileged children to attend the show, bounced.

C.C. CONNER, MANAGING DIR., HOUSTON BALLET: Enron has been a major corporate citizen in Houston, so one of the real losses in the Enron problem is they've been a leader. Every time there has been a major campaign of any arts organization, non-profit organization, Enron is always there.

WIAN: From the new YMCA in a Houston suburb, that's named after Enron Chairman Ken Lay after he and the company donated $1 million, to the Alley Theater, which used to enjoy nearly $100,000 a year in annual contributions, Houston charities were swamped with Enron money.

(on camera): Local universities have benefited from Enron's generosity as well. The University of Houston and Rice University together have received more than $13 million in pledges and gifts from Enron and Ken Lay's family.

(voice-over): But no more. While most charities here say they've had little or no direct contact with Enron recently, the company posted a message on its Web site, warning of a reduced role in the community and adding it hopes "other corporate leaders will take up the challenge." The Houston United Way hopes so too. Enron pledged $6 million this year, more than 7 percent of the charity's entire budget.

While Enron's collapse has hurt Houston charities, some say they have seen tougher times, like during the oil bust of the 1980s, when Houston lost a quarter of a million jobs.

PETER MARZIO, HOUSTON MUSEUM OF FINE ARTS: You know, you have a city who has been in the trenches, and it has really seen disaster. What makes this one so different, I think, is that it's vivid, it was immediate, it was dramatic.

WIAN: And most of all, expensive.

Casey Wian, CNN Financial News, Houston.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.