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CNN Live At Daybreak

GAO Plans To Take White House To Court

Aired January 31, 2002 - 05:08   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: The administration could find itself the target of a lawsuit from the investigative arm of Congress, as CNN's Jeff Levine reports. The dispute is over notes from closed door White House meetings on a national energy policy.

(BEGIN VIDEOTAPE)

JEFF LEVINE, CNN CORRESPONDENT (voice-over): If the lawsuit is filed, it would be the first time the General Accounting Office has taken such action against a federal agency or official. The controversy involves Vice President Dick Cheney, who headed a task force developing the administration's energy policy last spring.

Among those attending some of the sessions, Enron executives.

Critics say the now crippled energy giant, a major contributor to both parties, was trying to sway the White House to its point of view.

REP. HENRY WAXMAN (D), CALIFORNIA: I'm at a loss to understand why the vice president is stonewalling on this issue because it's a routine request. It's the kind of request that's been made of other administrations by the General Accounting Office and they invariably complied with that information.

No one has asked for the records of private conversations.

LEVINE: But the vice president says Enron got no special treatment and the GAO's demand to release the names of those involved in the meetings would do more harm than good.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: This is about the ability of future presidents and vice presidents to do their job and they've always had the capacity in the past to get honest, unvarnished advice, to have people come in and speak the truth without fear that what they say is going to appear on the front page of the newspapers the next morning. And we need to preserve that principle.

LEVINE: A big part of the administration's problem is that Enron had close ties to the Bush cabinet. That includes the president himself, a friend of former Enron Chairman Kenneth Lay. The company's failure cost thousands of employees to lose their jobs and the money they'd invested in Enron's stock and the company's retirement plan. The White House maintains Enron's collapse was bad business, but not a political scandal. Meanwhile, President Bush said, "Bring it on," during one White House meeting in reference to the suit and gave some advice to a gathering of congressional leaders, they'd better get good lawyers.

(on camera): Congressional sources say it may be a couple of weeks before the GAO actually files its lawsuit. In the meantime, both sides have apparently dug in their heels. So this historic confrontation may ultimately have to be decided in court.

Jeff Levine for CNN, Washington.

(END VIDEOTAPE)

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