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Senate Commerce Committee Votes to Subpoena Ken Lay

Aired February 05, 2002 - 10:19   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.
BILL HEMMER, CNN ANCHOR: We want to back to Capitol Hill. Apologize for for the interruption. The vote now is getting under way we understand.

Fitz Hollings there, on Capitol Hill.

(JOINED IN PROGRESS)

SEN. ERNEST HOLLINGS (D), COMMERCE CMTE. CHAIRMAN: ... McCain says that on the floor of the Senate. I've watched this thing for 50 years, in public service for 25 years. We never heard about money. Now, perception being the fact in public service, again and again, we have tried every attempt in the Lord's world to try get some kind of campaign financing. I proposed one last year -- and this is not something that comes just out of Enron -- that the one-line constitutional amendment that the Congress is hereby empowered to regulate or control spending in federal elections. If we don't control it, not McCain-Feingold that just controls soft money, we still got hard money, and McCain-Feingold to me is just sort of half a hair cut -- and what I'm trying to do if we can't shame ourselves into acting this year, we will never get control of this corruption.

We al talk about Enron, and the corruption of Mr. Lay and corruption of the officers and everything else, and people are shooting themselves and taking the Fifth Amendment and everything else like that, but this gentlemen, Mr. Lay, bought the government. He got all us on this committee. If he made any exception, we will find out, and I'm sure they can make a contribution to that individual. But the point is that when you get this before us, I don't know of a more dramatic, not just culture of corporate corruption, but a culture of political corruption, namely, cash-and-carry government.

And I say this advisory: I got the file if anybody want to debate. Our distinguished president, he played the game we all played. He got all of the money and millions in there for the governor's race, and I can tell the carry, what was the result. Similarly with respect to the presidential race; the largest contributor not only to him, to the party, to the inauguration and everything else -- that was the cash -- and I can go down the list of the carry, not just a list of appointees, which is a roll call of Enron folks, but more particularly, I mean, you get the secretary of treasury comes in where we repeal the tax havens, offshore tax havens. The secretary cancels them. Whereas, we were holding up on the deregulation, the FERC, we got the new member, he already is accelerating it.

I can go down -- you got the vice president; he is lobbying India, lobbying California, against price caps and everything else down the road. So I don't mind debating this thing, but I'm serious about this. If we can't pass a one-line amendment to control spending, then this public service, this profession I have been in -- and I've got to quote Ella Root; Ella Root says, "Politics is the practical art of self-government." Someone, must attend to it that we are going to self government. And the principle -- he goes on talking -- and he says the principle ground for reproach against any American citizens, it is an politician. In representative America, we all count, but when we passed the election reform act this week, it isn't about chads down in Florida, it is about our corruption, the money in this darn game, both sides, Republican and Democrat.

And if we can't sham ourselves into finally acting -- that's the only reason I use the example. I have watched it for 50 years. You can see, it's individual, then what did I do? I got the particular contribution, but what did I do? But you can get a dramatic picture of what is being done in this particular contribution and the result and everything else like that right now. So I don't think that we are going to yield from anybody saying let's be high-mind because I'm low- minded in mentioning , this; I'm high-minded in mentioning it. My friend, he said, let's don't get political. He gets Clinton into it. I don't know how you get Clinton into this thing. Come on, he is the one that mentioned Clinton. Everyone is playing games. I'm not playing games, I'm dead serious.

And enough said, but you got the motion.

Mr. Chairman, after that comment, I'm sure that it is going to be a whole series of fun and games before we are through here. But I share your opinion concerning the constitutional amendment. As you know, I introduced it before you did, as a matter of fact.

HOLLINGS: Yes.

UNIDENTIFIED MALE: There is a solution.

HOLLINGS: I don't mind you getting credit for it. I'm trying to find some help over there.

UNIDENTIFIED MALE: I'm pleased that we think alike. That's what I'm telling you.

But I don't think we're going to get very far finding the answers to consumer's problems if we spend all our times at politics. We will have to see how that goes.

It is my privilege to move that this committee be authorized to issue the subpoena to compel the testimony of Mr. Kenneth Lay, the former chairman, chief executive officer, current board member of the Enron corporation, and I ask for a roll call vote.

HOLLINGS: Is there further discussion?

(CROSSTALK)

HOLLINGS: He's not the current.

UNIDENTIFIED MALE: He resigned last night. I withdraw that portion.

Is there further discussion? If not, the clerk will call the roll.

(OFF-MIKE)

UNIDENTIFIED MALE: I have a proxy.

(OFF-MIKE) Mr. Stevens.

HOLLINGS: Aye. And let me add these proxies here: Sen. (UNINTELLIGIBLE), Sen. Kerry, Sen. Carnahan -- all vote aye by proxy.

I thank all the members for their cooperation and help.

Committee will be in recess (UNINTELLIGIBLE).

HEMMER: I failed to hear a nay in there. It appeared that everybody on that committee, at least as far as could tell, that the subpoena has been issued for the former CEO of Enron, Ken Lay. At which point he may arrive and respond to that subpoena is anybody's guess right now. We anticipated voluntary testimony, on Monday, from the former CEO. And upon advice from his lawyers this past weekend, Ken Lay backed out of the testimony.

We have confirmed Ken Lay is in Houston, Texas. There had been some question over the past 24 hours as to his whereabouts, whether he is in Washington or Texas. He is back in Houston, Texas.

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