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FRIDAY, JANUARY 11, 2002

The fallout over the bankruptcy of Enron Corp. increased in breadth on Thursday with a number of revelations that may prove damaging to the Bush administration and increase the liability of the company.

The White House confirmed that top company executives, large contributors to Republican causes, contacted Commerce Secretary Donald L. Evans and Treasury Secretary Paul H. O'Neill to ask for assistance in advance of the company's collapse. The White House said no help was offered to the company but the company disputed the government's version of the events.

As the Department of Justice moved towards a criminal inquiry, Attorney General John Ashcroft recused himself from the matter. He received $54,499 from the company during a 2000 Senate run, according to the watchdog group Common Cause.

The entire U.S. Attorney's office in Houston, Texas, where Enron is based, also recused itself. Many of its attorneys have close ties to the company, said U.S. Attorney Michael T. Shelby, including himself.

And finally, Arthur Andersen -- whose accounting of billions of dollars in tribal assets during the 1990s was described by a top trust official recently as disappointing -- revealed that it destroyed numerous documents about Enron's finances. Criminal charges could be brought, asserted Rep. Billy Tauzin (R-La.), whose House Energy and Commerce Committee is one of several Congressional panels investigating the company.

President Bush moved to contain the damage, saying a full inquiry into Enron would be conducted. He said protection of employees, whose retirement and investment plans fell into ruin while top executives were able to sell of their stock, was of the highest priority.

Enron filed for bankruptcy in New York court on December 2, the largest in history. A number of investors, including the Southern Ute Tribe of Colorado, want the case moved to Houston.

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Get the Story:
Enron Asked for Help From Cabinet Officials (The Washington Post 1/11)
Enron Executives Contributed to Ashcroft Campaigns (The Washington Post 1/11)
Data Destruction Intensifies Andersen's Woes (The Washington Post 1/11)
Firm's Saga Could Dog Bush in Election Year (The Washington Post 1/11)
Timeline of Enron's Collapse (The Washington Post 1/11)
Enron Contacted 2 Cabinet Officers Before Collapsing (The New York Times 1/11)
Enron Auditor Admits It Destroyed Documents (The New York Times 1/11)
Bush to Look at Employee Risks, but Experts Say Solutions Won't Be Easy (The New York Times 1/11)
A Familiar Capital Script (The New York Times 1/11)
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Relevant Links:
Enron - http://www.enron.com/corp

Related Stories:
Enron subject of criminal investigation (1/10)
Cheney met with failed Enron Corp. (1/9)
Colo. tribe an Enron investor (1/7)