Group Asks Lieberman to Remove Himself From Enron Probe
By Justin Hill
WASHINGTON, Jan. 22–A Virginia-based watchdog group is urging Sen. Joseph Lieberman (D-Conn.) to recuse himself from any investigation into the probe of Enron Corp.’s bankruptcy by the senate committee he chairs because the senator received contributions from one of the failed energy company’s creditors.
In a letter dated Jan. 15, the president of the National Legal and Policy Center Peter Flaherty asked the senator to remove himself from any investigation by the Senate Governmental Affairs Committee, which is expected to hold a hearing Thursday to inquire whether federal agencies could have done more to prevent Enron’s collapse. Lieberman received $112,546 from Citigroup Inc. from 1997-2002, making the company the senator’s largest contributor for the past five years, according to the Center for Responsive Politics.
“In order to assure the public of the integrity of the Senate investigation and to avoid the appearance of a double standard, I hope you agree with me that recusing yourself is the only appropriate action for you to take,” Flaherty wrote.
Enron doled out $35,000 last year to the New Democrat Network, a political action committee founded by Lieberman in 1996, according to Leslie Phillips, a spokeswoman for the senator. Enron’s embattled auditing firm Arthur Andersen gave $12,500 to the political action committee last year, Phillips said.
“[Lieberman] rejected the call to recuse himself,” said Leslie Phillips, a spokeswoman for the senator. “He’s been very tough on Enron. He intends to conduct a very aggressive, through and thoughtful investigation. áWe are not looking into anything having to do with Citigroup. á He has no official connection to [the New Democrat Network].”
Lieberman announced earlier this year that investigations into the collapse of Enron will be the one of the committee’s priorities in 2002.
Meanwhile Sen. Phil Gramm (R-Texas), who is one of the largest recipients of Enron campaign contributions, removed himself from the Congressional investigations of the Houston-based company yesterday as Congressional investigators were expected to issue subpoenas for four senior officials of Arthur Andersen last night.
Questions about possible conflicts of interest between Lieberman and the Enron investigation surfaced after reports showed that Lieberman’s former chief of staff Michael Lewan contacted Lieberman’s office in June while he was working as lobbyist for Enron.
“Nothing inappropriate happened there. á It’s not going to affect any conduct at the hearing. á I’m committed to conducting an investigation here that’s comprehensive, aggressive and fair,” Lieberman said.
Lewan, who served as the senator’s top aide from 1989-1992and remains friends with Lieberman, contributed $1,000 to Lieberman in 1998, according to Federal Election Commission records.
“Nothing that was discussed with the Senator’s staff had anything to do with the bankruptcy [of Enron],” said Lewan. “It was about legislative issues.”
Published in The Hour, in Norwalk, Conn.
