- DALLAS (UPI) - Former Enron chief executive Kenneth Lay's contacts with
President George W. Bush date back to 1994 before he became governor of
Texas, The Dallas Morning News reported Thursday.
- Lay wrote Bush shortly after he defeated
Democrat Gov. Ann Richards in 1994, urging him to name Pat Wood to the
Texas Public Utility Commission, according to a letter obtained by the
newspaper. Last month, Bush told reporters he "got to know" Lay
after being elected governor and described him as a Richards supporter.
- Wood, who Lay called qualified to carry
out the "new thinking" needed on the commission, was appointed
by Bush three weeks after taking office. Lay was a top campaign contributor
to Bush.
- After Bush was elected president, Lay
urged him to name Wood to the Federal Energy Regulatory Commission. The
president appointed him to that post in August.
- White House spokeswoman Jeanie Mamo said
the appointees suggested by Lay were qualified for the posts and received
support from other people.
- "These were very qualified individuals
who had a lot of support," she said. "They were chosen based
on their qualifications and their experience."
- In the 1994 letter to Bush, Lay opened
with the greeting, "Dear George," and described Wood as "best
qualified to provide" what he termed "new thinking" on the
utility commission. Wood is an advocate of market-oriented regulation supported
by Enron, the News said.
- |energy deregulation to Texas this year.
As governor, Bush pushed for deregulation and he won praise from Lay for
his efforts.
- Lay also lobbied Bush about Texas laws
limiting lawsuits against businesses, calling the state's tort system "the
laughing stock of the country." He said it could force some large
business to leave Texas. As governor, Bush successfully won legislation
that limited lawsuits against businesses.
- Since 1994, Lay has recommended other
appointments to Bush and his successor, Republican Gov. Rick Perry, but
the recommendations have not always been followed. Both Bush and Perry
have received campaign contributions from Enron executives.
- Enron filed for Chapter 11 protection
Dec. 2 in the nation's largest bankruptcy. About 4,500 workers lost their
jobs and their savings, and several investigations are being conducted
by state and federal agencies.
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All rights reserved.
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