Enron fiasco calls for major finance reforms
by Paul D. Matson, reporter

    The recent Enron Corp. bankruptcy filing has increased speculation that all businesses need stricter regulations on accounting practices.

   The failure of Enron has left thousands of people without hard-earned retirement investments.

   Florida’s teacher retirement stocks also lost millions of dollars.

   The Andersen accounting firm, entrusted with Enron’s accounts, apparently altered the books to show the financial situation was better than it actually was.

   New evidence shows documents were destroyed by Andersen’s company, even though it was known the documents might be needed in criminal and civil investigations.

   The Bush administration has always claimed the Enron disaster is not a political, but a corporate scandal, and has refused to turn over its Enron-related documents. Bush said turning over the documents would be “an encroachment of the executive branch’s ability to conduct business.”

   Vice President Dick Cheney’s refusal to say who attended meetings while the administration was developing its energy policy casts suspicion on the White House.

   The General Accounting Office (GAO), a nonpartisan investigative arm of Congress, has tried since last spring to retain these documents and says it intends to sue the White House over information about the meetings. The lawsuit would be the first filed in the GAO’s 80-year history on behalf of Congress against a federal agency or official.

   Even though Bush’s war on terrorism has pushed his approval rating to a high of 82 percent, Washington insiders believe his ratings have been hurt by the veil of secrecy over meetings with Enron and other energy corporations.

   Sixty-seven percent of Americans believe the White House is hiding something in its dealings with Enron.

   Rep. Doug Ose, R-Calif., has urged the White House to be open, give the people the information and move on.

   The longer the administration withholds information, the more White House credibility will be eroded.

   The Bush administration has stated many times individuals should be allowed to take part of their Social Security deductions and invest that money in the stock market, to be withdrawn after retirement.

   After the Enron scandal, it should be perfectly clear this private handling of retirement funds is one of the worst ideas in history.

   In 1999-2000, Enron donated more than $2.4 million to different federal campaigns through soft money, political action committees and individuals.

   Although Enron contributed heavily to many Republicans, it also gave to Democrats to hedge its bets.

   Maybe after the smoke clears, Congress will take another look at campaign finance reform.