November 9, 2001
Caught in a swarm of controversy over questionablebusiness deals and faulty financial statements that have caused its stock price to plummet, energy giant Enron announced this week that the company could be sold to rival Dynegy, signaling the demise of one of the country’s biggest political contributors–and one of the most generous donors to President Bush.
The announcement comes almost a year to the day after an election in which Enron contributed more than $2.4 million in individual, PAC, and soft money contributions to federal candidates and parties, ranking it among the top 50 organizational donors in the 1999-2000 election cycle. The company’s contribution total for the 2000 elections more than doubled its political donations in each of the two previous election cycles.
Enron has already contributed nearly $173,000 to candidates and parties so far this year, almost 90 percent to Republicans. Since the 1989-90 election cycle, Enron has made nearly $5.8 million in campaign contributions, 73 percent to Republicans. (Click here for a look at Enron's total giving.)Earlier this year, Enron was one of the country’s 10 largest companies and the leading energy broker in the United States. But in recent weeks the Houston-based energy trading company has come under fire for entering into business partnerships that presented possible conflicts of interest for several Enron executives. The Securities and Exchange Commission has opened a formal investigation into those partnerships.
The federal government’s involvement could create a quandary for President Bush, who raised nearly $114,000 in PAC and individual contributions from Enron in 1999-2000, making the company one of his biggest donors. Enron also donated $100,000 to the Bush/Cheney inaugural gala in January, a contribution that was matched by Enron’s chairman and chief executive, Kenneth Lay, and his wife. The Lays have contributed a total of almost $883,000 to candidates and parties since 1989, of which 90 percent went to Republicans. They are by far the largest political contributors among Enron employees. (Click here for a look at Enron's biggest individual givers.)
Lay is a longtime friend of the president and was one of Bush’s top contributors during the presidential election and two gubernatorial campaigns in Texas. Lay, listed by the Bush/Cheney campaign as a Pioneer who raised at least $100,000 for the election, reportedly has been one of the administration’s closest advisors on energy policy since Bush took office.
Enron hopes to draw on close relationships with a number of elected officials for help during its current crisis. The company spent $2.1 million lobbying Congress and the White House in 2000, an increase over the $1.9 million it spent on lobbying in 1999. Enron has contributed to the campaign accounts of 71 current senators and 188 current members (43 percent) of the House.
Not surprisingly, the top recipients of Enron’s contributions among current members of Congress are all from Texas. Sens. Kay Bailey Hutchison (R) and Phil Gramm (R) lead the list of Senate recipients since 1989. The seven biggest House beneficiaries of Enron’s giving since 1989 are also from Texas. They are led by Democratic Rep. Ken Bentsen.Click here to see:
Enron's total contributions dating back to 1989.Enron's top individual donorsEnron's contributions to members of Congress.Enron's contributions to presidential candidates
