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In 1998 the World Bank notified the Bolivian government that it would
refuse to guarantee a $25 million loan to refinance water services in
the Bolivian city of Cochabamba unless the local government sold its
public water utility to the private sector and passed on the costs to
consumers. Bolivian authorities gave the contract to a holding company
for US construction giant Bechtel, which immediately doubled the price
of water. For most Bolivians, this meant that water would now cost more
than food. Led by Oscar Olivera, a former machinist turned union
activist, a broad-based movement of workers, peasants, farmers and
others created La Coordinadora de Defensa del Agua y de la Vida (the
Coalition in Defense of Water and Life) to deprivatize the local water
system.

In early 2000 thousands of Bolivians marched to Cochabamba in a showdown
with the government, and a general strike and transportation stoppage
brought the city to a standstill. In spite of mass arrests, violence and
several deaths, the people held firm; in the spring of that year, the
company abandoned Bolivia and the government revoked its hated
privatization legislation. With no one to run the local water company,
leaders of the uprising set up a new public company, whose first act was
to deliver water to the poorest communities in the city. Bechtel,
meanwhile, is suing the government of Bolivia for $25 million at the
World Bank's International Centre for the Settlement of Investment
Disputes.

He says he had no clue the stock would tank.
About the details he is still evasive.
Though "on the board but clueless" could sound lame,
With Bush, a clueless claim sounds quite persuasive.

Last week, while Bush spoke to Wall Street about corporate malfeasance, he was beset by questions about the timing of his sale of stock twelve years ago while he served as a director of Harken En

For President Bush to pretend to be shocked that some of the nation's top executives deal from a stacked deck is akin to a madam feigning surprise that sexual favors have been sold in her establi

Dead ends, new beginnings--the industry's twenty-five-year crisis
continues.

Attempts to organize are squelched by a flying column of
unionbusters.

Speech to The Democratic National Committee--Western Caucus
Saturday, May 25, 2002
Seattle, Washington

"Death Star," "Get Shorty," "Fat Boy"--the revelation of Enron's trading
schemes in California have turned the Enron scandals virulent again.
Just when the White House thought the disease was in remission and
relegated to the business pages, the California scams exposed more of a
still-metastasizing cancer of corporate corruption.

Internal Enron memos reveal that it and other companies preyed on
California's energy crisis, helping to manufacture shortages and using
sham trades to drive up prices. The somnambulant Federal Energy
Regulatory Commission (FERC)--headed by Pat Wood III, "Kenny Boy" Lay's
handpicked chairman--decided that its initial finding of no market
manipulation in California was inoperable and opened a broader
investigation. With stocks plummeting and lawsuits piling up, CEOs at
Dynegy and CMS Energy resigned, as did heads of trading at Reliant
Resources and CMS.

The Bush Administration was directly implicated as the White House's
Enron stonewall began to collapse. A reluctant Joseph Lieberman,
chairman of the Senate Governmental Affairs Committee, finally got
sufficient spine to issue subpoenas, stimulating the White House to
release more documents about its contacts with Enron. These showed that
the White House had lied to House investigators when it reported only
six contacts between Enron officials and the White House energy task
force. The incomplete White House submissions now admit four times that
number, with more surely to come.

Lay and the Enron executives were pressing Vice President Cheney not
only to influence the President's energy policy but also to oppose price
controls on electricity in California, even as they were gaming the
market. Cheney and Bush responded to their leading contributor by
publicly scorning price controls, while White House aides encouraged the
energy industry to organize an ad campaign in California against
controls. Cheney surely felt comfortable with Enron's shady side: As we
recently learned, when he was CEO of Halliburton and its profits were
declining, his accountants--the ubiquitous Arthur Andersen--suddenly
started counting as revenue a portion of payments that were in dispute,
without informing investors of the change.

The Administration has painted Enron as a business, not a political,
scandal. Now it is apparent that the scandal is political and
economic, showing the problems of a system with too little
accountability and too much corporate influence both in the White House
and on Capitol Hill. And with the United States having to import more
than $1 billion a day in capital to cover trade deficits, the scandals
are already a drag on investment, growth and jobs.

Neither the Administration, Congress nor the business lobby has yet
awakened to the perils. Bush retains as Army Secretary former Enron
executive Tom White, who claims no knowledge that his subsidiary was
involved in the sham trading schemes (although his own bonuses were
undoubtedly based in part on the inflated revenues that resulted). Big
Five accounting firms lobbyist Harvey Pitt remains head of the SEC, even
after repeatedly traducing elementary ethics by meeting privately with
representatives of companies under investigation by his agency. Wood
remains the head of FERC, even as legislators call on him to recuse
himself from the California investigation. Bush and House Republicans
continue to resist sensible reforms. The business and accounting lobby,
in a victory of ideology over common sense, has mobilized against
anything with teeth.

Beltway conventional wisdom dismisses the political fallout of the Enron
scandals. But Americans are furious at executives who betray their
workers and mislead small investors while plundering their companies.
Thus far their anger hasn't fixed on Washington, but it may if no one is
held accountable. It's long past time for Senate Democrats to rouse
themselves, demand the heads of White and Pitt and launch a scorching
public investigation of the Administration's complicity with Enron in
California and elsewhere. Any real reform will require displacing Enron
conservatives, with their mantra of "self-regulation" and their corrupt
politics of money. With the revelations continuing and elections coming
up, progressives should be mobilizing independently to name names,
exposing those who shield the powerful. If voters learn who the culprits
are, Enron may end up reflecting the "genius" not of capitalism but of
democracy--the people's ability to clean out the stables when the stench
gets too foul.

Now that the Enron culprits have been caught red-handed, might not the media inquire of the President whether he takes any responsibility for nearly bankrupting California by refusing to come to

Army Secretary Thomas White appears to be inching closer to becoming the
first Bush Administration casualty of the Enron scandal. Senators Dianne
Feinstein and Barbara Boxer of California have asked Attorney General
John Ashcroft to launch a criminal probe into Enron's role in
manipulating California's electricity market, after Enron memos released
by the Federal Energy Regulatory Commission showed how Enron boosted
electricity prices in California and created shortages.

People close to Feinstein and California Congressman Henry Waxman said
the lawmakers will ask Ashcroft to direct that the criminal
investigation include White and whether the unit he helped lead, Enron
Energy Services, played a part in California's two-year energy crisis.
"We believe we have evidence, based on our conversations with former
Enron employees, that Mr. White and other executives from Enron Energy
Services may have worked side by side with Enron's traders and supplied
inside information about the amount of electricity California needed,"
an aide to Feinstein said. "We believe, based on this information, that
the traders were then able to create shortages and manipulate the price
of power in the state."

Neither a spokesman for White nor for Enron returned calls for comment.
Enron is already under investigation by California Attorney General Bill
Lockyer for allegedly manipulating the price of electricity and natural
gas. White is being investigated by the FBI on the timing of his sale of
Enron stock last year and by the Inspector General's office on his use
in March of a government airplane to fly to Aspen to sign papers on the
sale of a $6.5 million house he owned, prompted by Enron-related
financial problems. Separately, he engaged in a dispute with Defense
Secretary Donald Rumsfeld over the Crusader weapons system; Rumsfeld
continued to express support for him.

Former employees of EES have come forward saying that the retail unit,
under White's leadership, played a role in California's power crisis and
that White told his staff that EES would earn millions in profits
because of the crisis. In addition, former employees are coming forward
with information about White that indicates that his involvement with
Enron's suspect accounting was far deeper that he has let on. White has
said that EES was a legitimate operation and not a house of illusory
profits.

John Olson, an analyst now with Sanders Morris Harris, recalls asking
White in 1999 how EES, a relatively small operation, could show millions
of dollars in profit with barely a shred of business. "I did not believe
Mr. White, nor any of the other Enron executives I spoke with, were
being honest or forthcoming about EES's profits," Olson said. "When I
pressed Mr. White for an answer he said, 'One word: California.'"

White told EES's sales team in 1998 that they could earn hefty bonuses
by signing energy contracts with large businesses in California to
manage their electricity needs for a substantially cheaper price than
these companies had been paying through their local utilities. But
promising customers a discount at the beginning of the contracts meant
EES wasn't earning enough money to cover what the local utilities were
charging for gas and electricity. Moreover, EES was spending much more
than anticipated setting up the infrastructure for the contracts, said
Lee Jestings, a former EES executive who worked directly with White.

Jestings said he told White that EES would actually lose money this way,
but White said Enron would make up the difference by selling electricity
on the spot market in California, which Enron had bet would skyrocket in
2000. Jestings said he continued to complain to White that the profits
declared by the retail unit were not real. "Tom told me those are the
orders," Jestings said. "He said he never questions a direct order. This
man spent thirty years in the Army and was a four-star general. His life
was based on taking orders." Jestings said he resigned from EES in 2000
because he did not agree with the way EES reported profits. He is now
working as an energy consultant.

The ex-employees, more than a dozen interviewed, said White often
clashed with Lou Pai, chairman of EES, over the company's use of
"aggressive" accounting methods to make the unit appear profitable when
it wasn't but that ultimately White agreed that EES would have to use
such methods because the unit was hemorrhaging cash right from the
start. Steve Barth, a former EES vice president of special projects who
attended meetings with White and Pai, said White's job was that of
cheerleader--he was supposed to motivate the EES sales force to show, by
any means necessary, that the retail unit made a profit. "That meant
lying to Wall Street," Barth said. "White did it, and so did I." Barth,
who transferred from EES to Enron's broadband unit in 1999 and left last
July to start a broadband firm, said his experience at the company had
been positive.

Enron reported that EES, founded in 1997, became profitable during the
fourth quarter of 1999 and had steadily rising profits every quarter
thereafter. Those reports helped send Enron's stock price to $83 by the
end of 2000, from $43 at the beginning of the year. As part of his
employment contract with Enron, White was given a small financial stake
in EES, later converted into Enron stock, which he sold for more than
$50 million.

Eventually, with Enron becoming a target of California lawmakers, White
may have decided it was time to get out. In early 2001, according to
Barth, when then-Enron chairman Kenneth Lay was under consideration to
be Energy Secretary, Lay met with George W. Bush and urged him to
appoint White as Secretary of the Army. Barth said White told him that
the California energy crisis was hurting EES and that the unit's profits
would never materialize. White "just wasn't happy with his role at the
company anymore," Barth said.

Blogs

Taking the position of former Senator Russ Feingold, former Utah governor positions himself as the anti-bankster candidate -- and a serious alternative to over-the-top corporatism of Romney, Gingrich and their kind.

November 30, 2011

A federal judge’s ruling in an SEC settlement with Citigroup might strengthen regulation of the financial sector.

November 29, 2011

Rupert Murdoch meets his stockholders Friday amidst rising scrutiny from investors—and perhaps from the Justice Department.

October 19, 2011

From Salem to Salt Lake City, Occupy Wall Street is gathering energy and bursting outward.

October 13, 2011

A new report on excessive CEO salaries underscores the need to restore sanity to pay equity and corporate taxes.

August 31, 2011

Following an SEC review of its downgrade decision, Standard & Poor’s is now facing a Department of Justice probe and lost business from several municipalities. 

August 19, 2011

Revelations about American Legislative Exchange Council project to link corporate interests with state legislators to impose an agenda that protects polluters, privatizes public education, breaks unions and undermines democracy raises questions about whether group is “evading lobbying disclosure laws,” violating tax breaks designed to encourage charitable contributions and doing “an end-run around state ethics laws.”

July 15, 2011

Recently-released WikiLeaks cables reveal that Haiti's self-appointed guardians—the US, EU and UN—supported an election in the country despite obvious evidence that it was severely flawed.

June 24, 2011

Liza Featherstone explains how Wal-Mart systematically discriminates against women, resists unionization and underpays its workers.

June 21, 2011

Wall Street is poised to lose a major battle in Washington today—but only because another enormous industry chose to take it on.

June 8, 2011