Stepping up its criminal
investigation of Enron Corp.'s collapse, the US Justice Department told President George W. Bush's staff last night not to destroy any documents related to the bankrupt energy trading company, Mr Bush's biggest political contributor.
The White House said it would comply with the request, which calls for staff to retain all written and electronic notes, letters and files related to Enron's financial condition and business interests since January 1, 1999. Enron has made some $623,000 in contributions to Bush's campaigns since 1993.
"We believe that documents in the possession of the White House, its staff and employees may contain information relevant to our investigation," Christopher Wray, principal associate deputy attorney general, said in a letter to the White House counsel's office. Officials said the letter applied to the White House and other federal agencies.
The Justice Department also asked the White House to retain notes and memos stemming from contacts with anyone who works or worked for the Houston-based company - from top Enron executives to those who may have acting unofficially or indirectly on its behalf.
A Justice Department task force and the FBI have been conducting a criminal investigation into Enron's collapse, in which thousands of workers lost their jobs and pension savings amid allegations that the company misled investors about its accounting practices. Enron's December 2 bankruptcy was the biggest in US history.
The Bush White House has close ties to Enron and its former chairman, Kenneth Lay.
Last autumn, Mr Lay called Treasury Secretary Paul O'Neill and Commerce Secretary Don Evans, Bush's 2000 campaign manager, to warn them of Enron's mounting financial problems.
Enron President Lawrence "Greg" Whalley also spoke repeatedly with Treasury Undersecretary Peter Fisher in late October and early November, seeking help for the beleaguered company.
On Thursday the White House disclosed that Mr Lay had recommended candidates to fill top government posts, including Pat Wood, now chairman of the Federal Energy Regulatory Commission (FERC).
"Enron made contributions to a lot of people around Washington, D.C., and if they came to this administration looking for help they didn't find any," Mr Bush said this week in his administration's defense.
The Justice Department's request would cover some documents from the Clinton administration, which left office in January 2001.
"All documents relating to these subjects should be preserved, even if there would be a question whether the document would be a presidential or federal record or even if its destruction might otherwise be permitted," Mr Wray wrote.
"At this time, we are only requesting that you ensure the retention of these records," he added.
The Justice Department had no comment.