Enron Gave $100,000 to Democrats Before It Fell

A week before filing for bankruptcy protection, energy giant Enron Corp. donated $100,000 to the Democratic Party committee that helps Senate candidates, campaign finance reports show.

The company, which had given almost 90% of its political funds to Republicans this year before the Democratic donations, also has hired high-profile Washington lawyer Robert S. Bennett, whose past clients include President Clinton.

“Donations of this type reflect certain political realities, which are followed by all major corporations,” Bennett said Wednesday in explaining Enron’s $50,000 checks on Nov. 25 and Nov. 26 to the Democratic Senatorial Campaign Committee.

Enron filed for Chapter 11 bankruptcy protection on Dec. 2.

Tovah Ravitz-Meehan, a spokeswoman for the Democratic Senate fund-raising committee, said the head of the organization, Sen. Patty Murray (D-Wash.), has asked that Enron’s money be given to a charitable organization helping laid-off Enron workers. She said the charity hasn’t been chosen.

“It wasn’t right to keep it, and it wasn’t right to give it back to Enron, so we’re looking for charitable options,” Ravitz-Meehan said.

Congressional Republicans and Democrats alike have heaped criticism on Enron, accusing the company of burning stockholders who were unaware of the company’s failing condition, throwing thousands of people out of work and decimating retirement accounts.

Earlier this week, Democrats on the Senate Commerce Committee demanded that the Federal Trade Commission investigate why company executives were allowed to cash out their stock while other employees were prevented from selling the company’s sinking shares in their retirement accounts.

Bennett said there was no connection between congressional inquiries and the donations.

“It is very unfair to draw any improper motive based on these contributions,” he said. “While the money was given in November, a large portion of it had been committed as far back as September.”

Bennett will represent Enron in dealing with Congress, the news media and investigators.

He represented Clinton in the sexual harassment lawsuit filed by Paula Corbin Jones and was the Senate Ethics Committee’s counsel in the investigation of five senators with ties to a failed savings and loan operator.

Before the contributions to the Democrats, Enron this year had contributed $173,000 to candidates and parties, with almost 90% going to Republicans.

The contributions were compiled by the Center for Responsive Politics, an organization that tracks campaign finance issues.