Enron gave to those in charge of inquiry

Members of a House committee say campaign contributions won't influence their look at pension fund losses.

©Associated Press
February 27, 2002

TALLAHASSEE -- Nine of the 14 members of a House committee investigating Florida's pension fund losses in the Enron scandal have received campaign contributions from the company or a subsidiary.

Members of the Select Committee on Oversight and Accountability for Florida's Pension Fund say the contributions -- all coming before the energy trading company's collapse -- won't prevent them from aggressively scrutinizing the impact of Enron on the state and its retirees.

Several said they didn't know they had gotten Enron money, and some said their focus isn't on Enron anyway, but the workings of the agency that invests state money and on Alliance Capital Management, the money manager that bought Enron stock for the pension fund.

The retirement fund lost $325-million when it was forced to dump 7.5-million Enron shares as the company plunged toward bankruptcy and its stock price dropped. It was the largest loss of any state pension fund.

Florida's fund is one of several pursuing legal action against Enron to try to recoup losses. State workers will not lose any money because the pension fund guarantees benefits to pensioners.

Rep. Fred Brummer, who received a total of $1,500 in 1999 and 2000 from Enron subsidiary Florida Gas Transmission, said he often gets money from companies that want something -- and ignores it. And looking into Enron will be no different, he said.

"If any contribution prohibits you from doing your job as a state legislator you need to go home," said Brummer, R-Apopka. "You don't need to be up here if you can be bought and sold."

Rep. Dennis Ross agreed. Ross, who got three $500 checks in 2000 from Florida Gas Transmission, which operates the only natural gas pipeline to South Florida, said, "Nobody's ever come to me and said, "Hey, we gave you that contribution, you sure you want to do this?' "

Still, Ross, R-Lakeland, said he is returning the money to avoid any appearance of impropriety.

Other members of the investigative committee have received Enron or Florida Gas Transmission contributions totaling these amounts since 1995: Nancy Argenziano, R-Dunnellon, $2,000; Holly Benson, R-Pensacola, $1,000; Larry Crow, R-Palm Harbor, $1,000; Mark Flanagan, R-Bradenton, $2,000; Dan Gelber, D-Miami Beach, $500; Chris Smith, D-Fort Lauderdale, $500; and Roger Wishner, D-Sunrise, $500. No such contributions were reported to Kim Berfield, R-Clearwater; Arthenia Joyner, D-Tampa; Jeff Kottkamp, R-Cape Coral; Jack Seiler, D-Wilton Manors; or Irv Slosberg, D-Boca Raton.

Some supporters of campaign finance reform say the fact that a committee conducting an investigation involving a company that has given $10,500 to members of the committee over the years illustrates a larger question about companies attempting to buy influence in government with contributions that are legal.

"It points to the whole problem of why we need to reform the campaign financing system," said Ben Wilcox, executive director of Common Cause of Florida. "They're obviously hoping for some kind of access and influence somewhere."

Congress is in a similar situation. Members of the seven congressional panels investigating Enron's collapse have gotten more than $700,000 in campaign donations from Enron.

If House Speaker Tom Feeney wanted to appoint a committee immune from Enron money to look into the impact of the company's fall on Florida, he would have had a hard time. At least 73 of the 120 members of the House have gotten money from Enron or Florida Gas Transmission.

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