- The Washington Times - Friday, March 29, 2002

ASSOCIATED PRESS

Army Secretary Thomas White said he would resign if the investigation into the bankruptcy of his former employer, Enron, distracts him too much from his military duties.

"I thought I could do something good for soldiers and their families," Mr. White said Wednesday. "That is my focus. If I ever get to a point where that's no longer possible, it doesn't make any sense to stay when somebody else could do a better job."

Mr. White said he would resign if the Enron investigation took too much of his time, or if he felt his role in the matter had caused troops to lose confidence in his leadership.

A top Enron executive until he assumed the Army's highest civilian post last May, Mr. White denied any wrongdoing in his dealings with the company.

He said he was as surprised as the rest of the country by the energy-trading company's collapse in December, and the subsequent accusations of massive fraud.

Mr. White said he has sold all of his interests in Enron, as required by his Army position.

He said he remains part of an annuity fund for Enron retirees. However, that fund has not paid any money since Enron's collapse, and he has joined other retirees in filing a claim in the company's bankruptcy.

"I'm a big boy. I was in it," Mr. White said. "I'm not a victim. I'm not a perpetrator either."

He said he is turning over "a bunch" of military and personal documents relating to Enron to the Defense Department, which will supply them to the Justice Department investigation.

It's unclear whether those include documents related to Mr. White's role, as an Enron executive, in a 1999 deal in which the company won a lucrative contract to run the utilities on a New York state Army base.

Mr. White acknowledged frequent contacts with Enron officials during the company's collapse, but said none of those officials provided him with insider information that led to his stock sales.

Mr. White reiterated earlier statements that no one at Enron asked him to use his influence to help the company, and he did not do so. He said virtually all his conversations with former Enron colleagues "would have involved some comment or discussion relating in at least a general way to Enron's financial condition."

Mr. White's critics have said they want to know whether his conversations with Enron officials prompted him to finish his stock sales quickly, before Enron's shares hit bottom. Enron's stock hit a low of 26 cents by the end of November, Mr. White's deadline to sell. He made about $12 million from selling his Enron shares, the last of which he sold Oct. 30 at $12.86 a share.

"This is a textbook example of why we have ethics rules," the top Democrat on the House Government Reform Committee, Rep. Henry Waxman, California Democrat, said early in March. "Had Secretary White divested his holdings in a timely way, no questions would be raised about his conduct."

Mr. White also acknowledged traveling with his wife on an Army aircraft to Colorado at the beginning of March. While there he completed a house sale in Aspen, raising questions as to whether he used a military plane for personal business.

He said he was traveling outside Washington as part of the Bush administration's "continuity of government" plan, which requires some senior leaders to be outside the city in the event of a terrorist attack.

Mr. White said he also went to Dallas and Seattle on official Army business during the trip and described Colorado as a convenient weekend stopover in between.


Copyright © 2018 The Washington Times, LLC. Click here for reprint permission.

The Washington Times Comment Policy

The Washington Times welcomes your comments on Spot.im, our third-party provider. Please read our Comment Policy before commenting.

 

Click to Read More and View Comments

Click to Hide