Enron investigators start talking perjury

Associated Press

WASHINGTON — Leaders of Congress’s investigations of the Enron collapse said flatly Sunday they didn’t believe the sworn testimony of former Enron chief executive Jeffrey Skilling, and one suggested he could face formal accusations of perjury.

After an intense week of hearings, lawmakers say they have strong evidence of illegal activity surrounding the failure of the energy-trading company, which slid into the biggest bankruptcy in U.S. history on Dec. 2.

A House investigative panel heard hours of conflicting testimony Thursday from Skilling, who was chief executive officer of Houston-based Enron, and other top company officials. Skilling said he knew few details of the complex web of partnerships that brought down Enron, and he insisted he was never warned of problems with the arrangements.

Rep. Jim Greenwood, R-Pa., chairman of the House Energy and Commerce subcommittee, and Rep. Billy Tauzin, R-La., who heads the full committee, told CBS "Face the Nation" that they didn’t believe Skilling.

"He was totally incredible," Tauzin said. "This is the guy who was in charge of the corporation. … I’m afraid he may have put himself in some legal jeopardy as a result."

Asked whether Skilling could face a perjury indictment by federal prosecutors, Tauzin replied, "That could happen. I mean, you can’t come to Congress … take that oath as he did in front of Jim Greenwood, and then not tell the truth.

"He could have some real problems."

Skilling’s attorney, Bruce Hiler, said later he was "shocked at the unsupported charges being leveled at our client."

Tauzin and Greenwood cited instances in which Skilling said he couldn’t recall details of key conversations that subordinates testified they had with him concerning Enron’s finances. In one, Enron’s new president and chief operating officer, Jeffrey McMahon, said he was transferred out of his job as treasurer shortly after he complained to Skilling about the partnerships in a 30-minute meeting in March 2000.

Hiler, in a statement, disputed Tauzin’s assertions that Skilling’s administrative assistant had provided information that undermined his version of events.

Hiler did not address, however, the statements by other Enron employees that conflicted with Skilling’s testimony.

Even his mother questioned what Jeffrey Skilling, former chief executive officer of Enron, told Congress last week.

"When you are the CEO and you are on the board of directors, you are supposed to know what’s going on with the rest of the company," Betty Skilling told Newsweek magazine.

"You can’t get off the hook with me there," she said. "He’s going to have to beat this the best way he can."