Associated Press
WASHINGTON – Former Enron chief executive Jeffrey Skilling insisted to skeptical lawmakers Thursday that he knew of nothing improper about the complex web of partnerships that brought down the company, draining the savings of millions of investors and employees.
Four of Skilling’s former colleagues at the energy-trading conglomerate remained silent and refused to testify, invoking their Fifth Amendment privilege.
Back in August, when he resigned his post, “I did not believe the company was in any financial peril,” Skilling said, testifying under tough questioning in his first public accounting of the collapse. “I absolutely, unequivocally thought the company was in good shape.”
The company’s financial statements, “as far as I knew, accurately reflected” Enron’s condition, Skilling told the House Energy and Commerce oversight subcommittee.
He said he had no knowledge that the partnerships run by his longtime colleague Andrew Fastow, who collected at least $30 million for his efforts, were designed to conceal massive losses.
Skilling spoke after Fastow and three other current or former Enron executives declined to answer questions at the hearing, citing their constitutional right against self-incrimination. Former chairman Kenneth Lay is expected to do the same next week when he appears before two other committees that have subpoenaed his testimony.
“It was my understanding that the purpose of the transactions was to provide a real hedge” – locking in profits from technology investments, Skilling said.
Skilling, who resigned before Enron’s troubles became public, insisted he didn’t know the details of the partnerships that concealed hundreds of millions of dollars in debt and overstated the company’s profits by more than $1 billion over several years.
Skilling also said he could not recall key events under close questioning by lawmakers. Nineteen times during his testimony his answer was “I don’t recall” or something similar.
He said he didn’t remember, for example, hearing Fastow tell an October 2000 board of directors meeting that Skilling would approve all the partnerships.
“I was in and out of the meeting” and “I don’t recall if I was there specifically at the time Andy” made the comments, he said.
Associated Press
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