Congressman skeptical on Skilling

February 7, 2002 Posted: 0115 GMT

NEW YORK (CNN/Money) -- A leading U.S. Congressman expressed doubts on Thursday about former Enron CEO Jeffrey Skilling's testimony on Capitol Hill, and he added that new laws may be needed to help prevent another Enron-style collapse.

Rep. Jim Greenwood, R-Pa., who appeared on Lou Dobbs Moneyline, said "it was very difficult to believe he [Skilling] was completely forthcoming with us."

The lawmaker, who also acts as chairman of the House Energy and Commerce oversight and investigations subcommittee, said the entire testimony only hinted that Skilling "knew exactly what was going on but did nothing about it."

Rep. James Greenwood (above) express doubts about Skilling's testimony and denials about the hidden debts and partnerships.

During the hearing to discuss the destruction of Enron accounting, Skilling said "contrary to the refrain in the press," he was not aware of any financing arrangements designed to conceal liabilities or inflate profitability.

Enron, once the seventh-largest company in America, is currently under investigation by the Justice Department, the Securities and Exchange Commission and nine congressional committees.

The Enron scandal has also spread concern about questionable accounting throughout Corporate America, prompting intensive congressional hearings and a raft of legislative proposals to change financial laws.

But Greenwood argued that "you can't legislate morality," adding that some people will always take advantage of others.

He said "some very bright lines have to be drawn to bring us into the 21st century for the economy we have now. We can make some very bright lines in the law."