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Justice asks White House to keep Enron records

WASHINGTON (CNN) -- The Justice Department has asked the White House to retain all documents related to Enron since January 1999, two years before President Bush took office, CNN has learned.

The Bush administration has come under fire in recent weeks for its ties to Enron, the energy giant which filed for Chapter 11 bankruptcy in December -- the largest such filing in U.S. history. But Friday's request from the Justice Department brings the investigation back to the Clinton administration.

In a letter dated Friday to White House Counsel Alberto Gonzales, Deputy Attorney General Christopher Wray said, "We believe that documents in the possession of the White House, its staff and employees may contain information relevant to our investigation into the financial conditions of Enron and statements made by Enron employees and agents relating to its financial condition and business interests."

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The letter then requested the Bush administration preserve and maintain "all documents, electronic records and correspondence, computer records and storage devices, notes and memorandum" related to Enron. At this time, Wray said the Justice Department is "only requesting" the retention of records.

Gonzales immediately sent out an "administrative alert" directing all White House staffers to comply with the Justice Department's request, a senior administration official said.

In addition to the Justice Department and FBI, several congressional committees and Securities and Exchange Commission are investigating Enron's swift collapse.

Enron linked to White House

Enron and its executives were among the largest donors to Bush's 2000 presidential campaign, and some Democrats have questioned whether the Houston-based company had undue influence on the White House, especially in the formation of its energy policy.

Vice President Dick Cheney, like Bush a former oil executive, has been a favorite target for critics.

He told lawmakers last week that he met with the company's embattled ex-CEO Kenneth Lay six times last year. This week, the General Accounting Office, the investigative arm of Congress, announced its intention to sue the White House records from the energy task force Cheney ran last year.

And last month, administration officials admitted Cheney asked Indian opposition leader Sonia Gandhi last June about a multimillion-dollar debt owed to Enron from a major energy project in India. The White House downplayed the matter, claiming it was only mentioned briefly, it is not unusual for the government to raise major U.S. business interests and that top Clinton administration officials had also asked India about the project.

Under intense pressure from Democrats, on January 25 Bush the administration's Office of Management and Budget ordered all government agencies to review any agreements with Enron or its former accounting firm, Andersen LLP.

The review affects about 100 contracts valued at more than $70 million in the last fiscal year.

While Bush has not mentioned Enron by name in recent speeches, he did announce proposals to protect employees' 401(k) and pension plans in a speech Friday in West Virginia. Thousands lost their pensions and life savings in Enron's downfall, which began last fall when the firm acknowledged several hundred million dollars of previously undisclosed liabilities.

"If you're corporate America, you're responsible for making sure you reveal all your assets and liabilities to your shareholders and employees," Bush said.