Enron crisis looms over White House

Cheney told lawmakers he would not release additional information on his energy task force.

(CNN) -- Enron's hiring of a key Republican strategist and the secrecy surrounding the makeup of the White House energy task force are raising new questions about Enron's influence on the Bush administration.

The head of the General Accounting Office, the investigative arm of Congress, told CNN the agency planned to sue Vice President Dick Cheney next week unless he releases additional information about the energy task force he ran last year.

The Democratic National Committee said it was considering filing a complaint with the Federal Election Commission over whether senior Bush adviser Karl Rove arranged to have Enron hire key Republican strategist Ralph Reed in 1997, while Bush was considering a run for president.

The Bush administration's Office of Management and Budget asked Friday for a review of all government contracts involving Enron and its former accounting firm, Andersen LLP. The review involves 100 contracts valued at more than $60 million.

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In addition to several congressional committees, the Justice Department and Securities and Exchange Commission are investigating Enron's swift collapse and its decision to file for Chapter 11 bankruptcy protection December 2, 2001 -- the largest such filing in U.S. history.

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.

DNC questions Reed's hiring

Reed, former head of the Christian Coalition and now chairman of the Georgia Republican Party, said he checked with the Enron executive who hired him in 1997, and the executive said he had never spoken with Rove about Reed's hiring. (Full story)

The executive, Reed said, checked with two others involved in his hiring and they too said they had never spoken with Rove.

The Democratic National Committee said Enron's hiring of Reed might have been an illegal corporate contribution to the Bush campaign.

Reed denied reports that Bush adviser Karl Rove engineered his hiring by Enron.

"We are considering the option of filing an FEC complaint against the Bush campaign to question whether Enron was a subsidiary of the Bush campaign by paying Ralph Reed to do political work for President Bush," said Jennifer Palmieri, spokeswoman for the DNC.

Under federal election laws, a campaign for federal office may not accept contributions or "anything of value" from a corporation unless given through a political action committee. Campaigns must disclose all contributions to the FEC.

GAO targets Cheney

The General Accounting Office said it would sue the vice president to access information about the energy task force he headed last year.

GAO Comptroller General David Walker said his agency wants to know several things about the closed-door meetings, including the names of the energy executives who attended, when and where the meetings were held and how much they cost.

Cheney, who has shared information only as it relates to Enron, told Senate Republicans last week he did not intend to release more information.

A former oil executive, Cheney told lawmakers he met with Enron officials, including then-CEO Kenneth Lay, six times last year, CNN learned.

For months the White House has said there is no reason to provide details of the sessions, accusing critics of engaging in a "fishing expedition."

White House press secretary Ari Fleischer said constituents have the right to meet with their government without being scrutinized. (Full story)

OMB orders review of Enron ties

The White House Office of Management and Budget on Friday ordered all government agencies that have contacts with Enron or its former accounting firm, Andersen LLP, to review those agreements to determine if the companies are performing their duties.

The review affects about 100 contracts valued at more than $60 million in the last fiscal year.

OMB Director Mitch Daniels cited "recent press reports [highlighting] potential irregularities" -- including document shredding and manipulative accounting practices -- and asked the General Services Administration to launch its review "on behalf of all federal agencies doing business" with the two companies. (Full story)

Ex-Enron exec committed suicide

The Harris County, Texas, medical examiner ruled Saturday that former Enron executive J. Clifford Baxter died of a self-inflicted gunshot wound to the head, as was suspected.

Congressional investigators intended to interview Baxter next week and had the impression from his lawyer that he would cooperate, according to a congressional source.

The energy giant's former vice chairman was considered a "bit player" in the Enron probe, but "someone told us he had information that would be useful," the source said.

Police found Baxter dead in his 2002 Mercedes Benz early Friday, along with a .38 caliber revolver registered to Baxter and a suicide note, the contents of which they did not disclose. There were no signs of foul play, investigator Pam Johnson told CNN.

Baxter, 43, resigned from Enron last May, reportedly unhappy with the company's business practices, including its partnership with a company called LJM.

Friends told CNN he had been disappointed in recent days, saying he was "stressed" because he had been named in lawsuits filed by shareholders against the company. (Full story)

Enron close to naming new CEO

Enron edged closer Saturday to replacing Lay, who resigned Wednesday, narrowing the list of candidates to two semifinalists, a source familiar with the search told CNN.

The company's board of directors winnowed the field in a meeting Saturday, the source said.

The front-runner was Stephen Cooper, a corporate turnaround specialist with the New York-based consulting firm Zolfo Cooper. The other candidate is a male executive, but no other details were immediately available.

An announcement could be made within three to four days, the source said, but another source said the decision could come as early as this weekend.