WASHINGTON (voa) – The U.S. Senate Commerce Committee is expected to formally summon former Enron chairman Kenneth Lay to testify about the collapse of the giant energy trading firm.
The committee is to meet Tuesday to vote on whether to issue a subpoena. However, even if subpoenaed, Mr. Lay may invoke his constitutional right not to provide potentially self-incriminating testimony.
Mr. Lay canceled a committee appearance scheduled for Monday. His lawyers said statements by some senators suggested the hearing would be prosecutorial and unfair.
Mr. Lay also resigned from Enron’s board of directors. He had stepped down earlier this month as chairman and chief executive officer.
Committee Chairman Ernest Hollings, a Democrat, called for a special prosecutor to investigate Enron, citing what he called close ties between the company and the Bush administration. But the administration says there is no reason to appoint a special counsel. It says Enron has close ties to both political parties and the investigation should not be a partisan issue.
In another development, a member of the Enron board of directors who authored a recent investigative report on the company’s finances told a Congressional panel its collapse was caused by “a systematic and pervasive attempt” to inflate profits and hide losses. William Powers, who is also dean of the University of Texas School of Law, called his committee’s findings “appalling” and said Enron’s problems started with top management.
The chairman of the U.S. Securities and Exchange Commission, Harvey Pitt, told the Congessional panel that his agency was working toward reform of disclosure and financial reporting requirements, the role of auditors, and the oversight of accounting firms.
