M E M O R A N D U M
TO: Interested parties
FM: Jeff Flint, Senior Strategist, Simon for Governor
DT: May 16, 2002
RE: Gray Davis and Enron
5 QUESTIONS GRAY DAVI$ NEEDS TO ANSWER ABOUT ENRON AND CALIFORNIA’S POWER CRISIS
1.WHY DOES GRAY DAVI$ BELIEVE ENRON DEALT HONESTLY WITH CALIFORNIA? In the now infamous San Diego Union-Tribune Editorial Board on March 8, 2002, Gray DAVI$ – recipient of $120,000 in Enron campaign contributions -- gave Enron a big thumbs up. “Surprisingly, DAVI$ offered a pat on the back to Enron, the bankrupt Houston power trader accused of fraud. ‘Enron was the best of the lot,’ he said. “They dealt with us more honestly.’” (emphasis added). Think we’ll see this quote again (and again) in the campaign?
2.WHEN IS GRAY DAVI$ RETURNING HIS ENRON CAMPAIGN CONTRIBUTIONS? Given that the governor has repeatedly vilified Enron in the press for waging war against California, when can the people of Californian expect that Gray DAVI$ will return the $120,000 in campaign cash he has taken from Enron?
3.WHEN WILL GRAY DAVI$ FIRE HIS OWN HIRED ENERGY PRICE GOUGERS? The governor and his staff have stated that there were good players and bad players in the energy crisis, and produced a list of the “gougers” who may have manipulated California’s markets. What the governor failed to mention was the fact that his handpicked chief energy advisor, S. David Freeman, was one of the biggest gougers in California. During the first 18 months of the 2000-2001 energy crisis, the Freeman-led Los Angeles Department of Water and Power made an extra $200 million. The United States Congress should add Mr. Freeman and Mr. DAVI$’ role with Enron CEO Ken Lay into their investigation. In addition, the criminal investigation called for by Senator Barbara Boxer should also include Freeman, Michael Peevey (who played a central role in the crisis but filed no conflict of interest statement), Vikram Budhraja and Governor DAVI$ himself. What was the role of senior DAVI$ administration officials in this crisis and did any of them profit personally? It certainly appears that Governor himself has profited to the tune of $120,000 in Enron campaign cash.
4.WHEN WILL GRAY DAVI$ DISCLOSE HIS conversations WITH KEN LAY? What did DAVI$ and Enron CEO Kenneth Lay talk about in repeated telephone conversations the two men had during the height of California’s energy crisis, (as disclosed by investigative journalist Lowell Bergman), while the governor was actively soliciting money from Enron to help fund Democratic campaign efforts?
5.WHEN WILL GRAY DAVI$ DISCLOSE ALL HIS STAFF ENERGY CONFLICTS? Does anyone else from the governor’s staff have any potential insider trading issues similar to those surrounding Press Secretary Steve Maviglio, who the Los Angeles Times called upon last year resign or be fired for his actions seeking personal financial gain during the state’s energy crisis?
Dan