Edition, January 23, 2002, Page 1
AICPA TURNS TO CLARK &
The American Institute
of Certified Public Accountants has hired Omnicom's Clark
& Weinstock as the Enron bankruptcy has "put an
unprecedented focus on the accounting profession and its
self-regulatory system." That's what AICPA CEO Barry
Melancon and chair James Castellano said in a Jan. 16 memo
Harvey Pitt, Securities
and Exchange Commission chairman, recommended that a new
group of outsiders should assume the watchdog role that
is currently performed by the AICPA.
Melancon and Castellano
warned members that Pitt's Jan. 17 news conference would
result in "stories in all national and trade media.
The developments over the next few weeks and months will
no doubt be rapid," they wrote. They lauded the accounting
profession's "100-year tradition of self-regulation."
Lynn Drake, an AICPA
spokesperson, told this NL that C&W was hired to gain
the expertise of Vin Weber, a partner there. Weber is a
former Republican Congressman from Minnesota and ex-board
member at AICPA. C&W's Anne Urban and Ed Kutler are
co-leads on the account.
FISCHERHEALTH ADDS CALIF.'S
FischerHealth Strategic Communications has won the Blue
Shield of California account, which serves about 2.3 million
members. More than 10 firms pitched.
The Los Angeles firm will assume media relations, corporate
communications and philanthropy duties that were handled
by BSC's eight-person staff.
Tom Epstein, VP-PA at BSC, cited FischerHealth's "effective
healthcare consumer marketing" skills in announcing
the win. The shop handles WellPoint Health Networks, Blue
Cross of California and PacifiCare Health Systems' initiative
with the American Diabetes Assn.
Roger Fischer says his firm will "create a deeper
bond and higher level of understanding between Blue Shield
and its many constituents."
GCI Group picked
up Cap Gemini Ernst & Young account, which is expected
to bill in the $2 million range. Tom Reno, GCI New York
president, is to play up the firm's "intellectual capital."...
Chlopak, Leonard, Schechter
& Assocs has been retained by embattled Andersen,
which was fired by Enron last week.
MS&L BAGS STAPLES
Staples has awarded Manning, Selvage and Lee its $1 million-plus
PR account in a competitive pitch that came down to two
MS&L, which had been doing retail PR for Staples,
will expand its portfolio to include corporate, consumer,
business-to-business and e-commerce PR, said Tom Nutile,
Staples VP-PR. He wouldn't name the other agencies pitching
Nutile said MS&L was picked because it displayed the
highest level of professionalism, has a strong Boston office
and runs a global office network.
Staples had used a number of PR firms including Hill and
Knowlton and Schwartz Communications.
Deborah Hohler, Staples PR manager, ran the search. Marie
van Luling, MS&L/Boston managing director, heads the
Staples has annual revenues of more than $11 billion.
Its 50,000 employees work in 1,400 office superstores in
the U.S., Canada, U.K., Germany, Holland the Portugal.
AFGHANISTAN'S NO. ALLIANCE
GETS PR HELP
Afghanistan's Northern Alliance Junbish Party is using Philip
S. Smith & Assocs., Washington, D.C., to make sure it
plays a leading role in the post-Taliban government.
Smith is a former Asia policy advisor for the House Republican
Research Committee and senior legislative assistant to Rep.
Don Ritter (R-Pa.).
He reports to Gen. Rashid Dostum, a former Communist who
switched sides and fought the Soviet Union after it invaded
Dostum is the former warlord who controlled the key Afghanistan
city of Mazar-e-Sharif.
Smith's firm receives about $150,000 for the work.
FRB's ROSENBAUM SETS UP SHOP
Michael Rosenbaum, who was president of The Financial
Relations Board/BSMG Worldwide, is now CEO of Rosenbaum
Advisors in Arlington Heights, Ill. He wants to counsel
agencies and companies about raising their profiles with
banks, venture capitalists or on Wall Street.
"Lifecycle" issues are also targeted by Rosenbaum,
who says he can help clients "figure out how to get
from $5 million to $10 million in revenues."
He is looking to provide counsel to agencies and companies
on a project basis.
Edition, January 23, 2002, Page 2
SPECTOR, GRAFICA BATTLE CONTINUES
The dispute between Spector
& Assocs., New York PR firm, and Grafica, Chester, N.J.,
ad agency, over the hiring of an employee of Spector by
Grafica and the loss of the $330,000 New Jersey Lottery
PR account by Spector, is continuing.
The suit was filed May
2, 2000 by Spector charging breach of contract and fraud,
among other things.
A motion by Grafica for summary dismissal of the complaint
was rejected by Judge Stephen J. Bernstein of New Jersey
Superior Court Sept. 28, 2001.
A trial by jury may take
place if agreement is not reached in an upcoming settlement
Judge Bernstein found there are "genuine issues of
fact as to all the potential claims" asserted by Spector
and denied by Grafica.
He ruled that Grafica
and Spector "clearly entered into some type of relationship
in which they jointly submitted a response" to an RFP
to provide advertising and PR services for the Lottery.
Was $330K Yearly
The PR portion of the
contract was for $330,000 yearly (plus expenses) for five
years ($1.65 million). Grafica and Spector won the account
but Spector later lost the PR portion. Grafica hired the
Spector account manager on the Lottery, Mark Devaney.
Spector started the PR
work June 1, 1999, supplying two PR pros to work on site
at the Lottery.
Devaney worked on the
account from June until Aug. 31, 1999, when he was hired
by Grafica. Spector was fired Jan. 18, 2000. The PR account
was put out for bid and the MWW Group, East Rutherford,
N.J., was hired as of March 2000.
Spector is saying that
the loss of Devaney did not hurt its ability to handle the
account but that the taking of Devaney by Grafica was part
of a larger scheme for removing the business from Spector.
Judge Bernstein said, "What bothers me is that doesn't
hiring Mr. Devaney undermine the relationship plaintiff
had with the Lottery? This was their key person."
'Not Key Person' Says Grafica
Grafica argued that Devaney
was not the key person on the account and that Shelley Spector,
president of the PR firm, was the key person.
Spector, upon the invitation of Grafica, had jointly pitched
the account for about four months until March of 1999 when
they won the account. The Lottery required that only the
ad agency's name be on the contract and that checks would
be made out to it.
The ad agency is contending
that Spector was merely a vendor and not a "partner,"
Spector's attorney said vendors normally get paid for work
on speculative pitches and Spector did not get paid for
this work by Grafica.
The ad agency's attorney
said "hundreds" of printers, graphics people and
others have contributed to Grafica pitches without pay in
the hopes of working on an account, if won.
ENRON EXEC CALLED PR 'WORST
Enron whistleblower Sherron Watkins suggested launching
a PR and IR campaign as the "worst case" scenario
in the event that the company's off-balance sheet partnerships
blew up on it. In her August letter to chairman Kenneth
Lay, Watkins also warned that stock analysts, reporters
and hedge fund managers "will be all over Enron trying
to find out the reason for the abrupt departure of president/CEO
Jeffrey Skilling after a six-month stint."
Watkins wrote: "I am incredibly nervous that we will
implode in a wave of accounting scandals... Skilling is
resigning now for 'personal reasons' but I would think he
wasn't having fun, looked down the road and knew this stuff
was unfixable and would rather abandon ship now than resigning
in shame in two years."
Watkins cited customer assurance plans, lawsuits, severance
actions and disclosure as other worst case scenarios. Her
best case scenario was to "clean up quietly if possible."
Enron filed the nation's largest bankruptcy filing in
December. It has laid off more than 4,000 workers.
The House Energy and Commerce Committee released the text
of Watkins' letter on Jan. 15.
LIBYA USES PR TO GET OFF
Libya may be dropped from the State Dept.'s list of countries
that support terrorism-thanks to a behind-the-scenes PR
campaign bankrolled by oil companies with assets there,
according to the Jan. 14 Wall Street Journal.
Libyan leader Col. Muammar Qadhafi used the Sept. 11 attacks
to renounce terrorism in an effort to show the U.S. that
he has changed his ways.
Qadhafi has offered the U.S. assistance in investigating
groups that are suspected of having ties with Osama bin
Laden's Al Qaeda network.
Libya remains a threat to the U.S. and its European allies.
The CIA reported last week that Libya has stocks of chemical
and biological weapons, and is in the market for long-range
The U.S. slapped sanctions on Libya in 1986.
Cohen Go to Bat for Libya
Conoco, Amerada Hess and Marathon have hired Ken Duberstein,
former Reagan White House chief ofstaff, to lobby on "initiatives
to protect U.S. companies' assets in Libya," according
to his registration filing.
Conoco estimates that it has lost $5 billion in revenues
because of U.S. sanctions.
The Duberstein Group works for clients such as The Business
Roundtable, General Motors, United Airlines, American Gaming
Assn. and Goldman Sachs.
Veteran Washington, D.C., lobbyist Herman Cohen, who was
Assistant Secretary of State for Africa, also has been working
to improve ties with Libya.
Cohen and Woods Int'l works for The Ghribi Foundation,
which wants sanctions on Libya lifted.
The U.K. and Saudi Arabia have urged the Bush White House
to end the sanctions to show its 'war on terror' is not
exclusively aimed at Muslim states.
Edition, January 23, 2002, Page 3
a magazine for sewing enthusiasts since 1985, published
in Newtown, Conn., by Taunton Press, is adding articles
on home decorating, machine embroidery and the wealth of
new materials, supplies and machines available in the marketplace.
a journalist and former theatrical costumer, who was just
named executive editor, has been put in charge of developing
the new content.
continue to expand the magazine's content to complement
its focus on technologies and design inspiration for garment
creation and embellishment, according to Kathleen Davis,
Taunton's editor-in-chief for Threads.
there is a resurgent need for solid information because
many Baby Boomers are returning to sewing as a creative
outlet and many others are getting into it for the first
time as they start their families and move into their first
Spier and the editorial staff will continue to search out
experts and enthusiasts in the sewing world who can share
their knowledge and experience with the growing community
author of several home decorating, garden design and cookbooks,
was most recently Taunton's senior editor for fiber arts
books and developed three upcoming books entiled "Embellish
Chic," "Sew Vintage," and "Stencil,
Stamp, Paint, Emboss."
a bimonthly magazine based in Sonoma, Calif., has
started a new TV program.
broadcast magazine made its debut on Jan. 1 on NBC-3, (formerly
KNTV), when the San-Jose-based station became the NBC network
affiliate for the San Franscico Bay Area.
will introduce viewers to the people who have made California's
wine regions trendsetters in food, wine, travel destinations
and gracious living.
visits winery cellars, restaurants, gardens, homes, inns
and gourment food sources.
who is editor-in-chief of Wine Country Living, is the program's
managing editor. He can be reached at 707/935-0111; fax:
Television is producing a new syndicated weekly report,
called "On the Weekend," for local TV stations'
will provide an overview of the major stories that moved
the financial markets and a look ahead to the upcoming week's
action and issues. The consumer-oriented report also features
new product launches.
is producer of the new show.
Santa Monica (Calif.) Daily Press has begun publishing
editions every day except on Sundays.
circulation paper was started by Dave Danforth, who has
helped start seven free daily papers since he co-founded
the Aspen Daily News in 1978. His other papers are:
The Conway Daily Sun and Berlin Daily Sun
in New Hampshire, and The Palo Alto Daily News, Berkeley
Daily Planet, and The San Mateo Daily Journal
a city of 84,000, has not had a daily newspaper to call
its own since The Outlook was closed in March 1998,
and The Los Angeles Times shut down its neighborhood
supplement that focused on Santa Monica.
Press, which is printed in Gardena, has a press run
Carolyn Sackariason is editor of The Daily Press.
Park Slope Paper,
a weekly newspaper, has begun covering news in the
Windsor Terrace, Sunset Park and Prospect Heights neighborhoods
of Brooklyn, N.Y. Three weeklies, which had been covering
these communities, were recently merged into the Park Slope
a broadsheet, is competing against The Park Slope News,
a tabloid weekly, published for many years by the Home Reporter,
which also publishes The Sunset News. Both papers
is one of about a dozen weekly papers published by the Brooklyn
Paper chain for residents of the borough. Editorial offices
for all of the publications are located at 26 Court st.
who is managing editor of the PSP, can be reached at 718/834-9350,
Latino," a syndicated weekly TV newsmagazine,
will make its New York regional debut on the Metro TV cable
channel in April.
weekly program will explore the Latino world of fashion,
culture and music.
Toribio, who will host the program, will interview well-known
and less-well-known Latino musicians, actors and cultural
executive producer Robert Rose, a former Univision exec,
is also handling syndication of a national version to debut
in October. The national version will expand on interviews
and stories that air on Metro TV and add original segments
SMITH IN LINE
TO BECOME NYFWA PRES.
of Utility Spotlight magazine has been nominated
to become the next president of the New York Financial Writers'
succeed Susan Rodetis, a freelance writer, who will join
new officers on the official ballot, which was proposed
by a committee headed by Myron Kandel, CNNfn, are: VP-Richard
Papiernmik, Nation's Restaurant News; treasurer-Brad
Finkelstein, National Mortgage News, and secretary-asst.
treasurer-Noelle Knox, USA Today.
of new officers will take place at the annual meeting, Jan.
23, 6:30 at the Marriott Marquis hotel in New York.
(Media news continued
on next page)
Edition, January 23, 2002, Page 4
NEW YORK SUN
TO DEBUT IN SPRING
The New York Sun will make its debut as a broadsheet
daily newspaper this spring, according to Seth Lipsky, who
is the paper's president/CEO and editor.
Lipsky, former editor of The Forward, an English-language
edition of The Jewish Daily Forward, said the Sun
will fill a void created by the collapse of several broadsheets
in recent decades and the move by The New York Times
to national coverage.
The Sun, which will publish Monday-Friday, will
cover New York news, including politics, business, real
estate, philanthropy, education, religion, culture, entertainment
and sports. It will have sections on such beats as shopping,
fashion, health, technology, food and travel.
Coverage will come from the Sun's own columnists
and a group of freelance op-ed contributors.
The editorial page will stand for growth, lower taxes,
and will ventilate many other important issues of reform,
Ira Stoll, who started smartertimes.com,
which offers a daily critique of The New York Times,
is managing editor of the Sun, whose headquarters
have been established at 105 Chambers st., which is adjacent
to City Hall.
The paper will be sold in all five boroughs and will be
a single copy purchase on newsstands and by home delivery.
The financial backers of the Sun include: Charles
Brunie, chairman emeritus, Oppenheimer Capital; Andrew Cader,
co-CEO and senior managing dir., Spear Leeds & Kellogg
Gov't Securities; Russell Carson, general partner, Welsh,
Carson, Anderson & Stow and chairman of Rockefeller
Univ.; Richard Gilder, partner, Gilder, Gagnon, Howe &
Co.; Roger Hertog, vice chairman, Alliance Capital Mgmt.;
Hollinger Int'l, chaired by Conrad Black; Bruce Kovner,
founder and chairman of Caxton Corp. and chairman, Juilliard
School; Joe Reich, founding investor and director of N.Y.C.
Investment Fund; Joseph Steinberg, president, Leucadia Nat'l
Corp.; Michael Steinhardt, founder of Steinhardt Partners
and chairman of Tel Aviv Univ., and Thomas Tisch, managing
partner of FLF Assocs.
Goodman Media International is handling PR for the Sun.
ABRAMS JOINS SCHOLASTIC AS
Pam Abrams was named VP and editor-in-chief of Scholastic
Parent and Family Publishing.
She will oversee all editorial content for Scholastic
Parent & Child, which reaches 6.3 million readers,
and Early Childhood Today, which goes to more than
250,000 teachers and child care directors.
Abrams will also supervise the editorial content for the
new parenting section on Scholastic.com.
Abrams, previously editorial director of eToys.com,
replaces Judsen Culbreth, who was named VP and editorial
director of Scholastic Family Custom Publishing.
68, former editor-in-chief of Modern Bride, was killed
in an auto accident near where she lived in Newtown, Conn.,
on Jan. 14.
51, will step down as managing editor of Sports Illustrated
at the conclusion of the Winter Olympics in February. He
has been SI's top editor since January 1996, and at SI for
nearly 24 years. His replacement will be named within the
next few weeks.
formerly communications director of the Florida Conservation
Assn., has joined Motor
Boating magazine as its sportfishing columnist.
57, a reporter for The Albany (N.Y.) Times Union,
died from complications following surgery to donate part
of his liver to his 54-year-old brother, a doctor.
previously editor of Florida Sportsman, was named
senior editor for Salt Water Sportsman magazine,
based in Boston.
a reporter for ABC News, who resigned as spokesman for the
New York Police Department in 1994 after accusing Mayor
Giuliani of trying to control information, was named co-anchor
of "20/20" with Barbara Walters.
Ehrich III, 61, publisher and editor of Hemmings
Motor News in Bennington, Vt., died Jan. 10.
previously with Arrow Partners, a Wall Street investment
firm, has joined Primedia's Registered Rep magazine
as editor. He is a former senior editor with SmartMoney
magazine and a columnist at Individual Investor magazine.
an editorial writer for The Wall Street Journal,
is taking a leave of absence to write a book. He will continue
to write column for Dow Jones' Opinionjournal.com.
has resigned as editor of The San Francisco Examiner.
His wife, Judy, handles PR for the San Francisco-based attorney
who is representing John Walker, an American who was captured
Cheryl Gould was
put in charge of CNBC's primetime and weekend programming.
Juan Aruego, morning news editor, and Phelps Hawkins,
afternoon news editor, have traded time slots.
has replaced Laura Lee as segment producer for "Business
was recently named business editor of Black Enterprise
Edition, January 23, 2002, Page 7
IS MIDST OF PR BATTLE
which the Israeli Navy says was carrying weapons from Iran
to the Palestinian Authority is sending PR waves rippling
throughout the Middle East as U.S. officials express concern
over an Iran-Palestinian connection. Iran called the ship's
seizure in international waters in the Red Sea a PR stunt.
radio outlet has tagged the weapons shipment found aboard
the freighter Karine-A as a "false propaganda claim"
of the Israeli government, while P.A. president Yasser Arafat
has backed off an initial denial of involvement under pressure
from the U.S. and Europe and ordered an inquiry which has
pointed to three P.A. officials who have reportedly not
was stocked with 50 tons of Iranian-made small arms, mortars,
rockets, rocket-propelled grenades and explosives.
have questioned the coincidental timing of Israel's capture
of the ship with the arrival of U.S. envoy Anthony Zinni,
as well as what Israel says is proof of the P.A.'s involvement
and the high risk of smuggling arms in the Middle East.
Way of Shipping Stockpile
Guardian points out, anyone deciding to supply weapons
from the Gulf would have to take into account not only the
effects of a successful delivery but also the very high
probability of being caught, particularly when trying to
go through the Suez Canal, where all ships are subjected
to thorough inspection by the Egyptians.
is monitored to guard against Iraqi oil smuggling and to
look for escaping supporters of Osama bin Laden, said the
Prime Minister Ariel Sharon blasted Iran's involvement,
calling the Islamic country "the center of world terror."
captain, Omar Akawi, said he was delivering the cargo to
the Palestinian Authority and was in contact with a weapons
procurement official for the P.A.
magazine reported that the ship's crew said the weapons
were loaded from boats off the Iranian coast in an operation
headed by an assistant to Lebanese militia leader, Imad
Mughniyah, whose group has close ties to Iran and is blamed
for the 1983 bombing of the U.S. Marine barracks in Beirut.
said that Israel was "infuriated" by the muted
world reaction to the weapons seizure. The Israeli government
suggested last week that the U.S. is trying to look the
other way so as not to derail efforts by Zinni to establish
involvement in the episode has also been questioned because
of strong differences between Iran and the Palestinian Authority.
and Jonathan Schanzer of the Middle East Forum dismissed
Arab news reports that the seizure of the Karine-A was an
reports that the ship was a set-up to claims that the video
of bin Laden discussing Sept. 11 was a fake and that the
attacks were the work of Israeli and U.S. agents.
In an op-ed
piece in the New York Post, they said that as long
as Muslim governments "remain in denial, the stage
is set for fresh disasters."
Development Counsellors International has come up with a
dozen leads for the Spanish Embassy which is trying to lure
U.S. pharmaceutical companies to invest there, said Andy
Levine, DCI president.
use a predictive model that we developed with a research
firm to identify U.S. companies that may be interested in
moving to Europe," he added.
drew up a company profile and set up appointments with executives
with appropriate Spanish officials. The firm's contact is
Luis de Velasco, who is Spain's trade commissioner.
a similar investment promotion job with Manitoba's Trade
and Investment Corp., which wants to develop the energy
resources of that Canadian province.
POTATOES RAPPED IN TIME MAGAZINE
A nutrition expert says in the current issue of Time
magazine that potatoes are a major contributor to heart
disease and diabetes.
This message is at odds with Ketchum's PR campaign for
the National Potato Promotion Board, which promotes spuds
in the U.S. as a source of Vitamin C and potassium. Those
elements are linked to the possible prevention of stroke
The story in Time's Jan. 21 issue quotes Meir Stampfer,
a nutrition professor at Harvard University's School of
Public Health, who is chair of the Department of Epidemiology,
as saying eating potatoes is a "perfect setup for heart
disease and diabetes" because the body is getting pure
Stampfer's controversial theory about potatoes is based
on a study he and his colleague at Harvard made of the eating
habits of 75,000 female nurses over a 10-year period.
He said certain foods, like potatoes, white rice and white
bread, have what is called a high glycemic index. That means
they cause blood sugar levels to rise faster than do other
foods, like beans, which are broken down more slowly.
Stampfer now recommends foods based on their glycemic
index, whole grain bread, for example, over white bread,
and basmati rice instead of white rice, and he steers clear
According to Stampfer, when a person eats a potato and
its starch mixes with saliva the tightly bundled molecules
immediately get turned into sugars and make a beeline for
the blood. "It's a perfect setup for heart disease
and diabetes," he said.
Stampfer said the problem is greatest in people who are
Edition, January 23, 2002, Page 8
board, in an act of unmitigated corporate gall, fired Andersen
as its auditor last Thursday. Chairman Ken Lay, who has
been the invisible man during the Enron crisis, said the
firm was willing to give "Andersen the benefit of the
doubt," until its special committee looking into "accounting
and other issues relating to certain transactions"
completed its probe. The board was compelled to get rid
of Andersen following news that the accounting firm shredded
Enron documents that the SEC wanted to look at.
The board seems to overlook
the fact that Enron executives created the shady off-balance
sheet transactions that ultimately led to the biggest Chapter
11 filing, last month, leaving 4,000 people without their
jobs and many losing their life savings. They prepared the
books that were certified by Andersen. Lay was warned Aug.
15 by an Enron whistleblower that the company could implode
in a wave of accounting scandals. Lay's reaction to the
letter: he continued to unload his stock, while reassuring
employees the future was bright. "As I mentioned at
the employee meeting, one of my highest priorities is to
restore investor confidence in Enron," wrote Lay in
an e-mail to workers on Aug. 21. "This should result
in a significantly higher stock price." Andersen, of
course, was wrong to destroy the documents, and should have
dropped Enron when it became concerned about its risky ventures.
By firing Andersen, Enron
is displaying "a heaping helping of chutzpah,"
wrote Dan Ackman of Forbes.com.
"Isn't Enron firing Andersen a little like O.J. Simpson
evicting Kato Kaelin because he didn't wake up and catch
that prowler," he wrote.
Enron has launched a
search for a new auditor to replace Andersen, which isn't
too broke up about the split from one of its major clients.
"Our relationship with Enron ended when the company's
business failed and it went into bankruptcy. Andersen is
committed to continuing to address the issues related to
the collapse of Enron in a forthright and candid manner,"
it said in response to being fired by the Houston energy
The Chicago-based auditor
hired Omnicom's Chlopak, Leonard, Schechter & Assocs.
unit to help restore its reputation. That won't be an easy
task. Seventy percent of respondents to a poll currently
being conducted by "O'Dwyer's PR Daily" believe
Andersen's reputation is beyond repair.
The White House is
getting a little uppity about its close ties with
Enron, according to both The Wall Street Journal
and The Washington Times-both supporters of the Bush
Administration. After an initial openness, the Bush White
House has shifted into a defensive crouch, said the WSJ.
Spokesperson "Ari Fleischer has accused the media of
embarking on open-ended fishing expeditions," reports
the WT. He has challenged reporters to come up with specific
accusations of wrongdoings.
President Bush, who used to refer to Lay as "Kenny
Boy," is now downplaying his friendship with the Enron
chief. He reminds all willing to listen that Kenny Boy was
a holdover from the Administration of Gov. Ann Richards,
who was whipped by Dubya. Lay, however, did have enough
political juice to meet with VP Cheney a half dozen times
to help him develop his "dig and drill" energy
Democrat Henry Waxman is curious about those meetings
and others that Lay and his executive team might have had
with the Bush Administration.
The California Democrat has become an ardent pen pal to
Kenny Boy, sending him letter after letter demanding information
about various contacts with the Government.
He expanded his scope of inquiry on Jan. 15, asking Lay
about a videotape of Enron executives rallying the troops
about the company's bright prospects. Former Enron President
Jeff Skilling said during a Jan. 30, 2001 video that Enron
stock would trade at $116 by the end of the year. At that
time, Enron shares changed hands at $80 each.
Skilling hit the road in August, retiring for personal
reasons after a scant six months on the job. He wasn't around
to see Enron go bust.
is big news in the U.K. these days for hiring former
Greenpeace head Peter Melchett as a consultant in its corporate
responsibility unit. The Guardian's Tim Dowling revealed
details of a "hush-hush memo" from B-M's corporate
social responsibility unit welcoming Melchett aboard.
The one-time environmental activist is to head B-M's "'corporate
conscience' desk, which will work to uncover the hidden
humanity inside organizations such as Monsanto, Union Carbide,
the Saudi royal family and Tesco."
Melchett is to be given free reign to criticize clients
about their environmental records, profits and employment
records. His role is to become the "in-house scourge
dedicated to fighting short-sightedness and injustice wherever
he may find it."
The reason: "Once the public sees that our clients
are willing to tolerate a certain amount of constructive
criticism-and are even willing to pay for it-they will realize
that everybody, including Exxon, Shell and the Indonesian
government, makes mistakes sometimes, and that we're all
just trying to do our best in a confusing and fast-changing
world," said the memo, a satirical spoof on the Melchett