Congressional Research Service analysis


Earlier this month, Sen. Chuck Grassley asked the Congressional Research Service to research the consequences of a corporation, such as the Enron Corp., providing incorrect information to the Export-Import Bank of the United States and the Overseas Private Investment Corp. Grassley made the following comment on the Congressional Research Service's findings.

"This analysis is eye-opening. It shows that lying to get financial aid from the taxpayers carries serious penalties, as it should. Any corporate executives who lie and cheat to get government financial help could face years in prison, hundreds of thousands of dollars in fines, or both. The taxpayers aren't a cash cow for corporate cheats. The Department of Justice is right to investigate whether the Enron Corp. provided false information to the Export-Import Bank and OPIC. If Enron officials cheated the taxpayers, the full penalty of law should apply. I'm also pleased to see the Export-Import Bank realizes this is serious and is cooperating with the Department of Justice."

Attachments:

(1) April 23, 2002, letter from the Export-Import Bank of the United States to Grassley
(2) Congressional Research Service analysis

Note: This is a re-typing.

April 23, 2002

The Honorable Charles E. Grassley

Ranking Member

Committee on Finance

United States Senate

219 Dirksen Office Building

Washington, D.C. 20510

Dear Senator Grassley:

This is in response to your letter of April 2, 2002, concerning export credit commitments made by the Export-Import Bank of the United States ("Ex-Im Bank") that involve the Enron Corporation "Enron"). Please let me assure you that Ex-Im Bank takes very seriously potential violations of law with respect to its financing programs and works very closely with the Department of Justice ("DOJ") when such matters arise.

The Bank has been in contact with DOJ regarding Enron. DOJ is aware that Ex-Im Bank has received and relied upon financial information from Enron. DOJ has stated to us that documents in our possession may contain information relevant to DOJ's investigation of Enron, and DOJ has asked Ex-Im Bank to preserve and maintain all records relevant to the investigation. Ex-Im Bank is maintaining all such records and has provided DOJ with the information previously submitted to the Senate Finance Committee, including information on the Accroven transaction.

Again, Ex-Im Bank is committed to working very closely with DOJ regarding potential violations of law with respect to its financing programs.

Sincerely,


Eduardo Aguirre

Vice Chairman