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Enron ventures got over $1 billion in US aid

Foreign ventures involving Enron Corp received over a billion dollars in US government loans and other support since the mid-1980s, a senior Republican senator said on Wednesday.

Figures for export financing and foreign investment loan guarantees that benefited the failed energy giant were released by Sen Chuck Grassley, an Iowa Republican and the ranking member of the Senate Finance Committee.

Enron, a huge political donor before it made a record US bankruptcy filing in December, enjoyed access to successive administrations and Grassley noted nearly all the assistance was made under the eight years of President Bill Clinton's Democratic administration.

Grassley had asked agencies to account for actions they took in support of Enron's overseas business transactions since the formation of the company in the mid-1980s.

He released letters and documents from the Overseas Private Investment Corp showing the agency gave $544 million in loans to projects with an Enron financial interest from fiscal 1993 to 2000.

There was another $204 million in exposure by OPIC to political risk insurance projects with Enron equity involvement from 1992 to 1999.

Last week the Export-Import Bank said it gave more than $650 million to Enron-related companies overseas.

In addition, the Trade and Development Agency gave more than $1 million from 1992-2001 for projects involving Enron or its units and sponsored 11 trade missions involving Enron, Grassley said.

"The disclosure of this information sheds light on the government's actions in support of Enron over the years," he said in a statement.

OPIC said its exposure to Enron's bankruptcy was limited to the energy firm's ability to continue to pay its political risk insurance premiums. Even in the event of a claim, OPIC would be exposed to only a portion of the total amount of insurance coverage.

The Ex-Im Bank said it had not extended credit directly to Enron but was closely monitoring the debt service by three huge power and gas projects in India, Turkey and Venezuela.

OPIC documents released last month showed the Bush administration last year intervened with top Indian officials to salvage the Dabhol power project, which is 65 per cent owned by Enron.

The White House has said the effort, involving Vice President Dick Cheney and other senior officials, was justified because of taxpayer exposure through OPIC and Ex-Im Bank.

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