Former Enron chairman refusing to answers questions

Former Enron chairman Kenneth Lay, who has been summoned to testify before the US Congress tomorrow, will assert his right against self-incrimination and refuse to answer questions, his spokeswoman has said.

‘‘Under the instruction of counsel, Mr Lay will exercise his fifth amendment rights at the Tuesday hearing,’’ Kelly Kimberly said in Houston last night.

Two committees snubbed by Mr Lay a week ago have issued subpoenas compelling him to appear.

Lay’s colleague at Enron, former chief executive Jeffrey Skilling, testified last week.

But a number of leaders of Congress’ investigations of the Enron collapse made clear earlier yesterday that they did not believe the sworn testimony of Mr Skilling. One suggested Mr Skilling could face accusations of perjury as a result of his testimony.

Mr Lay, a friend and political backer of President George W Bush, has not spoken publicly about the Enron disaster since the company entered bankruptcy in December.

His wife Linda said recently that there were some things about Enron’s finances her husband had not been told about by other company officials.

After an intense week of hearings, lawmakers say they have strong evidence of illegal activity surrounding the failure of the energy-trading company, which slid into the biggest bankruptcy in US history on December 2, last year.

A House of Representatives investigative panel heard hours of conflicting testimony on Thursday from Mr Skilling and other top company officials. Mr Skilling said he knew few details of the complex web of partnerships that brought down Enron and insisted he was never warned of problems with the arrangements.

Representative Billy Tauzin, who heads the congressional House and Energy Committee, told the CBS Face the Nation programme that committee members did not believe Mr Skilling.

‘‘He was totally incredible,’’ he said. ‘‘This is the guy who was in charge of the corporation. ... I’m afraid he may have put himself in some legal jeopardy as a result’’.

Asked whether Mr Skilling could face a perjury indictment by federal prosecutors, Mr Tauzin replied: ‘‘That could happen...He could have some real problems’’.

Mr Skilling’s lawyer, Bruce Hiler, said later he was ‘‘shocked at the unsupported charges being levelled at our client’’.

Some Democrats highlighted the political dimensions of the Enron collapse. Politicians from both parties said they hoped the debacle would give a boost to legislation before the Congress this week designed to curb financial influence on federal elections.

‘‘Ken Lay is the poster child for cash-and-carry government,’’ Senate Commerce Committee Chairman Ernest Hollings said.

He cited Enron’s ties with several Bush administration officials and its heavy donations to Mr Bush’s presidential campaigns as well as those of numerous senators and congress representatives from both parties.

As the US Justice Department and the US Securities and Exchange Commission investigate Enron and its long-time auditor, Arthur Andersen, politicians in both parties have scrambled to return campaign contributions connected to Enron and its executives.