STEARNS QUESTIONED SKILLING AT HOUSE HEARING; HELD HEARINGS ON ACCOUNTING ABUSES AND WAYS TO PREVENT THEM

Washington, May 26, 2006 - "I am pleased to see that our justice system is working with the conviction of Enron executives Ken Lay and Jeffrey Skilling," stated Rep. Cliff Stearns (R-Ocala). "The collapse of Enron devastated thousands of investors and employees, and all of this resulted from greed. Corporate corruption, as with any crime, must be vigorously prosecuted."

Stearns participated in hearings examining Enron and other companies involved in financial abuses. In 2002, Stearns questioned Jeffrey Skilling about certain transactions and accounting abuses that destroyed Enron. Said Stearns, "I found him arrogant - in addition, I was credulous of his testimony that he had not been told of Enron's problems by J. Clifford Baxter, Vice Chairman of Enron." Baxter committed suicide in 2002. At that hearing, Stearns stated, "The more I learn of the inner workings in this Enron debacle, the more appalled I become. We have seen that part of this collapse was due to a complete failure of oversight and fiduciary responsibilities. We also have seen obvious instances of fraud."

As Chairman of the Commerce, Trade & Consumer Protection Subcommittee, Stearns held hearings on accounting practices. "I applaud then Chairman of the Energy & Commerce Committee, Billy Tauzin, for holding the first hearings on Enron. It is essential that Congress provide oversight to ensure that our financial and accounting laws are up to date and effective."