The official responsible for regulating the energy business in Texas has become the latest casualty in the scandal over Enron, the energy-trading company based in Houston that went bankrupt in December.
Texas state public utility commissioner Mr Mario Max Yzaguirre resigned amid growing controversy over his appointment by Texas governor Rick Perry last June, according to the Dallas Morning News.
Mr Perry received a donation of $25,000 (€28,287) from Enron chief executive Mr Kenneth Lay the day after naming Mr Yzaguirre to the key energy regulation post, but said the timing was "totally coincidental". Criticism of the appointment had been building over the donation to Mr Perry, who succeeded Mr George W Bush as Republican governor a year ago, and over the fact that Mr Yzaguirre had not fully disclosed previous ties to Enron.
In Washington, it was reported that more than $700,000 was paid over the years to individual members of seven congressional committees investigating the Enron collapse, but none has removed themselves.
"If every member of Congress had to recuse themselves from any legislation or any business affecting any one of their donors, Congress would come to a screeching halt," said Mr Jeff Cronin, spokesman for the non-profit citizens' lobbying group, Common Cause.
A number of the 118 congressional investigators are giving the money back, the Associated Press reported. Texas Senator Kay Bailey Hutchison, a member of the Senate Commerce Committee, who accepted $99,500 from Enron during 1989-2001, would now donate $100,000 to a charitable organisation for laid-off workers at Enron, it said.
"These are my constituents and they have borne the brunt of the problem at Enron," Senator Hutchison said. Enron donated to 71 senators and 188 representatives in Congress, according to the Centre for Responsive Politics.
Another report said Mr Lay, who lives in Houston, had put three of his four properties in the ski resport of Aspen, Colorado, up for sale for more than $15 million.
Meanwhile, the once-cosy relationship between Enron and its accountant, Arthur Andersen, has fallen apart in a welter of recriminations. Enron yesterday fired Andersen as its auditor in what one observer called a case of the "pot dismissing the kettle".
Mr Lay said that, while willing to give Andersen "the benefit of the doubt" while an investigation was under way into the destruction of documents by Andersen, "we can't afford to wait any longer in light of recent events". He referred to the firing of the Andersen partner in charge of the Enron account.
Andersen denied it was aware of any irregularities at Enron before it was tipped off by Ms Sherron Watkins, an Enron vice-president, in August. Enron declared for bankruptcy protection after it collapsed over revelations it had hidden debt in shell partnerships.
