BRITAIN: The multi-million dollar collapse of US energy company, Enron,claimed a high-profile British casualty yesterday when Lord Wakeham temporarily stepped down as chairman of the Press Complaints Commission (PCC).
Although Lord Wakeham, a non-executive director at Enron for eight years, described his decision as a "matter of honour" while a US Congressional committee investigated the company's spectacular demise, pressure had been mounting within political and trades union circles for him to leave the PCC.
After a stint as energy secretary under the Tories, Lord Wakeham went on to join Enron's board of directors - with a reported annual salary of £80,000 - and sat on its six-member audit and compliance committee. The committee operated as a watchdog over Enron's accountants and was charged with protecting the interests of shareholders before the company went bankrupt last December with debts of £55 billion, prompting one US union to declare that Lord Wakeham was "not fit to be a steward of investors' money". Stressing he did not want to see the PCC damaged while speculation continued about his role at Enron, Lord Wakeham, who is expected to give evidence to the Congressional committee, said: "As chairman of the Press Complaints Commission, I am only too aware of the damage that can be done to individuals and institutions that are thrust into the public spotlight." Since Enron's collapse, Lord Wakeham had been unable to make any legal statements or conduct any media interviews about the collapse because of legal reasons, a situation that added to speculation about his role.He added: "I therefore see it as a matter of honour to stand aside temporarily until the report of the Independent Investigating Commission of Enron is published and evaluated. I am cooperating actively with these inquiries."
Prof Robert Pinker, a founder member of the PCC and its privacy commissioner, will take over as acting chairman of the press regulator.
Downing Street, which has spent much of this week insisting government contact with Enron was entirely legitimate, said Lord Wakeham's decision was a matter for him alone. However, the Tories said it was the "correct decision" which contrasted markedly "with the government's failure to hold an inquiry into their links with the company and its auditors." Lord Wakeham was praised for his swift decision by the PCC's funding body which said his departure would be a "great loss."
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