With politicians from Colorado to Washington to New York admitting they were beneficiaries of Enron, it is clear the influence of the nation's seventh largest company was wide. In Enron's home state of Texas, it was also deep. Those who tracked the company's 15-year transformation from a little known natural gas transmission company into the country's biggest energy trader say Enron had the loyalty of Texas until it collapsed in December. With Houston's "kingmaker" Kenneth Lay at its head, Enron secured that loyalty through a potent combination of money, lobbying and a revolving door through which employees went in and out of government, says Andrew Wheat of the advocacy group Texans for Public Justice (TPJ). "In virtually every report we have done Ken Lay has been a big player," he says. In the last two election cycles, TPJ says, Enron spent $10.2m influencing Washington politicians. During that 1997-2000 period, the company also gave $1m to Texas political action committees and state candidates, while spending up to another $4.8m on 89 Texas lobby contracts. After Governor George W. Bush moved to the White House last year, Mr Lay - a close friend of the Bush family for years - is thought to be the only executive to have a private meting with Vice-President Dick Cheney when he was formulating the new president's energy policy. Enron also backed Mr Bush's appointment of Pat Wood - the Texas Public Utility Commissioner - to head the Federal Energy Regulatory Commission (FERC). TPJ says Mr Bush's greatest "gifts" to Enron came when he was Texas governor: deregulating state electric markets in 1999, going light on corporate air polluters, and supporting laws protecting businesses from lawsuits. When Enron first began working politicians to win deregulation, the goal seemed elusive. It had been a pipeline company and, as it moved into the utilities arena, had to fight entrenched monopolies, such as Reliant, who were thought to oppose deregulation. "A Reliant lobbyist told me, 'There was nothing Enron can do as we have a lock on the House of Representatives'," says Paul Burka, executive editor of Texas Monthly. "Well, Enron unlocked it." Enron did not limit its largesse to politicians. TPJ says justices of the Texas Supreme Court have received $134,058 from Enron since 1983. In 1996, it claims, a conflict arose when the justices reversed a lower court decision to cut $15m off inventory taxes Enron owed a school district. Even the millions Enron and its employees gave annually to Texas charities were seen as political in nature, says Tom "Smitty" Smith, director of the Texas office of Public Citizen, a watchdog group. Enron's lobbying was as aggressive as its financing. "When a candidate would have a party, I used to say, 'Don't you dare get in between the guest of honour and the Enron lobbyist," says a competitor. The gifts Enron spread around town were numerous. Its own staff routinely received keepsakes, such as surfboards marked with the Enron brand on a trip to the Caribbean. Typical of gifts given associates was a baseball marked with the names of Enron and its law firm, Vinson and Elkins, commemorating their "winning team" at the opening of Houston's professional baseball stadium, Enron Field. Vinson and Elkins, Arthur Andersen - Enron's accountants - and McKinsey, its consultants, have all been long-time partners. This has meant the commingling of thousands of people with Enron each year in the Houston area. "Within two or three degrees of separation, virtually everybody would have a connection to Enron," says Richard Murray, director for the University of Houston's Center for Public Policy. And it was one they were proud of. Professors at Rice University say Enron's pizza and beer recruitment parties were most attended: Everybody wanted to work at - or with - Enron. "They were able to get people's attention and convince people they were the future," Mr Burka says. "The message Ken Lay peddled is, 'We are going to be the most important company in the world. We are going to change every market'." It was a message Texas government was eager to hear and promote for the betterment of the state. Mr Lay knew how to strike a cord with government, having spent time there as technical assistant to a commissioner of FERC and deputy undersecretary of the US Department of Interior. Enron put on its payroll former government officials who would have the same insiders' advantage. TPJ points to Wendy Gramm, wife of Texas senator Phil Gramm, whom it says Enron paid $50,000 a year to be on its board. Enron hired her in 1993, within weeks of Ms Gramm leaving the top job at the Commodity Futures Trading Commission, where she started the deregulation of energy futures markets. Enron also supported former staffers moving into public office to maintain links with government. Indeed, Mr Lay was expected to run for mayor until Enron imploded. The company's demise also cut short the political ambitions of Texas' top utility regulator, Mario Max Yzaguirre, who quit in January amid a controversy over his ties to Enron. Mr Yzaguirre originally said his only link to Enron was as former head of its Mexico operations. But he later admitted other links - most of them through inactive companies. In addition, critics note, Mr Lay contributed $25,000 to the campaign of the state governor, Rick Perry, the day after Mr Yzaguirre was made Public Utility Commissioner. Mr Perry calls the timing "totally coincidental". That may be so, but Enron's mere role in the controversy underscores the company's reputation for using money, lobbying and governmental ties to buy Texas' loyalty. "This is going to end up becoming a playbook on how to corrupt the political process," Mr Smith said.
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