2 - The Michigan Daily - Friday, February 15, 2002 NATION/WORLD 0 Enron exec. says Lay was duped NEWS IN BRIEF H E ES OU- E W - WASHINGTON (AP) - Enron Corp. executive Sherron Watkins accused two top company officials yesterday of duping then-Chairman Kenneth Lay and the board of directors about improper - and possibly illegal - partnerships that concealed over $1 billion in debt. Watkins said that when she told Lay of her concerns, the chief finan- cial officer, Andrew Fastow, wanted her fired and her computer seized. Chief Executive Officer Jeffrey Skilling, Fastow and other executives "did dupe Ken Lay and the board," she testified at a hearing of the House Energy and Commerce inves- tigative subcommittee. "There were swindlers in the emperor's new clothes discussing the fine material that they were weaving," said Watkins. "And I think Mr. Skilling and Mr. Fastow are highly intimidating, very smart individuals and I think they intimidated a number of people into accepting" questionable structures for the partnerships. Self-assured as she answered law- makers' questions, Watkins spoke clearly and in detail and smiled when lawmakers praised her for sticking her neck out to the energy-trading compa- ny's top official. Rep. John Dingell (D-Mich.) called Watkins "an extraordinary and coura- geous woman" and a "bright spot" in a company where executives turned a blind eye to abuses. Skilling's attorney, Bruce Hiler, dis- puted Watkins' statements. "Every- thing she said about my client is based either on hearsay, rumor or opinion," he said. "She did not talk to my client. She has no basis in fact for her views." Watkins testified she was told last summer by an Enron personnel execu- tive that Fastow - chief architect of the complex partnerships that eventu- ally brought the company down - wanted her to be terminated for taking her concerns to Lay. "I was not comfortable confronting ... Mr. Fastow with my concerns," Watkins said. "To do so, I believed, would have been a job-terminating move." Watkins also placed blame on Enron's auditor, Arthur Andersen - where she had worked for eight years before going to Enron - and Vinson & Elkins, a law firm representing Enron. WASHINGTON Campaign finance bill passes in house Moving swiftly, Senate Majority Leader Tom Daschle pledged yesterday to seek passage of sweeping legislation to rewrite campaign spending rules "the minute we receive it" from the House. He said any filibuster was doomed. "This is the year we're finally going to pass campaign finance reform," Daschle (D-S.D), said at a combination news conference and celebration arranged by jubilant supporters of the measure less than eight hours after the House approved it. White House spokesman Ari Fleischer did not respond directly when asked whether President Bush would sign the bill designed to reduce the influence of money in political campaigns. "The president will wait to be declarative until he sees what the final bill is," Fleischer said, although supporters and opponents alike have predicted for days that Bush's approval was assured. The developments unfolded as the Senate's principal opponent of the measure, Sen. Mitch McConnell (R-Ky.) said he wanted to study the House- passed bill before deciding on a strategy. Either way, he seemed resigned to passage, telling reporters he would be the lead plaintiff in a lawsuit to be filed if the bill became law. 0 AP PHOTC Enron Corp. executive Sherron Watkins, accompanied by her attorney Philip Hilder, testifies on Capitol Hil before the House Energy and Commerce subcommitte. Asked whether she believed Ander- sen was culpable in Enron's collapse, she replied, "I think so because they're charged with auditing the results." Watkins said she did not go to the Securities and Exchange Commission or other federal agencies with her concerns about Enron's financial practices because "I didn't want to hasten our demise." She said Lay had asked her if she went outside the company with her con- cerns. When she said no, Lay asked her for time to investigate, Watkins testified. She spoke as Enron announced from Houston that two top Enron executives at the center of the drama, accused of failing to help control the partnerships, were fired. Chief accounting officer Rick Causey was among those named by Watkins as mistakenly trusted by Lay "to manage the details." THE HAGUE, Netherlands Milosevic says trial planned against him Shifting from accused to accuser, Slobodan Milosevic took the offensive at his war crimes trial yesterday and charged that Western.countries tried to bomb Yugoslavia "back to the Stone Age" and were staging a political trial against him. In his first chance to speak in his defense, the ousted Yugoslav president claimed he had tried to prevent civilian casualties during the Balkan wars, that he fought a legitimate campaign against terrorists destabilizing his country, and that he knew nothing of Bosnian Serb concentration camps. After sitting restlessly through two days of wrenching prosecution allegations that he orchestrated murder, rape and expulsions, Milosevic dismissed the prose- cution case as "concoctions." Thumping his desk and waiving his arms energetically, he told the prosecutors, "You basically have nothing. You just want to invent things. This is a political trial, and this has nothing to do with the law itself." In what is seen as the most important war crimes trial since World War II, the 60-year-old Milosevic could face life in prison if convicted of any of 66 charges against him. U.S. officials believe reporter is still alive KARACHI, Pakistan (AP) - A British-born Muslim militant admitted yesterday to kidnapping Wall Street Journal correspondent Daniel Pearl and said he believed the journalist is dead. Officials dismissed the militant's claim, and the Journal said it remained confident Pearl is alive. "As far as I understand, he's dead," Ahmed Omar Saeed Sheikh said in a courthouse in the southern Pakistani city of Karachi, where Pearl disap- peared on Jan. 23 while investigating a story on Islamic militants. Saeed said he carried out the kidnapping of "my own free will," adding: "I don't want to defend this case. I did this." The 27-year-old Saeed has a history of kidnapping Westerners. He appeared in court yesterday sullen, bespectacled and surrounded by police with machine guns, helmets and bullet- proof vests. He was formally charged with kid- napping and ordered jailed for two more weeks. Officials quickly cast doubt on Saeed's statement about Pearl's death. He gave no details on where or when the 38-year-old journalist was allegedly killed, and just a day earlier, police said, he had told them Pearl was still alive. Learn more at www.sph.umich.edu/hmp The University of Michigan Master's Program in Health Management and Policy has been ranked #1 nationally by U.S. News & World Report since 1993. To learn more and to apply, see our website or phone 734.763.9900 today. kY N> k b l ) ...S I ----- : REC INTRAMURALS The University of Michigan Department of Recreational Sports INTRAMURAL SPORTS PROGRAM WHAS HAPPEN ING In Washington, Pakistani President Pervez Musharraf said his government does not believe Saeed because he has been "saying something one day and another thing on the other day" "We are putting all kinds of pres- sure," Musharraf said after a meet- ing yesterday with U.S. lawmakers. He said intelligence agencies in Pakistan and the FBI are doing their "utmost" to secure Pearl's release. "I hope and pray that he's alive," the president said. Interior Minister Moinuddin Haider also dismissed Saeed's claim. "Until the body is found we can- not believe what Omar is saying," Haider said. "We need proof or evi- dence. We will continue to work on him, grind him, ask him 'where was Pearl kept? Where is his body?' Omar himself admitted he master- minded and planned this crime." Pearl's wife, Mariane, who is six months pregnant with the couple's first child, pleaded for her husband's release in a letter to his captors. "As you know, Danny is an inno- cent man, a journalist who has come to you as a guest with an open mind and the sole objective of writ- ing about your views for a global audience," she wrote. CURRY Continued from Page 1 County Jail work program by May 1. The work program coordinates com- munity service projects, ranging from picking up trash to larger projects like park improvements. In addition, Hines stipulated Curry could not be involved in any assault behavior and cannot possess alcohol or drugs at any time during the next 12 months. During the hearing, Curry's lawyer, Steven Fischman, asked for two claus- es in the original sentence to be removed - one requiring court drug and alcohol testing, and another pro- hibiting Curry from contacting the vic- tim. Fischman said that Curry should be exempt from drug testing because he is tested regularly as a member of the football team. He also said the vic- tim is still dating Curry. Judge Hines consented with both objections. "I think it's a very fair result," Fis- chman said. If Curry does not violate the terms of his probation for 11 months, Judge Hines told Curry that she will elimi- nate the last month. However, she warned Curry to follow his sentencing closely. "Violation of any terms will result in jail;" she said. CONTRACT Continued from Page 1. GEO said it won't extend the con- tract because members feel the Univer- sity has been stalling the negotiations and because they found many of the University's counterproposals unac- ceptable, de Leon said. "The Administration (last) Thursday said that they would give us a proposal on child care (on Tuesday), which we took to mean that they would give us some kind of meaningful concession;' de Leon said. He said they didn't feel the University's proposals were acceptable. GEO's proposal on child care asks the University to provide a child-care facili- JERUSALEM Bomb under tank kills 3, wounds 2 A bomb went off under a tank in the Gaza Strip yesterday, killing three Israelis and wounding two, military officials said, as European diplomats stepped up an offensive to end Israeli- Palestinian violence. The attack followed an Israeli incur- sion into Gaza that was denounced by the Palestinian leadership as a "danger- ous escalation" in violence. It was Israel's largest operation in Gaza during 16 months of Israeli-Palestinian clash- es. The military officials, speaking on condition of anonymity, said Palestini- ans opened fire on a civilian convoy guarded by soldiers and set off a bomb. The Israelis responded by sending a tank into the area and soon after a sec- ond, larger bomb exploded under it, they said. Israel Radio and TV said the casualties were soldiers in the tank. WASHINGTON American operation to land in Philippines American soldiers will march into a Philippine jungle this weekend to train local troops to battle Muslim extrem- ists, in the process broadening the U.S. military war against terrorism. Critics see unnecessary dangers in the move. Backers say it's a logical step to carry the anti-terror campaign beyond Afghanistan, and with far less military commitment. "This is not an operation like you, saw in Afghanistan," said Gen. Richard Myers, chairman of the Joint Chiefs of Staff, referring to the hunt for Osama bin Laden and al-Qaida terrorists in that arid, mountainous land. "This is assis- tance. This is training." The Pentagon plans to start moving tomorrow the first of some 160 special operations troops onto the southern Philippines island of Basilan. COLLEGE STATION, Texas Scientists announce first cloning of a cat In an advance that takes cloning out of the barnyard and into the liv- ing room, researchers announced yesterday they have cloned a cat. The female domestic shorthair is called "cc" for "copycat." It was born Dec. 22 and is now healthy and frisky, researcher Duane Kraemer of Texas A&M University in College Station said. Headed up by Dr. Mark Westhusin of A&M's veterinary medicine school, the project is the first report- ed success in cloning dogs or cats, which has been long discussed for pet owners. Many people have already stored cells from their pets in anticipation of cloning in the future, said Krae- mer. "It looks like there will probably be quite a lot of interest," he said. - Compiledfrom Daily wire reports. Intramural Broomball OfficNals Needed!! 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