US President George Bush promised on Monday to pursue executive lawbreakers and restore trust in corporate America but was forced to defend his own record as a Texan oil executive.
”We will vigorously pursue people who break the law. I think that will help restore confidence to the American people,” Bush told a surprise news conference after a slew of corporate scandals.
”I am very worried about a country that has — could conceivably — lose confidence in the free enterprise system,” he said.
”I am an avid backer of the free enterprise system. But I also understand that that requires trust. We have had some destroy the trust of the American people and we need to do something about it.”
Bush was set to announce new measures during a speech on Wall Street Tuesday to steady investors’ nerves, shaken since former energy giant Enron began to disintegrate late last year.
?Tomorrow, I’ll call for a stronger SEC (Securities and Exchange Commission) — more investigators and more budget,” he said. An avalanche of suspect accounting revelations has tumbled onto the markets this year, from photocopier group Xerox to bankrupt telecom firm Global Crossing.
The troubles culminated last month with the revelation that telecommunications giant WorldCom had misstated $3,8-billion in expenses.
”I think it’s pretty clear when somebody’s trying to defraud,” Bush said. ”And when you’ve got an error of $3,4-billion, I think it was, it’s a pretty clear indication that something might be there.”
But Bush was put on the backfoot when he faced questions about an eight-month delay in his filing a notice confirming he had sold stock in Harken Energy, on whose board he served.
Asked why he was late in filing the notice to the SEC, Bush said: ”I still haven’t figured it out completely.
”But nevertheless, the SEC fully looked into the matter. They looked at all aspects of it, and they did so in a very thorough way, and the people that looked into it said there is no case.”
The incident occurred more than a decade ago but has resurfaced ahead of November legislative elections. ”This is recycled stuff,” said Bush, who has emphasised that he filed the required notice of intent to sell on time.
”And the SEC fully looked into this. All these questions that you’re asking were looked into by the SEC. And I repeat to you the summary, which I think you’ve seen — I hope you’ve seen it; if not, we’ll be glad to get it to you – said there was no case there.”
Bush also was asked about Harken’s 1989 sale of a petroleum subsidiary, which later led the SEC to require Harken to restate its earnings.
”There was an honest difference of opinion as to how to account for a complicated transaction,” Bush said.
Asked whether he had supported the sale of the subsidiary, Bush said: ”You need to look back on the director’s minutes, but all I can tell you is that in the corporate world sometimes things aren’t exactly black and white when it comes to accounting procedures.
”This and all matters that related to Harken were fully looked into by the SEC. And in this case the system worked. There was an honest difference of opinion as to how to account for a complicated transaction. You’re going to find that in different corporations. Sometimes the rules aren’t as specific as one would expect, and therefore the accountants and the auditors make a decision.” – Sapa-AP