Washington Report on Middle East Affairs, April 2002, page 23

Special Report

 

William Kristol Takes Enron Money But Retains His Reputation

 

By Richard H. Curtiss

While everyone agrees that the Enron problem is a scandal, not so many can define the way in which it evolved and where it is going from here. It will take a lot of bookkeepers and several years to determine how Enron used its influence in what seemed closer to a Ponzi scheme than a serious attempt to do anything but cover up a multitude of sins. So while the victims lost their life’s savings, it seems that Enron insiders will live happily and profitably forever after.

Perhaps because the story seems impossibly complex, hardly anyone noticed that one of the people who was caught flat-footed got into the mainstream media, very briefly, before vanishing almost instantly from public notice. That would be William Kristol, editor of the Weekly Standard, which somehow manages to get a lot of publicity, although very few people seem actually to subscribe.

One thing that does not make sense, however, is why William Kristol received $100,000 from Enron. If he did anything for the money, Kristol has not explained it to other journalists. Although one might have thought it a good idea for him to conveniently have taken a long vacation, he just seemed to laugh it off. Nor, as far as this writer knows, has Kristol refunded the check.

Mind you, the Weekly Standard editor seems not to have been the only recipient of Enron’s largesse. So far, at least three other journalists and writers have admitted that they, too, had received money from Enron. And they seemed to suggest that, in return, they had been “admitted to an Enron board of directors,” with duties unspecified.

They included CNBC host and National Review Online columnist Lawrence Kudlow ($50,000); New York Times columnist Paul Krugman ($50,000); Weekly Standard contributing editor and Sunday Times of London columnist Irwin Stelzer (approximately $50,000). A former presidential speechwriter, Wall Street Journal columnist Peggy Noonan, also received money from Enron, but cannot recall whether the amount was $25,000 or $50,000. Receiving payment for such work as Noonan’s seems more plausible, however, since there clearly was an end product—in her case, speeches—unlike the case of the other four journalists.

Presumably there will be others as the Enron scandal unfolds. To date, however, only William Kristol has received twice as much money for doing nothing as any of the others did.

Although journalists often receive honoraria for speeches, there is a difference between what some people might call a “legitimate appearance” on a talk show like “The McLaughlin Group,” and Enron’s payment to Kristol. “The McLaughlin Group” pays minimum amounts, less than $1,000, to its guests, a figure in no way comparable to the $100,000 given by Enron to William Kristol last year.

The New York Times reported that, at the request of Bush senior adviser Karl Rove, former Christian Coalition head Ralph Reed received a $10,000-per-month consulting fee at Enron.

There may be more journalists who are Enron beneficiaries, but, except for that very brief flurry of interest in Kristol and his less well-paid colleagues, this writer so far has been unable to unearth them.

There have been similar occasions in the past, of course—George Will comes to mind. He has become an opinion columnist and a popular after-dinner speaker. Although it once was considered a conflict of interest to accept speaking fees for guest appearances or lectures, this has long since been brushed aside.

In earlier years members of Congress were allowed to accept money in addition to their salaries. This privilege was roundly abused by both political parties. In some cases members of both parties provided a venue in order to earn a fee. When necessary, they even wrote the speech; there were instances when the speeches were never delivered but the payoff nevertheless made. Finally, members of Congress voted to give themselves higher salaries but with a proviso that put a limit on how much additional money they could earn.

The question of how much members of the press can earn has never been dealt with, however. Obviously some code of conduct is called for to prevent abuses.

Meanwhile the question remains: what did William Kristol do to earn his money for Enron? Not much, evidently. Why, then, is the American press so frightened to speak out? More to the point, when should a member of the journalistic profession be disgraced, or at least dropped from the ranks of legitimate journalists? It’s a question that urgently calls for review.

Richard H. Curtiss is the executive editor of the Washington Report on Middle East Affairs.

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