By Purva Patel
(U-WIRE) AUSTIN, Texas — University of Texas School of Law Dean William Powers Jr. resigned from the Enron Corp.’s board of directors Thursday, citing a need to refocus on the University.
In a letter of resignation to Enron executive John Duncan, Powers said he had completed investigating the company’s questionable transactions and wishes to focus on his duties as dean of the law school.
UT President Larry Faulkner said he has spoken to Powers about his growing obligations at Enron, but the administration never asked him to reconsider the position.
“He came to this decision on his own,” Faulkner said. “I think he feels he’s made his contribution, and we applaud him for turning his attention back to the law school.”
As dean, Powers is responsible for developing academic and research programs; working as a contact for faculty, students and other campus units; maintaining relationships with alumni and the government; and overseeing the school’s $20.1 million operating budget and $156 million endowment.
Chris Feldman, an Austin, Texas, attorney who works for Public Citizen, a judicial watchdog group, said Powers’ decision is good for the school and its image.
“For appearance’s sake, he probably did the right thing,” Feldman said. “I guess the ultimate question is if he should have joined the board in the first place, but that’s open to debate.”
Feldman was one of several critics who said Powers’ presence on Enron’s board of directors posed a conflict of interest.
The controversy stemmed from the large amount of contributions Enron had made to the University in the past and Powers’ ties to a company official.
Houston-based energy corporation Enron announced the selection of Powers as a new board member and chairman of a special committee reviewing the company’s transactions Oct. 31. He corresponded with the Securities and Exchange Commission and issued the internal report that accused executives, auditors, lawyers and other board members of creating partnerships to inflate earnings, hide debt and enrich some insiders.
Critics said Enron’s large contributions to the University, including $250,000 to the law school, would inhibit Powers’ ability to serve as an independent board member.
They said Powers’ independence also was compromised because of the law school’s connections with Enron officials such as General Counsel James V. Derrick Jr., who has served in major fund-raising positions for the school. Derrick resigned from the Longhorn Foundation, a fund-raising group for the law school, when Powers joined the Enron board to avoid any perceived conflicts of interest.
Powers could not be reached for comment but released a statement in which he stated, “Because of the ongoing nature of the Enron investigation, it is appropriate that I save comment on my Enron-related duties for the investigations of official agencies, should my comments be sought.”
Enron spokesman Vance Meyer said the direct implications of Powers’ resignation are not yet apparent since the board recently announced it was in the process of restructuring.
Meyer added Powers’ actions during his time on the board were “nothing short of stepping up to the plate.”
