Enron threatens sanctions against India

Vol 5, PW 14 (29 Aug 01) News in Brief
     

Enron chairman Kenneth Lay has dug himself into a hole with threats of likely US sanctions against India to recover $1bn costs from the troubled Dabhol power project.

"There are US laws that could prevent the US from providing any aid or assistance or other things to India going forward if they expropriate property of US companies," Lay was quoted by news agencies on 24th August. When Indian newspapers front-paged the story Lay realised the damage he'd done and the next day he wrote to Indian PM Atal Behari Vajpayee.

"I have not asked anyone in the US government to consider sanctions," Lay wrote. "My discussions appear to have caused significant unintended concern."