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Enron Mail |
Cc: eric.shaw@enron.com, michael.brown@enron.com, brian.stanley@enron.com,
jackie.gentle@enron.com, richard.lewis@enron.com, joe.gold@enron.com, mark.evans@enron.com, lloyd.wantschek@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable Bcc: eric.shaw@enron.com, michael.brown@enron.com, brian.stanley@enron.com, jackie.gentle@enron.com, richard.lewis@enron.com, joe.gold@enron.com, mark.evans@enron.com, lloyd.wantschek@enron.com X-From: John Sherriff X-To: Ken Lay and Jeff Skilling@Enron, Steven J Kean, Mark Frevert, Greg Whalley, Mark Palmer, James Derrick X-cc: Eric Shaw, Michael R Brown, Brian Stanley, Jackie Gentle, Richard Lewis, Joe Gold, Mark Evans, Lloyd Wantschek X-bcc: X-Folder: \Steven_Kean_Nov2001_4\Notes Folders\Discussion threads X-Origin: KEAN-S X-FileName: skean.nsf Eric Shaw's team has learned that an investigation has been initiated by th= e=20 Turkish military to expose and eliminate corruption in the Turkish energy= =20 sector. On January 6, the military took seven energy sector bureaucrats into custod= y.=20 In the following days, other officials from TEA? (the electricity generatio= n=20 monopoly) and the Ministry of Energy and Natural Resources (MENR) and=20 executives from a number of Turkish companies were also taken into custody.= =20 While many of the bureaucrats and executives have been released, a leaked= =20 report from the military investigators suggests that the operation is wide= =20 ranging and may ultimately target the Minister of Energy and Natural=20 Resources and other senior energy sector bureaucrats and businessmen.=20 Enron Implications Trakya - One Turkish newspaper has reported that Enron=01,s 478 MW Trakya = power=20 project was being investigated. This has not been reported anywhere else. = =20 Because the power price at Trakya has been the target of criticism in the= =20 past, we are not surprised by this report. Although an investigation is=20 always a possibility, other than the one newspaper report, there has been n= o=20 indication, official or otherwise, that an investigation is planned or=20 underway. =20 GAMA - It has also been reported that the wife of Gorkhan Yardim, the Gener= al=20 Manager of BOTA? (the natural gas monopoly), works at GAMA, our Turkish=20 partner in the Trakya project, and that his expensive car was a gift from= =20 GAMA. GAMA has told us, and Yardim has defended himself publicly by saying,= =20 that his wife has been working at GAMA since 1993, long before Yardim had= =20 risen to his current position of power at BOTA?, and that the car was not a= =20 gift from GAMA. It is worth noting, however, that there have been a number = of=20 newspaper reports questioning GAMA=01,s role in a controversial gas marketi= ng=20 deal being undertaken by their TurRusGas joint venture with Gazprom and BOT= A?. Outlook It is still not clear how or when this investigation will end. In the mediu= m=20 and long term, this will be good news for Enron and other reputable Turkish= =20 or foreign companies which have found it difficult to do transparent energy= =20 deals in Turkey in the past. In the short term, however, it is likely to=20 result in a marked decrease in meaningful activity in the Turkish energy=20 sector, as worried bureaucrats, innocent and guilty, lay low.=20 We will continue to monitor developments, especially with regard to the=20 Trakya project, and report as necessary.
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