Wakeham named in Enron writ

THERE was some encouragement for Enron staff and creditors on Monday, but not for director Lord Wakeham, who is a multiple loser from the US energy giant's dramatic collapse.

Company documents disclose that he was being paid a $6,000-a-month retainer on top of his annual director's pay of $50,000, plus $1,250 per board meeting attended. This suggests his total package was worth more than $122,000 (£80,000) a year.

The former Conservative Cabinet Minister also had shares worth £130,000 at their peak, but now worth very little. And he will not benefit from 'phantom stock options' at the collapsed group. Executive directors earned much more.

Enron admitted to US watchdog the Securities and Exchange Commission that it had not reported the exercise of options for seven directors, including Wakeham, in time.

New York Police Department has named Lord Wakeham and directors in a writ seeking compensation from Enron directors for an annuity fund for 15,000 detectives. The fund's Enron shares have fallen from £60 a year ago to 60p, costing them £500,000. Directors have protection against personal liability. Lord Wakeham's office said he would not comment on Enron.

The good news is that a bid auction may be developing for Enron's main US trading company. Bankers Citigroup and UBS are expected to lodge proposals to take it over. JP Morgan Chase, which, like Citigroup, is one of Enron's main lenders, is also expected to bid. Though Enron collapsed under a mountain of debt, its internet energy and metals trading operation is rated as its crown jewel. The parent group has filed for bankruptcy protection, but some traders are still working.