June 29, 2002	Saturday	Rabi-us-Sani 17, 1423

WASHINGTON, June 28: US President George W. Bush, angered at relentless scandals in US boardrooms, said on Friday that corporate America has a responsibility to be above board instead of trying to “fudge the numbers”.

Bush pressed Congress to approve plans that, if enacted, would punish accounting-related abuses by banning corporate executives from profiting from erroneous financial statements. The plans were drawn up in response to the implosion last year of the Texas-based Enron Corp.

Bush said the Justice Department will hold accountable those responsible for any wrongdoing. But he said the problem was more than just a law enforcement one that corporations, just like schools, must adhere to high standards.

“Corporate America has got to understand there’s a higher calling than trying to fudge the numbers, try to kind of slip a billion here or a billion there and hope nobody notices,” Bush said in a speech at a fund-raising event for Maryland Republican Rep. Connie Morella.

Bush said he was not worried about the underlying strength of the US economy.

“I’m not concerned about the fundamentals of our economy. I think they are very strong. I think we’ve got the right fiscal policy in place, the right monetary policy it seems like is good. People are concerned, however, about whether or not the balance sheets of corporate America are open, whether or not the numbers are real,” he said.

Bush said any corporate officer with a responsibility to shareholders and employees have a “responsibility to be above board at all times, to be frank and honest with numbers.”

Bush will devote his Saturday radio address to the subject of corporate responsibility and will travel to New York on July 9 to stress the need for better governing at the top level of American businesses. He will also emphasize the importance of Congress approving better enforcement and rules to protect pensions, shareholders and employees.

A version of the legislation has passed the Republican-controlled House of Representatives while in the Democratic-controlled Senate, legislation pushed by Maryland Democratic Sen. Paul Sarbanes is gaining ground.

The Sarbanes bill is perceived as providing tougher enforcement. It has more provisions to enhance auditors independence by restricting consulting services they can provide, enhancing audit committee oversight, and creates a regulatory board that Democrats see as more independent.

White House spokesman Claire Buchan said the administration was working with Congress and hoped to resolve the differences “so that the president can sign good legislation.”

In recent months the ex-businessman Bush, as he reads the headlines detailing corporate scandals, has told friends and aides that he is “mad as hell at corporate America.”

TOUGH MESSAGE: White House spokesman Ari Fleischer said Bush delivered a tough message on June 13 to corporate leaders in a meeting in the White House Roosevelt Room.

“This is a message the president delivers straight and hard in private and in public. It’s something he feels very passionate about,” Fleischer said.

The WorldCom scandal, rivaling last year’s collapse of Enron, has reignited legislative efforts to tighten accounting standards and hold top company executives and investment houses accountable.

Lawmakers said they were angered and dismayed by the ever-lengthening parade of corporate scandals and the impact on the US stock markets, consumer confidence and the economy.

Democrats have seized on the corporate scandals as a possible weapon in November mid-term elections along with the fragile economy, rising budget deficits and a falling dollar.—Reuters