Chet Edwards, guest columnist: Bill Flores showed his true colors when times got tough

CHET EDWARDS Guest columnist

Sunday October 3, 2010
 
 

Two weeks ago the Waco Tribune-Herald reprinted on its editorial page an article from the Austin American-Statesman about one of my recent television ads. I appreciate the opportunity now to respond to that article.

The facts are as follows:

Bill Flores ran a television ad saying “his energy companies” created over 500 jobs — a claim the Statesman labeled “barely true.” My campaign responded with an ad saying:

“Bill Flores says ... ‘His energy companies created over 500 jobs.’ What he doesn’t say is that an oil company he helped run laid off over 3,000 workers. And then paid off its top executives with millions. Over 3,000 workers thrown out of work — executives get payments of millions. Did Bill Flores really think no one would find out?”

In 1998, Flores was the chief financial officer of Western Atlas when he helped “negotiate and execute” (Oil & Gas Journal, “Moves and Promotions,” April 19, 1999) a merger with Baker Hughes.

Flores has admitted publicly that the merger directly caused 170 employees to lose their jobs. Despite those layoffs and Flores’ statement that the additional layoffs were due to “poor industry conditions,” executives were rewarded in the merger with $60 million in special payments.

What is most disturbing is that Flores has repeatedly refused to admit the extent to which he financially benefited from the merger deal he helped negotiate.

Did Flores receive anything from the $60 million payout amidst layoffs and tough times?

On Aug. 10 in Whitney, Flores said to voters that, during his tenure in the energy business, “when times were bad, we’d cut pay, we’d cut managements pay first.”

If that is true, then why would Flores hide whether he personally rewarded himself or his fellow executives with the merger deal he helped negotiate and execute?

Our campaign ad said that Flores “helped run” a company that laid off more than 3,000 workers. U.S. Securities and Exchange Commission documents verify that the newly merged Baker Hughes laid off more than 3,000 workers in the months after approval of the very merger that Flores negotiated.

On the question of whether Flores “helped run” the newly merged Baker Hughes, Flores’ 2004 official resume submitted to the state of Texas for a position with the Texas Real Estate Commission reads:

“... Flores assisted Baker Hughes with special projects until December 31, 1998. During his tenure, he reported to the President and CEO and maintained an open dialogue with the non-executive Chairman of the Board and members of the Board of Directors. His direct reports included the Vice President of Finance and Administration and the Vice President-Treasurer. His scope of authority included (i) mergers, acquisitions and divestitures, (ii) financings and capital market activities, (iii) investor and institutional relations, (iv) planning and budgeting, (v) treasury, (vi) worldwide taxation, (vii) information and communications technology, (viii) accounting, (ix) corporate reporting, (x) risk management and insurance, and (xi) corporate facilities and administration.”

Where I come from, that sounds like Flores was claiming on an official state document that he helped run the company his merger created.

These are the facts. Now I believe the real question that Bill Flores should answer for voters is this: Was it fair for him to help negotiate a merger deal that rewarded executives, possibly including himself, with $60 million in special payments while laidoff workers would have to worry about how to support their families?

My record of creating thousands of private and public sector research, defense and veterans administration jobs in this district is clear. Real jobs.

In contrast, Flores has proposed plans that would not only fail to create jobs but could kill thousands of jobs throughout our district.

I believe voters deserve to know before the election, not after, whose side Flores is on during tough times.

Chet Edwards serves Congressional District 17 in the U.S. House of Representatives.

 

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