| Global update |
Governor removes Goldschmidt from council
Diana Goldschmidt is under investigation after
refusing to resign from Oregon Investment Council
BY WILLIAM MCCALL
THE ASSOCIATED PRESS
PORTLAND — An investigation
was launched Wednesday into the
role of the wife of former Gov. Neil
Goldschmidt in the proposed $2.35
billion purchase of Enron subsidiary
Portland General Electric.
TUesday Gov. Ted Kulongoski re
moved Diana Goldschmidt from the
Oregon Investment Council after she
refused to resign following questions
about the timing of her vote to ap
prove a $300 million investment in
Texas Pacific, the company that plans
to buy PGE from bankrupt Enron.
The Oregon attorney general’s of
fice began the investigation at the re
quest of Kulongoski and state TYea
surer Randall Edwards, said Kevin
Neely, spokesman for Attorney Gen
eral Hardy Myers.
Diana Goldschmidt approved the
Texas Pacific investment the same
day the buyout firm asked her hus
band to lead the PGE takeover.
The couple has repeatedly denied
it knew Texas Pacific would make an
offer to Neil Goldschmidt.
Texas Pacific declined to comment
on the investigation.
Last year, Kulongoski named Neil
Goldschmidt chairman of the Oregon
Board of Higher Education to lead a
sweeping reform, but Goldschmidt
resigned from the board at the same
time he resigned as chairman of Ore
gon Electric Utility Co., which was
formed by Texas Pacific to manage
the PGE takeover.
The resignations followed a con
fession by Neil Goldschmidt that he
sexually abused a 14-year-old girl
when he was Portland mayor in the
1970s.
Neil Goldschmidt has since avoid
ed any public involvement, but Di
ana Goldschmidt remained on the in
vestment council, which manages
$60 billion in state investments, in
cluding the Oregon Public Employees
Retirement Fund.
Questions about Texas Pacific and
Diana Goldschmidt have lingered.
“It’s my desire that we take every
measure to maintain the highest de
gree of ethical behavior when it
comes to investing public funds,” Ed
wards said.
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European Catholic bishop
resigns after pom scandal
Discovery of pornography in Austrian seminary leads
thousands to withdraw from the church
BY WILLIAM J.KOLE
THE ASSOCIATED PRESS
VIENNA — A Roman Catholic
bishop blamed for a seminary porn
scandal that has rocked Austria's
church has resigned, Austrian media
reported Wednesday.
Bishop Kurt Krenn, who had over
all responsibility for the seminary
where authorities found up to 40,000
lurid images on computers - includ
ing child pornography - sent a letter
to Pope John Paul II saying he was
stepping down, Austrian state radio
said.
The newspaper Der Standard quot
ed Krenn in its Thursday edition as
saying: “Yes, I am resigning immedi
ately as bishop of St. Poelten,” the
diocese 50 miles west of Vienna
where the seminary is located.
Neither Krenn nor diocesan offi
cials were immediately available for
comment.
The Austrian Bishops Conference
declined to comment Wednesday
evening, saying it would await an offi
cial announcement from the Vatican.
The pope appointed another Aus
trian cleric, Bishop Klaus Kueng, as
an “apostolic visitor” to investigate
the affair, which has deeply embar
rassed the Roman Catholic church.
Police have been conducting a sepa
rate criminal investigation.
Last month, Kueng shut down the
seminary, where trainee priests also
had snapped photographs of each
other kissing and fondling one anoth
er and their older religious instruc
tors. Some of the photos were pub
lished, triggering an uproar that
church officials disclosed last week
has prompted as many as 10,000 be
lievers to formally withdraw from
church rolls.
Calls had mounted on Krenn, 68,
to resign or be fired by the Vatican af
ter his dismissive comments charac
terizing the downloading of the
pornography at the seminary as noth
ing more than a “childish prank.”
In an interview with Der Standard,
Krenn said he was stepping down
voluntarily from the post he has held
for 13 years, and not because of pres
sure from Rome.
Prosecutors investigating the child
pornography aspect of the case have
charged a 27-year-old former semi
nary student from Poland with pos
sessing and distributing illicit materi
al, a federal offense punishable by up
to two years in prison.
The scandal, and a separate affair
involving allegations that a promi
nent Austrian priest sexually molest
ed at least 10 youths in the 1980s,
have prompted believers to leave the
church.
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