Scandals

BP plc said Friday that CEO John Browne, who has faced increasing scrutiny from U.S. regulators, politicians and stakeholders following problems, accidents and scandals within some of the company’s business units, will retire at the end of June, more than a year earlier than planned. Tony Hayward, currently head of exploration and production (E&P) for the London-based major, will succeed the embattled CEO.

Steve Letbetter, chairman and CEO of Reliant Resources Inc. (RRI) resigned over the weekend, yet another casualty of the scandals and collapse of the energy marketing industry. Board member Joel V. Staff, former CEO of National Oilwell Inc., has assumed Letbetter’s responsibilities until a new CEO is elected.

As the energy scandals multiplied and intensified last week, the Federal Energy Regulatory Commission — the agency that normally probes industry improprieties — had the tables abruptly turned on itself. Sen. Byron Dorgan (D-ND), who is leading the charge into Enron Corp. and other energy mischief on Capitol Hill, called for an independent investigation into the “behavior and contacts” of FERC to find out why it apparently looked the other way while Enron and possibly other energy suppliers engaged in wholesale manipulation of energy prices in California and other western states. He proposed that a special counsel be appointed to plumb the depths of energy suppliers’ improprieties in western markets, and the agency’s response.