Tags: Enron | Fires | Arthur | Andersen

Enron Fires Arthur Andersen

Thursday, 17 January 2002 12:00 AM

In a statement, Enron Chairman Kenneth Lay said, "While we had been willing to give Andersen the benefit of the doubt," until the board had completed its investigation, "we can't afford to wait any longer in light of recent events, including the reported destruction of documents by Anderson personnel and the disciplinary actions taken against several of Andersen's partners working in the Houston office."

Andersen, with 75,000 employees worldwide, is the largest accounting firm in the country. After Enron's sudden collapse last year, going from one of America's largest and most profitable energy companies to a bankruptcy court last December, the auditor and its client have faced charges of wrongdoing from Enron employees and congressional investigators.

Andersen officials testified before a congressional committee in December that its auditors had come to believe that Enron had formed partnerships that had hidden several hundred million dollars in debt from investors, and then not provided Andersen with complete information.

After the launch of federal and congressional investigations, Andersen acknowledged that it had destroyed a large number of documents and electronic files pertaining to the Enron account. It also took disciplinary action against several auditors assigned to the account.

Enron, too, has faced disclosures that senior company officials warned Lay last summer that they believed the partnerships the company had formed were illegally disguising the company's debt.

When Enron collapsed, thousands of employees not only lost their jobs but saw their savings, invested in company stock, wiped out.

Copyright 2002 by United Press International.

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In a statement, Enron Chairman Kenneth Lay said, While we had been willing to give Andersen the benefit of the doubt, until the board had completed its investigation, we can't afford to wait any longer in light of recent events, including the reported destruction of...
Enron,Fires,Arthur,Andersen
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2002-00-17
Thursday, 17 January 2002 12:00 AM
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