Andersen runs open letter on Enron
CHICAGO, Jan 16, 2002 (United Press International via COMTEX)
Arthur Andersen LLP Wednesday took out full-page ads in three major newspapers in a bid to restore confidence in the wake of the Enron debacle.
Andersen, one of the nation's Big Five public accounting firms, Tuesday fired the lead auditor for its Enron account and promised to discipline other employees following revelations that documents subpoenaed by the Securities and Exchange Commission had been destroyed.
In Wednesday's ads, which ran in the Wall Street Journal, New York Times and Washington Post, Managing Partner and CEO Joe Berardino reiterated the company's pledge to cooperate fully in the investigation into Enron's December bankruptcy -- the biggest in U.S. history.
"Last month, we voluntarily went before Congress and stated that an error in judgment had been made by Andersen personnel," Berardino wrote in an open letter. "We also said that steps would be taken to prevent a recurrence of these events.
"Since then, we have notified the U.S. Department of Justice, the U.S. Securities and Exchange Commission, several committees in Congress and other government agencies that documents and e-mails relating to our work for Enron were disposed of by Andersen personnel. We have subsequently recovered many of these documents from electronic sources and have provided the government with them.
"... Andersen will do what is right. We also want there to be no mistake about Andersen's willingness to take all appropriate steps necessary to maintain confidence in the integrity of our firm."
The letter goes on to pledge "comprehensive changes in our practices and policies" and called the Enron collapse "the most difficult and challenging episode in our firm's history."
Enron was in the midst of an $8.4 billion merger with rival Dynegy Inc. when its credit rating began to slip. Dynegy pulled out of the deal, forcing Enron to file for Chapter 11 bankruptcy Dec. 2. Enron shares were delisted by the New York Stock Exchange.
Enron, once a huge energy conglomerate, allegedly hid $500 million to $600 million in losses on its balance sheet.
Andersen Tuesday fired David B. Duncan, the leading auditor for the Enron account, and placed three other partners in the Houston office on administrative leave.
By MARCELLA S. KREITER
Copyright 2002 by United Press International. |
