Scandal Analysis: Enron, Arthur Andersen and Other Officials
Scandal Analysis: Enron, Arthur Andersen and Other Officials
Washington, DC --The General Services Administration today suspended Enron Corp., related Enron corporate entities, several former Enron officials, Arthur Andersen, LLP, and a former Andersen official, from conducting new business with the Federal government. The suspension is for a period of 12 months for all parties except for Andersen, whose suspension is for the duration of the indictment. GSA's review of other Enron subsidiaries, and other Enron and Andersen officials continues.
Regarding Enron's suspension, GSA took this action based on a finding of adequate evidence that the Enron parties had engaged in misconduct and committed internal control irregularities that seriously affect their suitability to receive Government contracts. Under law and regulation the Government may award contracts only to responsible contractors. To qualify as a responsible contractor, a company or individual must have a satisfactory record of integrity and business ethics and must possess the necessary organization, accounting and operational controls.
Regarding Andersen's suspension, GSA took this action based upon an indictment released yesterday. The indictment alleges that Andersen, at numerous locations throughout the world, knowingly, intentionally, and corruptly destroyed documents and other information relating to Andersen's work for Enron, and that these actions were taken to impair official proceedings. Under federal law, an indictment for such a criminal offense is adequate evidence of misconduct to support suspension of a government contractor.
The names of the entities and individuals suspended are published in the List of Parties Excluded From Federal Procurement and Non Procurement Programs. This publication contains the names of contractors debarred, suspended, proposed for debarment, or declared ineligible by any agency of the Federal Government. The suspension is effective throughout the executive branch of the Federal Government and applies to all new business with the Federal government. The suspended entities and individuals are:
Enron Corp.
Arthur Andersen, LLP
Enron North America Corp.
Portland General Electric Company
Williard, Inc.
Enron Energy Services Operations, Inc.
Clinton Energy Management Services, Inc.
Enron Energy Services, Inc.
The Bentley Company
Richard B. Buy, former Enron Senior Vice President and Chief Risk Officer
Richard A. Causey, former Enron Senior Vice President and Chief Accounting Officer
David B. Duncan, Arthur Andersen's Chief Auditor for the Enron engagement
Andrew S. Fastow, former Enron Chief Financial Officer
Ben F. Glisan, Jr., former Enron Treasurer
Michael J. Kopper, former Managing Director of Enron's Global Equity Markets Group
Kenneth L. Lay, former Enron President, Chief Executive Officer, and Chairman of the Board
Jeffrey K. Skilling, former Enron President, Chief Executive...