Sat, Feb 16, 2002 - Page 6 News List

Witness says Lay was `duped'

WHISTLE-BLOWER The woman who raised alarms about the company's financial troubles says two top executives attempted to keep founder Kenneth Lay in the dark

BLOOMBERG , WASHINGTON

That day, Enron declared a US$618 million loss in the third quarter and Lay said termination of one of the partnerships was wiping out US$1.2 billion in shareholder equity.

Watkins also challenged Skilling's assertion that he wasn't required to sign approval sheets for the partnership transactions.

"No deal could be done without all those approvals," she said, backing up testimony last week by Enron lawyer Jordan Mintz.

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