Congressional investigators will subpoena senior officials of the Arthur Andersen LLP auditing firm, including the chief executive and a fired auditor, in an effort to force their testimony today about the destruction of documents related to failed energy giant Enron Corp.
Ken Johnson, spokesman for the House Energy and Commerce Committee, said the panel's chairman, Representative Billy Tauzin, would sign the four subpoenas Tuesday night.
Subpoenas are going to Andersen chief executive Joseph Berardino, fired auditor David Duncan, attorney Nancy Temple and risk manager Michael Odom.
Duncan was dismissed by Andersen last week for his role in the extensive destruction of Enron-related documents after federal regulators began investigating possible irregularities in the failed energy company's accounting.
Enron entered the largest bankruptcy in US history on Dec. 2.
Robert Giuffra, one of his attorneys, said Tuesday evening that no decision had been made on whether Duncan would testify. "We have not received a subpoena," he said.
Temple and Odom, while expressing willingness to testify, have raised concerns about protecting confidential information relating to the investigation, Johnson said.
He noted that the firm's chief executive had been interviewed over the weekend on television.
"He should be able to find the time to appear at a congressional hearing. ... No one's getting a free pass on this one," Johnson said.
Berardino voluntarily testified at the first congressional hearings on Enron last month, defending Andersen's work for Enron but acknowledging that financial reporting practices must change. He said Andersen notified Enron's audit committee on Nov. 2 of "possible illegal acts within the company." Berardino did not mention the document shredding. More recently, he said executives of the Chicago-based firm didn't learn of the destruction until shortly after New Year's.
Patrick Dorton, an Andersen spokesman, said, "We have not received a subpoena. We have told the committee that we would testify but the only question is when."
News of the planned subpoenas came as FBI agents and federal prosecutors entered Enron's Houston headquarters to investigate allegations that massive document destruction took place at the company starting in late November and continuing until as recently as last week.
The Securities and Exchange Commission started looking into Enron's accounting in mid-October, after the company reported a third-quarter loss of more than US$600 million. The SEC's inquiry eventually included demands for financial documents from Enron and Andersen.
In a sprawling inquiry with both financial and political overtones, 11 House and Senate committees are investigating the Enron debacle, while the Justice Department and the SEC pursue their own less visible probes.
President George W. Bush urged Congress on Tuesday not to be distracted by the Enron investigation.
A Chinese freighter that allegedly snapped an undersea cable linking Taiwan proper to Penghu County is suspected of being owned by a Chinese state-run company and had docked at the ports of Kaohsiung and Keelung for three months using different names. On Tuesday last week, the Togo-flagged freighter Hong Tai 58 (宏泰58號) and its Chinese crew were detained after the Taipei-Penghu No. 3 submarine cable was severed. When the Coast Guard Administration (CGA) first attempted to detain the ship on grounds of possible sabotage, its crew said the ship’s name was Hong Tai 168, although the Automatic Identification System (AIS)
An Akizuki-class destroyer last month made the first-ever solo transit of a Japan Maritime Self-Defense Force ship through the Taiwan Strait, Japanese government officials with knowledge of the matter said yesterday. The JS Akizuki carried out a north-to-south transit through the Taiwan Strait on Feb. 5 as it sailed to the South China Sea to participate in a joint exercise with US, Australian and Philippine forces that day. The Japanese destroyer JS Sazanami in September last year made the Japan Maritime Self-Defense Force’s first-ever transit through the Taiwan Strait, but it was joined by vessels from New Zealand and Australia,
SECURITY: The purpose for giving Hong Kong and Macau residents more lenient paths to permanent residency no longer applies due to China’s policies, a source said The government is considering removing an optional path to citizenship for residents from Hong Kong and Macau, and lengthening the terms for permanent residence eligibility, a source said yesterday. In a bid to prevent the Chinese Communist Party (CCP) from infiltrating Taiwan through immigration from Hong Kong and Macau, the government could amend immigration laws for residents of the territories who currently receive preferential treatment, an official familiar with the matter speaking on condition of anonymity said. The move was part of “national security-related legislative reform,” they added. Under the amendments, arrivals from the Chinese territories would have to reside in Taiwan for
CRITICAL MOVE: TSMC’s plan to invest another US$100 billion in US chipmaking would boost Taiwan’s competitive edge in the global market, the premier said The government would ensure that the most advanced chipmaking technology stays in Taiwan while assisting Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in investing overseas, the Presidential Office said yesterday. The statement follows a joint announcement by the world’s largest contract chipmaker and US President Donald Trump on Monday that TSMC would invest an additional US$100 billion over the next four years to expand its semiconductor manufacturing operations in the US, which would include construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center. The government knew about the deal in advance and would assist, Presidential
RSS