Anderson Employees Destroy Enron Documents

Andersen has notified the U.S. Securities and Exchange Commission and the U.S. Department of Justice, and is also notifying congressional committees and other agencies investigating the Enron collapse, that in recent months individuals in the firm involved with the Enron engagement disposed of a significant but undetermined number of electronic and paper documents and correspondence relating to the Enron engagement.

In addition to notifying authorities, Andersen has suspended its current records management policy effective immediately and instructed all partners and personnel to retain all existing documents until further notice. The firm also has asked former U.S. Sen. John Danforth to conduct an immediate and comprehensive review of Andersen's records management policy and to recommend improvements.

The firm has assured the SEC, the Justice Department, congressional committees and other agencies that it will continue to cooperate fully with their investigations. After government agencies have had a full opportunity to consider these matters, Danforth also will advise the firm to ensure that all appropriate remedial and disciplinary actions have been taken.

Andersen's suspended document policy required in certain circumstances the destruction of certain types of documents. In recent months, documents, including electronic files related to the Enron engagement, were disposed of or deleted. Millions of documents related to Enron still exist, and the firm has successfully retrieved some of the deleted electronic files. The firm is continuing retrieval efforts through electronic backup files, and is continuing in its efforts to fully learn and understand all the facts related to this issue.