Arthur Andersen contracting cut after indictment

FROM THE ARCHIVE

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FRIDAY, MARCH 15, 2002

Failed energy company Enron and accounting firm Arthur Anderson have been suspended from entering into new federal contracts.

The General Services Administration has determined that both companies have not exhibited professional standards With regard to existing contracts, the GSA is still reviewing those.

The suspension, which can be appealed within 30 days, comes after Andersen was indicted yesterday by a federal jury on one count of obstruction of justice for allegedly shredding documents related to Enron. Enron went bankrupt last fall and subsequently fired Andersen as its accountant.

Andersen's suspension will last for the duration of its indictment. Enron's will last one year.

Additionally, current and former executives of both companies are barred from new contracts. Related subsidiaries are also included.

Andersen holds a number of contracts to conduct historical accounting projects for the Individual Indian Money (IIM) trust. According to department officials, the firm has completed one such accounting for members of a California tribe.

Get the Story:
GSA Suspends Enron and Arthur Andersen and Former Officials (GSA 3/15)
GSA Places Enron, Anderson on Suspension (The Washington Post 3/15)
GSA suspends accounting firm, Enron from doing business with government (AP 3/15)
Andersen Indicted in Shredding Probe (The Washington Post 3/15)
Andersen: One Player in Big Drama (The Washington Post 3/15)

Relevant Links:
Arthur Andersen - http://www.andersen.com
Enron - http://www.enron.com/corp