Andersen Enron auditor refuses to testify before Congress.

(24 Jan 2002)

1. Various former Arthur Andersen auditor David Duncan during swearing in at Congressional hearing
2. House Energy and Commerce Committee panel.
3. SOUNDBITE: (English) James Greenwood, Republican, Pennsylvania, Committee Chairman
"I have a specific question for you Mr. Duncan. You were fired by Andersen last week for orchestrating an expedited effort among the Andersen-Enron engagement team to destroy thousands of paper documents and electronic files relating to the Enron matter, after learning of an inquiry by the Securities and Exchange Commission into Enron's complex financial transactions. Did you give an order to destroy documents in an attempt to subvert governmental investigations into Enron's financial collapse, and if so, did you do so at the direction of suggestion of anyone at Andersen or at Enron?"
6. SOUNDBITE: (English) David Duncan, former Arthur Andersen auditor.
"Mr. Chairman I would like to answer the committee questions, but on the advice of my counsel I respectfully decline to answer the question based on the protection afforded me under the constitution of the United States."
7. SOUNDBITE: (English) James Greenwood, Republican--Pennsylvania, Committee Chairman
"Will you invoke your Fifth Amendment rights in response to all of our questions here today?"
8. SOUNDBITE: (English) David Duncan, former Arthur Andersen auditor
"Respectfully, that will be my response to all your questions."
9. Duncan standing and walking from hearing table
10. Panel
11. Arthur Andersen officials at hearing table
12. SOUNDBITE: (English) C.E. Andrews, Arthur Andersen managing partner
"On October 23rd, Mr. Duncan called a meeting to review our policy as it pertains to work papers and documents and other related material. At the conclusion of that meeting it appears that it led to a vast destruction of documents as a result of that."
13. SOUNDBITE: (English) James Greenwood, Republican--Pennsylvania, Committee Chairman
"Why didn't the top brass at Andersen immediately send out word to everyone in the company, particularly those involved in the Enron case obviously, to not touch a document, not shred a document. Why didn't that come down from the top immediately?"
14. SOUNDBITE: (English) C.E. Andrews, Arthur Andersen managing partner.
"Without the knowledge, without our knowledge, without the knowledge of the legal counsel, that meeting was called, that meeting was held, and they proceeded to destroy documents, without consultation, without inquiry as to whether it was proper or improper, and we find that situation appalling."
15. SOUNDBITE: (English) James Greenwood, Republican--Pennsylvania, Committee Chairman.
"And all of Mr. Duncan's superiors in the company, including Mr. Baradino, knowing this meltdown was happening at Enron, knowing that this SEC investigation, sat silently assuming that Mr. Duncan would do the right thing?"
16. SOUNDBITE: (English) C.E.Andrews, Arthur Andersen managing partner.
"We were not, superiors were not aware of the meeting that took place on October 23rd to the best of my knowledge. So he (Duncan) directed the action. We find that action totally unacceptable"
17. Wide shot of Enron hearing
18. Close shot of U.S. Federal Reserve Chairman Alan Greenspan during Senate budget hearing
19. Medium shot of hearing
20. SOUNDBITE: (English) Alan Greenspan, Chairman, U.S. Federal Reserve.
"We are increasingly getting firms which are conceptual, and Enron being a classic case, whose value depends increasingly on reputation and trust. And if you breach that, that value goes away very rapidly."
17. Wide shot of House Enron hearing



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