An Arthur Andersen partner told employees at the audit firm it "would be great" to destroy documents before any legal action is filed to make them "irretrievable," according to a videotape showed at the firm's criminal trial yesterday. The tape played at the obstruction of justice trial showed Mr Michael Odom, risk manager for the accounting firm's Houston office, speaking to a training session for Andersen accountants on October 10th, weeks before a full government probe began in the Enron affair.
Mr Odom said destruction of documents was "a housekeeping issue that we don't do well" adding, "There is no need for anyone to retain anything once the audit is completed. Once litigation has been filed, we are not permitted to destroy anything. If it is destroyed in the course of normal policy, then litigation is filed the next day, that's great. It's destroyed ... it's irretrievable." The evidence could help prosecutors show Andersen was destroying Enron documents in anticipation of a subpoena from US authorities investigating irregular accounting before Enron's collapse last year. Also yesterday, a hand-written note from in-house Andersen lawyer Ms Nancy Temple presented in the trial showed she termed the Enron account "highly problematic" and could spell trouble with the Securities and Exchange Commission.
Ms Temple's notes from her desk calendarsaid: "We could be facing a charge of violating the cease and desist order in the Waste Management case ... \ violating the SEC injunction."
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