A Senate subcommittee concluded the board of directors of Enron Corp. "knowingly allowed Enron to engage in high-risk accounting," Timemagazine alleged on its web site today.
In a report, the subcommittee also said the board was aware of matters that included off-ledger deals, conflicts of interest and excessive compensation for top officers but did little or nothing about it. The magazine said it obtained a copy of the report.
Houston-based Enron, which once ranked as the world's largest energy trader, declared bankruptcy last December after its stock collapsed amid allegations that Enron accountants hid corporate debt to boost overall profits.
Elections this November and Enron's status as a major backer of President Bush's 2000 campaign have injected a strong undercurrent of politics into the task of assigning blame for Enron's collapse and for a surge in energy prices in California.
Mr Bush was to deliver a speech on Tuesday to "restore the faith and integrity of American business." He has decried corporate attempts to "fudge the numbers."
Meanwhile, the Senate was scheduled this week to take up legislation for stricter corporate accounting standards.
According to the posting on time.com, subcommittee chairman Mr Carl Levin, a Michigan Democrat, faulted the directors for failing to acknowledge their share of the blame, but a lawyer for the board said the report very unfair.
