BusinessBusiness RecoveryPwC may still sue Andersen

PwC may still sue Andersen

PricewaterhouseCoopers, administrator to Enron Europe, is still considering whether to take legal action against Andersen's UK partnership for its role as auditor to the collapsed energy giant.

The Andersen London office has been cited in the US Justice Department’s indictment for its role in the shredding of Enron documents.

Steven Pearson, PwC administrator, said: ‘We will look at the role Andersen played in Europe.

The issue I’d look at is if Andersen failed in its responsibilities to the companies, it was responsible too.’

The review comes as the ICAEW launched its own inquiry this month into conduct by Andersen’s London offices by ‘seeking evidence’ from the US Department of Justice.

But Andersen UK has said there was ‘no evidence any material Enron-related documents connected to the work of the UK firm was deliberately destroyed’.

John Ormerod, Andersen senior managing partner, said last week UK partners were safe from claims in the US.

Meanwhile, administrators’ inquiries into six-figure bonuses received by senior executives at the London subsidiaries of Enron are ongoing. Administrators are reviewing whether the bonuses were ‘fraudulent’. Pearson, said: ‘If assets for creditors were depleted then on the face of it that is something you’d look into. If that’s not the case then it is not fraudulent.’

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