Enron, Adelphia miss SEC deadline

Link: Fight against accounting oaths fades

They are part of a group of 16 companies out a total of 691 that did not submit oaths but instead filed ‘explanations or other forms of certification’.

Enron submitted its explanation on the 14 August. In it its interim chief financial officer Stephen Cooper said no report contained an ‘untrue statement of material fact’ but said the current management of Enron ‘lacked the requisite knowledge to make any certification with respect to Pre-Petition filings’.

Adelphia, whose founder John Rigas and other members of his family have been arrested on charges of criminal fraud, said it could not make sworn statements. Its CEO and CFO said as a result of the actions of former management of the company it had not completed a financial report for the year or received the independent auditors report.

The accounting oaths apply to companies that have revenue exceeding $1.2bn.

All but one – a company in liquidation – of the 16 companies that did not file on 14 August have been given extensions.

SEC chairman Harvey Pitt said he was pleased with the outcome: ‘The certification procedures for America’s largest companies have had the desired effect.

‘We wanted assurances that senior corporate executives are taking personal responsibility for their companies’ filings and personally stand behind the accuracy of their companies’ reported numbers.’

Related reading