- Pedestrian killed during traffic collision on I-55 (10/23/16)6
- Scott County Sheriff Rick Walter faces challenge from criminal investigator Wes Drury (10/21/16)8
- Shooting injures two people in Cape early Tuesday (10/19/16)34
- 18-year-old killed in one-car crash Thursday morning (10/21/16)1
- Man arrested after dispute at school spurs brief lockdown (10/21/16)6
- 'I feel for them' (10/20/16)1
- Perry County: A great place to find home away from home (10/14/16)
- Tours provide a glimpse of Cape Girardeau's supposedly haunted past (10/17/16)1
- Crews are working on the new Drury Hotel (10/21/16)4
- Benton man accused of statutory rape, selling pot (10/20/16)1
White House orders review of companies' contracts
WASHINGTON -- Embattled Enron Corp. and the Arthur Andersen accounting firm, already being investigated by Congress and law enforcement agencies, now will have their $70 million in U.S. government contracts put under scrutiny.
The White House on Friday ordered a government-wide review to determine whether the bankrupt energy trading company and its longtime auditors, both accused of massive destruction of documents in the face of federal subpoenas, are worthy of government business.
The order came a day after senior officials of Andersen appeared under subpoena at a congressional hearing where lawmakers denounced the destruction of Enron-related documents at the Big Five accounting firm. Andersen officials blamed the fired chief auditor of the Enron account, who invoked his Fifth Amendment right against self-incrimination and refused to answer questions.
In a letter to the General Services Administration, which oversees government contracts, White House budget director Mitchell Daniels said charges of document shredding, manipulative accounting practices and other activities "could reflect poorly" on the companies and their ability to meet government ethics standards.
Both companies have large contracts with the Justice Department, which is investigating their activities for potential criminal wrongdoing. The Securities and Exchange Commission has been pursuing a civil investigation since Oct. 31.