[DML] Andersen and De Lorean story on AOL

[njp548@xxxx]

Hey List,

Today I did a search on Delorean in the news section of AOL, and this is 
the story that popped up:

UK Enron questions turn to auditors Andersen

By Mike Peacock


LONDON (Reuters) - Questions about the British government's links with 
bankrupt energy trader Enron Corp. took a turn Tuesday with opposition 
politicians focusing on the Labor government's relationship with the firm's 
accountant, Andersen. 

In the United States, Andersen -- one of the "big five" accountants' firms -- 
is under pressure over its auditing of Enron and the destruction of thousands 
of documents. 

President Bush's administration is in the spotlight over its links with 
Enron, and British Prime Minister Tony Blair's government is now also facing 
scrutiny, with its relationship with Andersen the focus. 

Ties between Andersen and Britain's ruling Labor Party date from before the 
1997 election, when Labor was languishing in opposition. 

Trade and Industry Secretary Patricia Hewitt worked for Andersen's consulting 
arm from 1994 to 1997, when Labor won office. A number of the firm's 
employees were seconded to help the Labor machine before it took power. 

Although newspapers are crying "sleaze" over Enron and Andersen, a Blair aide 
said the government was squeaky clean. 

"Nobody has been able to point to a single fact in either of these cases ... 
that justifies such headlines," the aide said. 

HISTORY UNDER SCRUTINY 

Until Labor came to power in 1997, Andersen had been blacklisted from 
undertaking government work since the 1980s because of its role as auditor to 
the Northern Ireland-based automaker DeLorean, which, like Enron, collapsed. 

That ban was ended soon after Blair's party came to power and Andersen has 
since worked on various government projects. 

The previous Conservative government pursued Andersen in the courts for 
compensation, because of state money that was pumped into DeLorean and lost. 

Blair's official spokesman said Tuesday a government review of Andersen's 
status was in progress before the 1997 election. 

The review ended just before election day -- recommending the government 
settle out of court. Blair's predecessor, John Major, had no time to make a 
final decision, leaving the new Labor government to decide. 

Blair's aide said that after the 1997 election government lawyers called in 
an independent law lord to mediate. 

He ruled that Andersen should pay Britain 21 million pounds ($29.8 million), 
far less than what the previous government had wanted, without admitting 
liability. Both sides agreed. 

The Conservatives denied they would have ever let Andersen off the hook and 
have called for an inquiry. 

There have also been parliamentary questions about what government work 
Andersen had won since 1997. 

Blair's aide said that question would take "weeks to answer." 

Andersen would not comment Tuesday. 

As for the links with Enron, the Blair spokesman said, "We are being 
completely open about this." 

The government produced a blow-by-blow account Monday of meetings ministers 
had with executives of the collapsed Houston-based company and denied it 
tailored its policies in response. 

A Labor source said the party received no lump sums from Enron but that its 
European arm had bought tickets for party dinners and sponsored one event in 
the past, at a cost of 38,000 pounds ($53,710). 

Blair's spokesman said Enron executives met four ministers but that the 
government's energy policy hurt not helped Enron between 1998 and 2000 as it 
blocked new gas power stations to help the ailing coal industry. 

Critics say lobbying by Enron may have prompted a policy switch when the 
moratorium was ended in November 2000. 

But the government always said the block would only last as long as it took 
to implement reforms of the electricity market introduced in early 2001.