Friday, January 11, 2002

Following is the text of a letter from House Energy and Commerce Committee Chairman Billy Tauzin (R-La.) and Oversight and Investigations Subcommittee Chairman James Greenwood (R-Pa.) to Andersen Managing Partner and CEO Joseph Berardino.

January 11, 2002

Mr. Joseph F. Berardino
Managing Partner and Chief Executive Officer
Andersen LLP
33 W. Monroe Street
Chicago, Illinois 60603

Dear Mr. Berardino:

As you know, on December 13, 2001, the Committee on Energy and Commerce requested that Andersen produce certain records relating to its audit work for the Enron Corporation. While some of the requested materials have been made available to Committee investigators, other responsive documents have not yet been produced, and B as revealed to our investigators yesterday -- thousands of other responsive documents were knowingly destroyed by Andersen employees working on the Enron engagement, apparently prior to such request.

Given that Committee investigators will soon begin interviewing Andersen employees about these matters, we are writing to you today to confirm our investigators' earlier oral requests, and to make several additional requests, that certain categories of specific information receive priority attention from Andersen as it seeks to complete its response to the Committee. Accordingly, please produce the following information to the Committee by the dates specified below:

1. The name and title of each Andersen employee working on the Enron audit engagement since January 1, 1997, specifying those individuals involved in the auditing of Enron SPEs.

2. The name and title of each Andersen employee in its national professional standards group who was consulted with respect to the auditing of Enron SPEs since January 1, 1997.

3. All Enron-related records in the files (including desk, computer and e-mail files) of the Andersen partner-in-charge of the Enron account (David Duncan), as well as the files of (i) the next five most senior audit partners working on this account, and (ii) individuals named in response to Request No. 2 above.

4. All records relating to the Enron Chewco SPE transaction, including but not limited to the records supporting Andersen's determination that there was a 3% outside equity interest in that partnership.

5. All records of Andersen's national professional standards group in Chicago relating to the treatment of Enron SPEs, including but not limited to records relating to communications between this group and the Andersen Enron engagement team in Houston.

6. With respect to the recent disclosure regarding destruction of Enron-related documents, please provide: (i) all Andersen document retention policies promulgated after January 1, 1997; (ii) a copy of the August 2001 quarterly reminder/notice issued by Andersen to its employees about such policy; (iii) a copy of all subsequent reminders/notices issued to anyone involved in the Andersen Enron engagement (including the October 12, 2001 record, and subsequent record sent to the Andersen professional standards group in Chicago, as specified by Andersen yesterday); (iv) the name or names of the individuals who directed or requested that such reminders/notices be issued; (v) all records created by or sent to anyone involved in the Enron engagement relating to any meeting, discussion, or communication regarding destruction or retention of documents; (vi) the November 2001 document retention order issued by Andersen in the wake of the SEC subpoena for documents dated November 8, 2001; and (vii) the document retention policy suspension order issued by Andersen in the wake of the recent revelation of document destruction.

7. All records that had been destroyed by Andersen employees involved in the Enron engagement (including those in Andersen's professional standards group in Chicago), but have since been retrieved or reconstructed in some manner. Please note that this request is of a continuing nature, so that as Andersen retrieves or reconstructs additional documents, such documents should be provided promptly to the Committee.

8. The dates upon which Andersen's Office of General Counsel, or other management officials, first learned that (i) reminders/notices relating to document retention policies had been sent to individuals involved in the Enron account; and (ii) documents relating to the Enron account had in fact been destroyed or disposed of pursuant to such reminders/notices, or otherwise.

Please provide responses to Request Nos. 2-4 and 6-8 by close of business Monday, January 14, 2002, and the remainder of the requested information by Friday, January 18, 2002. For purposes of responding to the above requests, the terms "records" and "relating" should be interpreted in accordance with the attachment to the Committee's December 13, 2001 letter. If you have any questions about these requests, please contact Mr. Mark Paoletta, Chief Counsel for Oversight and Investigations, at (202) 225-2927.

We expect that Andersen will promptly comply with the above requests, and otherwise fully cooperate with the Committee as it pursues matters relating to your company's work on behalf of Enron.

Sincerely,

W.J. Billy Tauzin
Chairman

James Greenwood
Chairman, Subcommittee on Oversight and Investigations

cc:
The Honorable John D. Dingell, Ranking Member
The Honorable Peter Deutsch, Ranking Member
Subcommittee on Oversight and Investigations
Michael Carroll, Esq.