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NATIONAL
Enron executive claims
files have been shredded
By William Neikirk
Chicago Tribune
WASHINGTON (KRT) — A for
mer Enron Corp. executive said
Monday that company docu
ments were destroyed at its Hous
ton headquarters even after the
federal government began inves
tigating the firm’s spectacular col
lapse last fall.
The startling accusation of
document shredding prompted
Enron’s attorney, Robert Bennett,
to say that the company would
immediately look into the allega
tion made by former executive
Maureen Castaneda in an ABC
News interview.
Displaying a box of shredded ma
terial, Castaneda, identified by ABC
as the former director of Enron’s for
eign investments section, said the
document destruction began after
Thanksgiving and continued as late
as last week in the 19th-floor ac
counting office of the company’s
Houston headquarters. She said she
got the box of paper to use for pack
ing material and that there were “a
lot more” boxes like the one she
showed on the air.
Federal authorities and congres
sional committees are already in
vestigating the shredding of docu
ments by Enron’s auditor, Andersen
LLP, in connection with Enron’s
failure. The revelations that Enron
may have done the same thing
added a new dimension to the bur
geoning scandal.
“It’s one thing to make bad busi
ness decisions; it’s another thing to
cover up bad business decisions,”
said Ken Johnson, spokesman for
Rep. Billy Tauzin, R-La., chairman
of the House Energy and Com
merce Committee, one of the pan
els investigating the firm. “If it’s
true, this is an even bigger mess
than we thought.”
Johnson said the committee un
doubtedly would look into the
new allegation and probably call
Castaneda to testify. Meanwhile,
the panel will hold a session
Thursday to hear evidence on the
shredding of documents at Ander
sen, and is threatening to force a
former Andersen auditor, David
Duncan, to testify. Duncan has
sought a postponement.
Castaneda told ABC she found
shredded paper with references to
some of Enron’s controversial busi
nesses partnerships, such as Jedi,
which the firm used to hide mil
lions of dollars in debt.
“A lot are accounting docu
ments,” she added. “You can tell be
cause of the colors yellow and
pink.”
“I left the second week of January,
and the shredding was going on un
til the day I left, and I have no idea if
it continues,” said Castaneda, who
worked across the hall from the ac
counting office.
Bennett issued a statement after the
broadcast, saying that “we are investi
gating the circumstances of the re
ported destruction of documents. In
October, the company issued several
directives to all Enron employees
worldwide that all relevant docu
ments should be preserved in light of
pending litigation. If anyone violated
these directives, they will be dealt
with appropriately. ”
The Securities and Exchange
Commission began investigating
Enron in mid-October, and this
month the Justice Department said
it had opened a criminal investiga
tion. Other federal agencies are
looking into various aspects of En
ron’s collapse. A number of com
mittees on Capitol Hill have
launched their own probes.
Enron’s demise has political sig
nificance in that the firm was an ac
tive contributor to political cam
paigns, especially those of
President Bush. The firm gave
money to both parties and lobbied
extensively for its causes in the na
tion’s capital.
The investigations cover not
only the shredding of documents,
but also the possibility of criminal
behavior in the use of partnerships
to hide the true financial condition
of the company from investors.
Some congressional Democrats
also allege that the Bush adminis
tration’s energy policy was heavily
influenced by Enron and its top
executive, Kenneth Lay.
The shredding of documents
also is becoming a major issue in a
suit against Enron’s board and its
officers. William Lerach, attorney
for plaintiffs who have sued the
firm’s board and its officers, said
he plans to take the box of shred
ded documents to federal court,
according to The Associated Press.
“They even shredded on Christ
mas Day,” Lerach told the AP.
Chicago Tribune correspondent
Flynn McRoberts in Houston con
tributed to this report.
©2002, Chicago Tribune. Distributed by
Knight Ridder/Tribune Information Services.
King supporters favor non-violence
By Dahleen Glanton
Chicago Tribune
ATLANTA (KRT) — Rev. Martin
Luther King Jr.’s birthday was cel
ebrated across the country Monday
in typical fashion: glittery parades,
fiery ecumenical services and a
proclamation signed by President
Bush. But beneath the surface of
this year’s tribute to King, a man
who devoted his life to non-violent
social change, there was a rum
bling of discontent among civil
rights activists who believe the
war in Afghanistan is wrong.
Though King supporters refused
to use the holiday as a platform for
their stance, there is a growing sen
timent among those who believe in
King’s philosophy that war under
almost any circumstance is unac
ceptable and that the military use
of force in Afghanistan must stop.
“I believe that (King) would feel
the same as I do, that we would
like to see our country take the
moral high ground and try to bring
those people to justice and address
the issue of terrorism through
diplomatic and law-enforcement
channels rather than so much
bombing and killing,” said Rev.
Joseph Lowery, who co-founded
the Southern Christian Leadership
Conference with King. “The gov
ernment has the responsibility to
make the nation safe, but the
means by which we respond de
fines us more than what our ene
mies do to us.”
Since the Sept. 11 terrorist at
tacks, some high-profile civil rights
leaders have engaged in a delicate
balancing act, weighing their long
time commitment toward non-vio
lence with the nation’s overwhelm
ing support for the president’s call
to war against those nations that
support terrorism.
During an ecumenical service at
Atlanta’s Ebenezer Baptist Church,
attended by First Lady Laura Bush,
there was barely a mention of the
war on terrorism. However, Coret
ta Scott King, the civil rights
leader’s widow, as well as former
U.N. Ambassador Andrew Young
and others have quietly stated in
recent months that war conflicts
with King’s teachings.
King, a recipient of the Nobel
Peace Prize in 1964, preached the
philosophy of non-violence as a
way of life. And many of his sup
porters said those words are as
relevant today as they were when
King spoke out against the Viet
nam War in the 1960s, drawing
the ire of President Lyndon John
son as well as many prominent
African-Americans.
“I thought we made progress on
war, but it looks like the situation
with us is getting worse,” Young,
a King protege, said during a tele
vised fireside chat with civil
rights leaders in Atlanta in Sep
tember. “Dr. King said the bombs
you drop in Vietnam will explode
at home. The bombs we drop on
the Middle East will explode at
home quicker.”
On the same program, Coretta
King, an acknowledged pacifist,
said: “I shudder to think of the
prospect of war, an endless cy
cle of war is what we will be get
ting into.”
Lowery, who worked at King’s
side during the civil rights move
ment, said the slain leader would
be “saddened by the fact that we
still resort to so much violence both
domestically and internationally.”
Groups in Atlanta have protest
ed against expanded racial profil
ing supported by the Bush admin
istration, fearing that it could be
unjustly applied to blacks.
In Washington, Black Voices
for Peace on Monday held a five
hour assembly of community or
ganizers at the Metropolitan AME
Church to plan a national cam
paign seeking a new U.S. foreign
policy promoting permanent
peace and organizing support for
those unemployed because of the
Sept. 11 terrorist attack and the
anthrax crisis.
Martin Luther King III, head of
the SCLC, said during a King cele
bration in Knoxville, Tenn., last -
week that more than 33 years after
his father’s death, his goal of elimi
nating racism, poverty and vio
lence remains a dream. He urged
Americans to observe his father’s
holiday by “doing something that
will uplift the dream and make the
dream become a reality.”
In Boston, King’s eldest daugh
ter, Yolanda, told 1,500 people at
the city’s largest annual MLK
Memorial Breakfast, that Sept.
11 had erased racial differences
— for now.
“Skin color was covered by
the ash of burning towers,” she
said. “Perhaps the best response
to this tragedy is not to go back
to normal.”
Chicago Tribune correspondent
Glen Elsasser and Tribune news
services contributed to this report.
©2002, Chicago Tribune. Distributed by
Knight Ridder/Tribune Information Services.