Enron investigates alleged shredding of papers

Enron is looking into the alleged destruction of documents at its Houston headquarters after the federal government began investigating…

Enron is looking into the alleged destruction of documents at its Houston headquarters after the federal government began investigating the company.

In an interview with ABC News, a former Enron executive, identified as Ms Maureen Castaneda, said the shredding of documents took place in an accounting office on the 19th floor.

She said the destruction began in late November and continued to at least last week. Ms Castaneda displayed one box of the shredded material, which "I got . . . when I was leaving work to basically use . . . for packing material".

"There were . . . a lot more than this," she said, standing next to the box. She said some of the shredding may have occurred as recently as this month.

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The Securities and Exchange Commission began looking into Enron, the world's largest energy trading company, in mid-October.

"We are investigating the circumstances of the reported destruction of documents," Washington attorney Mr Robert Bennett, who is representing Enron, said in a statement.

"In October 2001 the company issued several directives to all Enron employees worldwide that all relevant documents should be preserved in light of pending litigation," Mr Bennett said. "If anyone violated those directives, they will be dealt with appropriately."

The alleged shredding at Enron follows allegations over the past week and a half about document destruction at Arthur Andersen, Enron's accounting firm.