Washington — The White House on Friday ordered a review of $70 million worth of federal contracts with Enron Corp. and the Arthur Andersen accounting firm to determine whether the embattled companies are worthy of government business.
In a letter to the General Services Administration, which oversees government contracts, budget director Mitchell E. 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.
"These agencies should ensure that existing contracts with Arthur Andersen and Enron are being performed in accordance with contract terms and proper business practices," Daniels wrote. Both companies have large contracts with the Justice Department, which is investigating their activities for potential criminal wrongdoing.
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