Andersen bosses facing jury

ACCOUNTANCY firm Andersen's top management were last night preparing to defend themselves against criminal charges of destroying 'literally tons' of documents related to the collapse of energy group Enron.

The case, in a court in Houston, Texas, is the first to follow the bankruptcy of Enron, which came after it admitted artificially inflating profits and hiding debts. Andersen, which audited Enron, is reeling from the affair. More than 200 clients worldwide have quit.

One hundred potential jurors were called on Monday for selection in a process expected to take at least a day. Eighteen were ruled out because they knew Andersen staff, while 21 had links with Enron. A guilty verdict would be fatal as Andersen would be barred from auditing public companies. Legal sources said a settlement was still possible.

The key prosecution witness is David Duncan, a former Andersen partner, who has pleaded guilty to shredding the documents. Meanwhile, former Federal Reserve chairman Paul Volcker, who had been hired to rescue the firm, said he had all but abandoned the task.