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CNN Live At Daybreak

Enron Executives Causey, Buy Fired

Aired February 15, 2002 - 06:05   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Two Enron executives that refused to testified before Congress last week, they've been fired.

As CNN's Mark Potter reports, the two were brought down by an in- house investigation.

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MARK POTTER, CNN CORRESPONDENT (voice-over): Richard Causey, the man on the right, was Enron's chief accounting officer. Richard Buy was the chief risk officer. Last week both refused to testify before a House subcommittee investigating Enron's collapse, and its intricate financing.

UNIDENTIFIED MALE: Let me clear Mr. Causey, are you refusing to answer the question on the basis of the protection supported to you under the Fifth Amendment to the U.S. Constitution.

UNIDENTIFIED MALE: Yes sir, I am.

POTTER: In a news release, Enron's new management team announced both men were fired effective immediately. The company said their termination was linked to the Powers' report, an investigation of Enron commissioned by its Board of Directors and critical of Causey and Buy.

The man who led the investigation said Causey should have sounded the alarm over the off-the-books transactions used to hide huge losses at Enron.

WILLIAM POWERS, JR, CHAIRMAN INVESTIGATIONS COMMITTEE: These were not real transactions, and he was the chief accounting officer and should, and I think did - he certainly knew about the nature of the - of the transaction, and they as subsequently turned out, that structure made the company extremely fragile economically, because it wasn't solidly backed, and he should have warned the board about that. He should have talked with senior management about it.

POTTER: The Powers' report said Richard Buy, the former risk officer, also failed to renew and properly oversee the controversial Enron partnerships. In her testimony, Enron Vice President Sherron Watkins said Chairman Kenneth Lay was duped by CEO Jeffrey Skilling and Chief Accounting Officer Richard Causey. REP. BILLY TAUZIN (R), LOUISIANA: You're saying that Mr. Lay was wrong to trust Mr. Skilling and Mr. Fastow and Mr. Causey with these details.

WATKINS: Yes sir, I do believe they misserved Mr. Lay, the Board, Enron, and its shareholders.

POTTER: Lawyers for Causey and Buy could not be reached for comment.

(on camera): With the firings of Causey and Buy almost all of Enron's top management facing investigation after the company's collapse are now gone.

Mark Potter, CNN, Houston.

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