The curse of Enron

Enron is the most infamous and mind-boggling financial scandal ever seen. It has decimated the money markets more effectively than the best efforts of Osama bin Laden, Saddam Hussein or even Norman Lamont.

The effects of its collapse have been wide-ranging. Its auditor, Andersen, has gone. Its shareholders and staff were left out of pocket. The public may hold responsible for the company's collapse its top executives, such as Kenneth Lay, former chief executive and chairman, and Jeffrey Skilling, former president and also chief executive. They may yet face the law. There are several people who have been legally bludgeoned, but they tend to be on the sidelines. Enron seems to have been tainted by a deadly curse, any association with the company leading to dire problems.

The most recent victim is Colin Skellett, the respected and loyal head of Wessex Water, who was arrested on Thursday on suspicion of corruption. Mr Skellett has run Wessex Water since 1988, guiding the utility through its 1998 sale to Enron and its subsequent £1.2bn sale to a Malaysian company, YTL Power, earlier this year.

Fraud Squad officers in the City of London suspect that the decision to sell Wessex to YTL was swayed by a £1m bribe paid to Mr Skellett to accept the deal. YTL had beaten Royal Bank of Scotland, which had been considered to be the front-runner for the bid.

YTL claims no knowledge of any illegal payments, and Wessex says the payment was perfectly legitimate and part of a consultancy agreement. It also said no directors played any part in the decision to buy YTL. The case is not thought to be connected with the main Enron scandal.

Other folk affected by the curse are three former NatWest bankers charged with defrauding their employer of £5m by the US Justice Department. Giles Darby, David Bermingham and Gary Mulgrew were involved in creating off-balance sheet structures with Enron, and through this process, allegedly siphoned off money that should have gone to the bank.

Despite the Congressional hearings and the sight of former Enron executives holding up their palms and giving evidence, just one man has been charged so far. He is Michael Kopper, and he wasn't even one of the big cheeses. As head of Enron Global Finance he was involved in the development of the off-balance sheet structures that contributed to Enron's downfall, but he was one below Andrew Fastow, the former chief financial officer.

It is strange that while anyone who ever dealt with Enron may look over their shoulder for fear of the curse, the chiefs have managed to dodge it.