Subject: India Internal Controls Assessment & Review and Cash Controls Standards
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Sun, 12 Nov 2000 23:44:00 -0800 (PST)

Rick,

This is disturbing.  I can not understand how an HR employee for an Enron 
business unit can deny access to what appears to be an Enron auditor on the 
grounds that the records being sought are confidential.  As you know Sanjay 
reports to both Ken and myself in support of EBS Asia activities as well as I 
believe McDonald for Global Assets.  Given this split accountability, and the 
fact that I do not know which business unit these records apply to, you as a 
representative of Corp should probably require that Enron be given access to 
these records as part of your audit responsibilities.  If you think it 
appropriate for me to make the request I will be happy to do so.

Kevin

----- Forwarded by Kevin Hannon/Enron Communications on 11/13/00 07:35 AM 
-----

	Juan Camarillo@ENRON
	11/13/00 01:38 AM
		 
		 To: Sanjay Bhatnagar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ken Rice/Enron 
Communications@Enron Communications, Kevin Hannon/Enron Communications@Enron 
Communications
		 cc: John Berggren/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Milind 
Laad/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Carol 
Howes/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sandip 
Malik/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 Subject: India Internal Controls Assessment & Review and Cash Controls 
Standards

India Management,

We are in the process of conducting a follow-up of the Internal Controls 
Review that was conducted last year at EIPL.  We are also conducting a 
compliance review of the Cash Controls Standards that were recently issued by 
Enron Assurance Services.  On November 3rd, we informed Milind Laad, EIPL 
Controller, and Carol Howes, Sr. Dir. Fin. & Acctg., that we would be 
conducting a visit to EIPL to perform the follow-up Internal Controls Review 
and a Cash Controls Standards audit.  An Internal Controls Review entails 
reviewing not only financial areas but other departments such as legal, IT, 
operations, etc.  

We started our testing late last week and were informed that supporting 
documentation for certain accounting transactions reside in HR.  We then 
scheduled a meeting with the head of HR, Sandip Malik, to request supporting 
documentation for the transactions and other information that is more 
relevant to HR as part of our Controls Review.   Mr. Malik denied access to 
the records on the basis that they are confidential.  Apparently, not even 
the Controller has access to some of the supporting documentation.  Mr. Malik 
stated that we needed to give him a request list, so he could clear it with 
Sanjay Bhatnagar.  We informed him that we could not give him a list but 
needed general access because we did not want to go  back and forth with 
lists given my limited time here in India and logistical difficulties in 
communicating with Mr. Bhatnager.  Mr. Bhatnager apparently was on vacation 
and now is travelling to Houston.  Given the time difference, I am requesting 
that Mr. Bhatnagar or one of the upper management executives responsible for 
India send a communication to Mr. Malik and instruct him to give me access to 
the Enron Records.  

I apologize for the inconvenience, but I had not previously experienced the 
situation where I was not given initial access to the records.  I am also 
interested in obtaining access to the payroll records for Arthur Andersen so 
they can test the project allocations developed by HR.    

Thank you,

Juan Camarillo
Manager
Enron Assurance Services