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Enron Mail |
I'll defer to you two on what of the following needs to be communicated on to
others in Houston: Ilkka - Nigel Sellens (EEL - HR) phoned to confirm Ilkka had been terminated this morning. He faxed the letter given to Ilkka and effectively tied termination to "gross mis-conduct". As expected, Ilkka disputes this. Nigel left resignation on the table with Ilkka as an option which would involve tearing up the letter. I mentioned to Nigel that I don't believe resignation should be an option given the circumstances. I asked Nigel to get back with me on this if Ilkka wants to discuss this further. Moving Operations to London - This morning I checked with Nigel, Kevin Sweeney (Acctg.) and Graham Cane (Logistics) to assure that they are preparing for the possibility that all operations are moved to London. I went ahead and made the calls to assure that all were prepared so that we don't lose 2 ~ 3 days if it is agreed later this week that this is the best course of action. As one alternative, Olga K (in CRM) may need to be involved with rail movements due to the need to have a Russian speaker for communicating with Russian border authorities for rail deliveries if no one in Helsinki will move to London for the near term. You'll note from prior e-mails that business is still being conducted from Helsinki so further communication on this point is clearly necessary since this is in conflict with the wishes of those in last night's conference call. Status of Audit - I spoke with Graham Cane (London Logistics) who is in Helsinki going over documentation with AA. He now believes B/L's have been "adjusted". Typically there is one stamped - Original - B/L and numerous stamped - Non-Negotiable - copies of the B/L. It appears that in some instances vessel stamps and the master signature have been cut off of originals and glued on to altered copies which don't have these stamps. Further confirmation comes from the fact that B/L's attached to invoices sent back from customers (representing agreed settlement of a delivery) don't match the originals. Going Forward - I've not seen AA's scope but would expect it is comprehensive given the magnitude of the circumstances and history. I would recommend that one of you have input just to assure that it is exhaustive and representative of issues of concern to RAC as well. I would assume the timeline/action items, if it exists beyond AA's work, would look something like the following. To my knowledge there is not yet an aggregated list of action items beyond work by AA. Thoughts or questions. Action Timing Finalize the review of all Vnesh documents Complete late this week Agree no new business (and explicitly define bsns impacted) Immediate as this does not appear to be discussed or agreed [note 1] Establish approach to recovery alternatives from Vnesh [note 2] Starting Next week ?? Review other counterparty documentation for contingent liabilities ?? note 1 - J Nowlan and I agreed back in Nov. that prepays were finished for now. However, no new business at all out of Helsinki was not discussed since the issue of altered documentation had not come to light. note 2 - Apparently Vnesh delivered and documented product as fixed price delivered product at some point on all fixed price contracts (even the two they are now disputing as floating). Therefore, by implication they have acknowledged the fixed nature through these deliveries. This and other issues do suggest we may have a case for some measurable recovery once we know the severity of the document tampering issue.
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