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Enron Mail |
Mike,
#4 - I would expect that to the extent you continue to have activity in Argentina, especially Arcor, that it would be wise to keep one accounting person in BA. We currently do not have anyone in SP that has both Brazil and Argentine statutory accounting experience. I also believe that it would be somewhat difficult to find a person which would have this experience in Brazil. Finally, since we already have someone in BA that understands the system and the business, it just makes sense, from a learning curve perspective, to keep one of the current staff. #1 - From an accounting point of view, the mechanics would not be a problem as we have SAP in SP as well, which is tied into Houston and BA. However, the bigger problem, staffing to handle this, is addressed above. Let me know if you need further clarification. Allen To: Lynn Aven/NA/Enron@Enron, Brent Hendry/NA/Enron@Enron, Andrea Calo/SA/Enron@Enron, Scott Mills@EES, Luis Juarros/SA/Enron@Enron, Allen W Ueckert/NA/Enron@Enron, Guillermo Canovas/SA/Enron@Enron, Cristian Folgar/SA/Enron@Enron, Rodolfo Freyre/SA/Enron@Enron, Julian Poole/SA/Enron@Enron cc: Joe Kishkill/SA/Enron@Enron, Orlando Gonzalez/SA/Enron@Enron, Miguel Padron/NA/Enron@ENRON, Remi Collonges/SA/Enron@Enron, Brett R Wiggs/SA/Enron@Enron, Mark Taylor@ECT, Carlos Bastos/SA/Enron@Enron Subject: Argentina Trading in Brazil We are in the process of working through the regional objective of consolidating intellectual capital I.E. we want Argentina trading activity to be consolidated into the Sao Paulo trading operations. 1 What are the tax, legal, regulatory, accounting and operational consequences of this move? 2 Are there any commercial restrictions I need to be aware of? 3 Are there any barriers to payments and receivable management? 4 Could accounting be managed out of Brazil? 5 Are there any Argentine banking requirements that would require the payables and receivable function to remain in Argentina? 6 Are there any conflicts with Brazilian law or banking regulations? 7 Is there any additional taxation exposure such as in the case of the US as we decrease Argentina functional independence? 8 Are there any Argentine regulatory conflicts with operating out of Brazil? 9 Are there any Argentine legal conflicts with operating out of Brazil? 10 How do we and can we operate Enron America del Sur S.A. and Enron Comercializadora de Energia S.A. out of Brazil? 12 If necessary what functions need to remain in Argentina to resolve any legal, regulatory, accounting or tax issues? 13 Can the stack managers be live in both Argentina and Brazil to resolve any identified issues? 14 Are there any legal or tax advantages to the Brazilian operational structure? 15 Mostly are there any fatal flaws I need to be aware of? Under this structure the stack managers for the following current and future products will ideally be operated in Brazil: Arg Gas Onshore Physical Arg Power Onshore Physical Pending local derivatives company The stack manager for Arg Power, Offshore, Financial will continue to be operated from North America as designed and agreed upon. I need a quick readers digest version of what I am up against here. We can get into more details as we proceed. Please advise ASAP (Monday morning if possible with the short version) so I can proceed with the best way to accomplish this organizational objective and corresponding structure. MFG
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