Andersen executives here plan own firm

Advertiser Staff

Executives in the Honolulu office of Arthur Andersen LLP have decided to split from the troubled company and establish their own firm, to be called Karns Murakami and Hanashiro LLP.

Arthur Andersen, the accountant for Enron Corp., has been losing clients worldwide since it was accused of shredding documents related to the Enron bankruptcy last year. Earlier this month, a Houston court found Arthur Andersen guilty of obstructing justice in the Enron case.

The company was also the accounting firm used by WorldCom Inc., which this week revealed it had hidden $3.8 billion in expenses to improve its balance sheet.

"During the events of the past year, our clients and friends in Hawai'i have provided tremendous encouragement and support to our local office," said Randy Karns, Honolulu managing partner, in a press release. "All of our local clients have remained with us."

Karns said he is still negotiating the separation from Arthur Andersen and "no definitive agreement has yet been made."

The local office has been one of O'ahu's largest accounting firms but is down from about 70 employees to 45 to 50, Karns said earlier this month. "It is also one of our priorities to continue to provide outstanding career opportunities and financially secure employment for our staff," he said.