|The Mohegan Tribe of Indians announced Monday that they have dispensed with the services of accountants Arthur Andersen LLP as its independent auditors. The Mohegan Tribe also announcedthat they will be replacing Andersen with rival “big five” firm PricewaterhouseCoopers. The tribe notified the Securities and Exchange Commission as required by federal securities law.|
The decision to replace Andersen was approved by the Mohegan Tribal Council and the management board of the Mohegan Tribal Gaming Authority after examining a report from the Tribe’s audit committee recommending the change.
The move is a direct response to the Enron scandal, and the related investigations and recent federal indictment.
``The Tribal Council believes it had no other choice then to remove Andersen as its independent auditor, especially after learning of the Justice Department indictment, Andersen losing its right to audit gaming companies in New Jersey and the potential licensure issues in Connecticut,'' said Mark Brown, Chairman of the Mohegan Tribal Council. Brown also said, ``that Andersen, particularly the Hartford office personnel, had done an exemplary job as the Tribes' auditor and advisor from the time they were retained in 1995 until the present. It is not a happy decision we have made -- but clearly one that had to be made.''