The Government has walked away from its star case on corporate malfeasance by closing the books on accounting firm Arthur Andersen and deciding not to retry the case. "Why would you charge a company that's already defunct,'' a Justice Department official, who prefers anonymity, tells the Houston Chronicle. What's left of Andersen then releases a statement claiming that decision "represents an important step in removing an unjustified cloud over the professionalism and integrity of the people of Arthur Andersen.''

Yeah right!!! OK, the decision not to prosecute makes sense after the US Supreme Court overturned the criminal case in May. But remember, that was for charges of obstruction of justice for destroying documents related to Enron. The Andersen case always reminded me of the way the law caught up with al capone, not on charges of being a gangster and conspiracy to murder, but on tax evasion. Andersen's real offence was punishing good auditors and rewarding the ones who did whatever corrupt companies asked them to do and, as a result, aiding and abetting corporate malfeasance.

There are still big problems with the accounting industry. Looks like the Big Four have more power than ever before, and companies are still tempted to fudge their numbers. These problems don't look like going away.

And in another sign that the ghost of Andersen is still with us, the move by ex-Andersen partner David Duncan to have his guilty plea withdrawn could hurt the prosecution of the Enron case. Dropping the case, allows Duncan to file the motion to withdraw the plea. And without a plea agreement, he just might be unwilling to testify against Kenneth Lay and Jeff Skilling.