Arthur Andersen today said it will dismiss the lead partner on its Enron engagement and is placing three other partners responsible for the engagement on administrative leave.

Separately, the accounting firm announced that it is putting new management in charge of its Houston office. Four partners based in the Houston office have been relieved of their management responsibilities. “We promised to be forthright and to take action where appropriate,” said Joseph Berardino, Andersen’s managing partner and CEO. “We are prepared to take all appropriate steps necessary to maintain confidence in the integrity of our firm,” he added.

Andersen will dismiss anyone found to have improperly destroyed audit work papers. The firm also will take action against anyone found to have purposefully deleted Enron-related e-mails or destroyed Enron-related documents after having been informed that these documents were subpoenaed by the U.S. Securities and Exchange Commission. The firm is still looking into this issue.

However, the Andersen has determined that it is appropriate to take action now with respect to other conduct. “Based on our actions today, it should be perfectly clear that Andersen will not tolerate unethical behavior, gross errors in judgment or willful violation of our policies,” said Berardino.