The chairman and chief executive of collapsed energy giant Enron, Mr Kenneth Lay, has resigned.
His resignation comes as the US Congress prepares to step up its investigation of the causes of the largest business failure in US history.
In a statement released late last night, Enron said Mr Lay would keep his seat on the corporate board of directors but will no longer work for the company in any capacity.
Mr Lay claims the multiple investigations of the Enron collapse were consuming too much of his time and it was becoming "increasingly difficult" for him to concentrate fully on the company business and the need for achieving its turnaround.
The firm's filing for Chapter 11 protection early last December marked the largest-ever bankruptcy filing by a US corporation, and its ripple effect is being felt far beyond the company's Houston, Texas, headquarters.
The collapse has meant over 4,000 job losses, and thousands more have lost their retirement savings invested in company stock that has become all but worthless.
The controversy intensified when it was revealed Enron rank-and-file employees had been prevented by the company from selling their fast-depreciating stock holdings while top executives sold them before prices fell.
Arthur Andersen, the accounting firm that served Enron shareholders, is now accused of helping the Texas giant cover up its financial losses in order to inflate its stock, and of shredding key documents relating to its Enron account.
In a dramatic development yesterday, sacked Arthur Andersen accountant Mr David Duncan, who audited Enron, said through his lawyer he would invoke his constitutional right against self-incrimination by refusing to testify before the House Committee on Energy and Commerce unless he is granted immunity from prosecution.
As well as alleged accounting irregularities, two congressional committees are investigating allegations that Enron manipulated energy trading markets using insider information, congressional officials said yesterday.
The company is also being investigated by the US Justice and Labor Departments as well as by the Securities and Exchange Commission.
AFP