'WorldBomb' Owns Up to Pounds 2.5bn Accounting Fraud
Byline: John Cranage
US telecoms group WorldCom looked in danger of becoming WorldBomb yesterday after owning up to a pounds 2.5 billion accounting fraud.
The scandal, thought to be the biggest in US history, cost 17,000 employees - a fifth of the workforce - their jobs, sent stock markets plummeting and threw a pounds 20 billion debt refinancing deal into doubt.
It also plunged scandal-plagued accountants Arthur Andersen into a fresh furore.
It emerged that Andersen, since replaced by KPMG, had audited and signed off WorldCom accounts that hid the fact that operating costs such as basic phone network maintenance had been booked as capital investments. …
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Publication information:
Article title: 'WorldBomb' Owns Up to Pounds 2.5bn Accounting Fraud.
Contributors: Not available.
Newspaper title: The Birmingham Post (England).
Publication date: June 27, 2002.
Page number: 25.
© 2009 Birmingham Post & Mail Ltd.
COPYRIGHT 2002 Gale Group.
This material is protected by copyright and, with the exception of fair use, may not be further copied, distributed or transmitted in any form or by any means.
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