US telephone giant WorldCom revises its balance sheet
As it became known, the American telecom group WorldCom is struggling with a balance sheet falsification amounting to almost four billion euros. This is now the second major financial scandal after the Enron affair.
After the incorrect bookings became known Chief Financial Officer Scott Sullivan and Financial Controller David Myers were immediately removed from their posts. As a direct result, WorldCom is now having to lay off 17,000 of its 75,000 employees worldwide. With the results revised downwards, the second-largest long-distance operator in the United States now has a net loss instead of a profit of 1.4 billion US dollars. This falsification of the balance sheet was discovered by an in-house investigation that noticed that, for example, building and property costs were not posted as usual, but were written off over a longer period of time. This moved $ 3.05 billion last year and $ 797 million this quarter to capital accounts. With this announcement, the share price on Wall Street dropped from 83 cents to 35 cents. WorldCom shares were once valued at $ 60 in the 1990s.