By Graham Hayday, 13 March 2002 07:45
NEWS Things are going from bad to worse for Global Crossing, with the bankrupt telco now being dragged into the Enron investigation. Global Crossing is already being investigated by the FBI for alleged financial mismanagement, but it has now emerged that the Congressional energy and commerce committee in the US is interested in exactly how it went bankrupt - the same committee responsible for much of the Enron investigation. Committee officials have written to Global Crossing chief executive John Legere, asking to see thousands of documents regarding dubious accounting practices, in particular those concerning "capacity swaps" which the company allegedly used to inflate its profits, this morning's FT reports. Enron also used similar techniques before its spectacular collapse, and both companies were audited by Andersen.
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