WorldCom uncovers more dodgy earnings

NEWS WorldCom, already on the telco critical list, has admitted it has discovered an additional $3.3bn in improperly reported profits. The figures affect accounts for 1999, 2000, 2001 and the first quarter of this year and are on top of the $3.8bn of already mis-stated earnings. The bankrupt company - under Chapter 11 protection since 21 July - also said it will record further write-offs and continues to investigate accounts going back to the late 1990s. It is not clear how the latest revelation will affect the company's new CEO, John Sidgmore, who has been at the company for some years, previously as head of the UUNet ISP business. Former CEO Bernie Ebbers is already under investigation while ex-CFO Scott Sullivan and financial controller David Myers were notably led away for questioning in handcuffs in New York earlier this month. Turnaround firm Alix Partners was appointed 10 days ago to restructure the company and has set up a Restructuring Information microsite at http://www1.worldcom.com/infodesk/ .