WorldCom

WorldCom - Hadefields Office Park, 1267 Pretorius Street,...

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Hadefields Office Park, 1267 Pretorius Street, Ground Floor, Block C, Hatfield, 0083, South Africa PO Box 2427, Brooklyn Square, 0075, South Africa Tel: +27 (0)12 342-2799, Fax: +27 (0)12 342-2790 E-mail: administrator@ethicsa.com Website: www.ethicsa.com Mr Colin Beggs, Prof Solomon R Benatar, Mr Rej Brijraj, Mr Adrian Gore, Mr Chirfi Guindo, Prof Johnathan D Jansen, Prof Willem A Landman Chief Executive Officer , Prof Lizo E Mazwai , Prof Anton A van Niekerk Chairperson WorldCom Case Study At its peak in 1999 the telecommunications giant, WorldCom, was valued at $180 billion. In 2002 the company was forced to file for bankruptcy due to the discovery of an $11 billion accounting fraud. To this date, WorldCom remains the largest bankruptcy ever recorded. 1. Background s Founded in 1983 by Bernard Ebbers. s Up until 2000, WorldCom was the second largest long-distance telephone company, and the largest mover of internet traffic in the United States. s In no more than 15 years, WorldCom had evolved aggressively into one of the leading players of the telecommunications industry. s At its height, WorldCom employed over 80 000 people and Bernard Ebbers laid claim to a personal fortune of just over $1.4 billion. 2. Key Stakeholders/ Role-players s Bernard Ebbers Former Chief Executive Officer and founder of WorldCom. Ebbers, a former basketball coach, milkman and Sunday school teacher, was forced to resign in March 2002 as a result of the scandal. s Scott Sullivan Former Chief Financial Officer of WorldCom. Sullivan was fired due to his involvement in the scandal. s David Myers Senior Vice-President and controller of WorldCom. Myers was fired due to his involvement in the scandal. s Buford Yates Former Director of Accounting at WorldCom. Yates was implicated in the scandal and forced to resign. s
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This note was uploaded on 04/04/2011 for the course ACCT 5230 taught by Professor Szendi during the Spring '10 term at Kean.

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WorldCom - Hadefields Office Park, 1267 Pretorius Street,...

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