Troubled telecoms company MCI, formerly known as WorldCom, has been dealt another blow in its attempt to emerge from Chapter 11 bankruptcy protection, after it was banned from taking on US federal contracts.
Accountancy Age, 01 Aug 2003
The US government has argued that the company still lacks sufficient ethical controls following last year's $11bn accounting scandal although current federal contracts with MCI will not be cancelled, according to the body responsible for handing out government work.
MCI has said that it will not challenge the decision and chairman Michael Capellas said that the company was in the process of rebuilding its ethics program.
The company is still under investigation over allegations of falsified balance sheets and inflated earnings and has been accused by its telecom rivals of defrauding them out of hundreds of millions of dollars.
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