BusinessCompany NewsNortel sacks CFO in finance clearout

Nortel sacks CFO in finance clearout

The chief financial officer, financial controller and four more senior business finance executives of communications giant Nortel Networks have been fired following an investigation by the company's audit committee.

Link: SEC to investigate Nortel accounts

Douglas Beatty, CFO, and financial controller, Michael Gollogly, were both ditched for ’cause’ following a probe into the circumstances leading to the restatement of its accounts for the years 2000, 2001, 2002, and 2003.

William Kerr will take over as CFO on a permanent basis having being made interim CFO in mid-March.

Work carried out by the audit committee so far has recommended a reduction of approximately 50% in previously announced net earnings for 2003; and a reported net loss for the first half of 2003 compared to the previously announced net earnings for the same period.

Four other senior business finance executives have been let go. The company’s CEO, Frank Dunn, was also fired for ’cause’ and has been replaced by William Owens.

‘These actions are an important step in the process of restoring confidence in the company’s leadership and financial reporting,’ said Lynton Wilson, chairman of the board at Nortel Networks.

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