Xerox chief rejects calls for new probe
Office hardware provider Xerox, has come under criticism from analysts and management experts for not sufficiently resolving 'accounting and financial reporting irregularities' in its global operations.
The allegations of financial reporting irregularities, made by former assistant treasurer James Bingham, prompted calls from the Centre for Financial Research & Analysis and the Centre for Corporate Governance for an external investigation.
Bingham is currently suing the Xerox for wrongful termination of his contract.
‘The person making these allegations was a fairly senior financial executive who should be in a position to know about the company’s accounting policies,’ Howard Schilit, head of the CFEA told the NYTimes.com.
Continued calls for an independent inquiry come despite assurances by Xerox chairman Paul Allaire that all problems had been resolved following an external investigation.
Allaire insisted Xerox’s examination had been thorough and its board had acted diligently.
‘We are aware of Jim Bingham’s allegations. We investigated them, we found there was no basis, and I see no need for an independent investigation now,’ he said.
At the beginning of February, Xerox released the findings of an investigation by external legal and accounting firms. The company claimed the inquiry uncovered ‘improprieties’ relating to management style and the desire to drive down costs by implementing ‘questionable business decisions and practices’.
‘The investigation also concluded that upon learning of the problem, and ascertaining and verifying the extent of the issue, the company’s response and plan of corrective action was timely and proper’, the company said.
Concerns over Xerox’s financial reporting were first raised by reports in June of improper accounting practices uncovered in Xerox’s Mexican businesses, later acknowledged by the company.
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