ABSTRACT
WorldCom was a major provider of communications services to the US government, corporations and consumers. Following closely after Enron's failure, the WorldCom's $9 billion accounting scandal caused widespread chaos in the US telecom sector and the wider stock market in June 2002. WorldCom common stock fell from a high on 30 June 1999 of $96.766 per share to a low of $46 per share by 30 June 2000. In the wake of numerous Security and Exchange Commission (SEC) investigations into the accounting practices of telecommunications and other companies, WorldCom disclosed on 11 March 2002 that it had received a confidential request from the SEC for voluntary production of documents and information. The WorldCom board was weak on corporate governance, frowned on internal audit and was totally dominated by its chief executive officer (CEO). The board unquestioningly backed Bernie Ebbers through the stupendous expansion – to the brink of the company's collapse.
