Worldcom executives Congressional hearing

• Report rights infringement
• published: 21 Jul 2015
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1. Witnesses raise their right hands and are sworn in 2. Cutaway of committee members 3. Cutaway of committee chairman 4. SOUNDBITE: (English) Bernard Ebbers, Former Worldcom Chief Executive Officer: "Although I would like more than you know to answer the questions that you and your colleagues have about Worldcom, I've been instructed by my counsel not to testify based on my fifth amendment constitutional rights. When all of the activities at Worldcom are fully aired, and when I get the opportunity - and I'm very much looking forward to it - to explain my actions in a setting that will not compromise my ability to defend myself in the legal proceedings arising out of the recent events, I believe that no one will conclude that I engaged in any criminal or fraudulent conduct during my tenure at Worldcom." 5. Wideshot of hearing 6. Sideshot of Scott Sullivan speaking 7. SOUNDBITE: (English) Scott Sullivan, Former WorldCom Chief Financial Officer: "Based upon the advice of counsel, I respectfully will not answer questions based upon my fifth amendment right to the United States Constitution." 8. Wide of hearing 9. Melvin Dick testifying 10. SOUNDBITE: (English) Melvin Dick, Former Andersen Auditor for WorldCom: "Let me state clearly and without any qualification, prior to June 21st, 2002, when Anderson was first contacted about this matter, neither I nor any of my team members had any inkling that these transfers had been made." 11. Ebbers and Sullivan at hearing 12. Wide shot of committee 13. SOUNDBITE: (English) Representative Michael Oxley, Chairman, House Financial Services Committee: "While different companies dealt with a changed market reality in a variety of ways, none has yet shown the audacity to commit fraud on the scale that has been alleged here." 14. Ebbers listening 15. Wide shot of committee 16. SOUNDBITE: (English) Representative John LaFalce, Financial Services Committee Ranking Democrat: "There is an urgent need for strong and reasoned legislation to restore the market confidence that has been squandered by greed, incompetence, fraud and weak regulation." 17. Wide shot of committee STORYLINE: WorldCom's former chief executive officer refused to answer questions on Monday from a congressional panel investigating nearly four (B) billion US dollars in accounting irregularities at the US telecommunications giant. In a brief, prepared statement before the House Financial Services Committee, Bernard Ebbers said he has nothing to hide, but said he'd been advised by his attorney to remain silent in light of the ongoing investigations into WorldCom and cited his fifth amendment constitutional right not to say anything that could incriminate him in legal proceedings. The company's former chief financial officer, Scott Sullivan, also refused to testify. In prepared testimony presented before the hearing, WorldCom's current President and Chief Executive Officer John Sidgmore, blamed the company's former management for the accounting problems. But WorldCom Chairman Bert Roberts called the accounting improprieties "an outrage," and said auditor Arthur Andersen was responsible. Testifying before the committee, Andersen's senior audit partner for WorldCom said neither he nor any member of the Andersen team was aware of the improper accounting. WorldCom is the latest major corporation to face allegations of executive wrongdoing and accounting irregularities, driving down public confidence in business and the stock market. WorldCom, whose interests include the country's second biggest long-distance telephone company MCI, is battling to avoid bankruptcy after disclosing that it disguised 3.9 (b) billion dollars of expenses as capital expenditures to appear more profitable. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/2b9fe129d409e0651dffe426dea92fbb Find out more about AP Archive: http://www.aparchive.com/HowWeWork