MCI settles for $500m and sets out for Iraq

By Matt Whipp

Posted on 21 May 2003 at 12:12

MCI, erstwhile disgraced Worldcom, has agreed a proposed settlement for its $1.5bn civil penalty of $500m.

'This settlement recognises our cooperation with the SEC's investigation, the Company's acceptance of responsibility for its past accounting practices, and the significant strides we have made in rebuilding MCI as a model of good corporate governance,' said MCI's executive vice president and general counsel Michael Salsbury.

If approved, MCI hopes to emerge from its Chapter 11 bankruptcy in the Autumn. However, the SEC insists that its investigation into the company's sharp accounting practices is ongoing.

Not only does MCI appear to have gotten away with not paying $1bn of the civil penalty, it has also confirmed it has picked up a contract to set up a mobile phone network in Iraq. It is expected that the network will be of the GSM variety, in accordance with the standard in the region, and will be up and running by next month. Financial details have not been disclosed.