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MCI Inc. controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 2003

    Controversial Iraq reconstruction telecommunications contract

    The company received a no-bid United States Department of Defense contract to build cellular service in Iraq during reconstruction. The award drew controversy because MCI was not widely known for building wireless networks.

  2. 2002

    WorldCom accounting scandal

    WorldCom executives concealed deteriorating earnings by recording telecommunications line costs as capital expenditures and using unsupported accounting entries to inflate revenue. An internal audit team led by Cynthia Cooper brought the issue to the board, triggering executive departures, regulatory investigations, criminal prosecutions, bankruptcy, investor claims, and extensive governance reforms.