Nortel's Accounting Woes (Part II)
So what's going on with Nortel and how have they managed to drop the ball from a communications perspective in the latest chapter of their accounting soap opera. It was bad enough last week when the company said its 2003 annual report would be delayed because an “independent” audit committee needs more time to compllete a review of its financial statements. Now, it has put its CFO and controller on paid-leave until the review is complete. So what gives? How come Doug Beatty and Michael Gollogly get to walk the plank while CEO Frank Dunn sends soothing e-mails to employees? It looks like Beatty and Gollogly are being sacrificed as scapegoats for Nortel's financial woes. What happens if the restatement is minor? Do Beatty and Gollogly get to walk back in from the cold with their reputations still intact? Bottom line: Nortel's IR and PR teams blew it.
