WorldCom chiefs could face jail

Former WorldCom executives embroiled in the recent $4bn accounting scandal could find themselves in jail if calls from several quarters are heeded.

Ex-chief executive Bernard Ebbers and sacked former chief financial officer Scott Sullivan, also accused of hindering outside auditors' investigations, invoked fifth amendment constitutional rights against self-incrimination on Monday to avoid testifying at a congressional hearing into the affair.

In the wake of other accounting frauds at Enron, Global Crossing and Xerox, Michael Oxley, chairman of the House Financial Services Committee, said that serious charges could "mean time in federal prison".

At a press conference on Monday afternoon President George Bush alluded to the issue, stating that he will name and shame those executives he holds accountable for blackening the name of corporate America.

Instead of taking the stand, Ebbers issued a written statement in which he said that "no one will conclude that I engaged in any criminal or fraudulent conduct during my tenure at WorldCom".

The company is accused of hiding more than $1.22bn of losses in expenses to keep up with analyst expectations, and is being sued by the US Securities and Exchange Commission.

Resisting offers to sell its assets, new WorldCom boss John Sidgmore has promised to put things right.

"WorldCom is a key component of our nation's economy and communications infrastructure," he said in a written testimony, promising to restore the telco's reputation.

WorldCom is said to carry around half the world's internet traffic.