Bankrupt telco Global Crossing is launching an independent probe into its accounts, while facing an investigation by US regulator the Securities and Exchange Commission.
The move follows allegations against the company of impropriety by an ex-employee.
Roy Olofson, Global Crossing's former finance vice president, wrote to the company's lawyers last August suggesting that the accounts indicated that its financial performance was better than it actually was.
Olofson was made redundant in November and is currently suing the company for unfair dismissal.
The telco, whose slogan is "Go Further, Aim Higher", is alleged to have inflated its earnings and cash flow to make its outlook appear brighter.
An independent probe of Global Crossing's accounts has been launched amid growing concerns among investors over the company's accounting practices.
The concerns have been fuelled by the current bout of 'Enronitis', a term coined to describe the growing number of companies which have come unstuck by the use of 'unusual' accounting practices.
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