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Nortel Puts CFO, Controller on Leave

Suspensions stem from a continuing independent inquiry into the company's accounting.
Stephen Taub, | US
March 16, 2004

Nortel Networks Corp. put its chief financial officer, Douglas Beatty, and its controller, Michael Gollogly, on paid leaves of absence. The suspensions are part of an investigation into the circumstances leading up to the company's restatement announced in October.

Last week the company said it will probably need to revise results for the year ended December 31, 2003, including several quarterly reports, as well as results for one or more earlier periods.

Nortel's stock plunged 19 percent on the news.

The company named William Kerr as interim CFO and MaryAnne Pahapill as interim controller of Nortel and of its principal operating subsidiary, Nortel Networks Ltd.

Kerr joined Nortel in 1994 as controller; before leaving Nortel Networks in 2001, he held a number of senior positions in the company's finance organization. Pahapill, who joined the company in 1999, has held a number of finance positions including assistant controller and, most recently, assistant treasurer.

The company also said that it and its Nortel Networks subsidiary will each delay the filing of their annual reports for the period ended December 31, 2003. The delays will extend beyond March 30, 2004.