Risk & Compliance

Computer Associates Fires Nine Employees

The software company seems to have played out its hand, but prosecutors still hold a couple of trumps.
Stephen TaubApril 20, 2004

Computer Associates International Inc. is close to putting the finishing touches on a resolution to its accounting scandal.

On Monday, the software giant announced that it had sacked five individuals in its finance department and four in its legal department. The firings, added the company, resulted from a continuing investigation by its audit committee into the company’s accounting practices.

The audit committee — headed by Walter P. Schuetze, former chief accountant for the Securities and Exchange Commission — is also assessing whether a restatement of the company’s financials may be required.

“As the audit committee wraps up its work and takes these remedial actions, the management team has continued to focus on the business at hand as we have in the past months,” said chairman and chief executive officer Sanjay Kumar, in a statement. “We have kicked off our new fiscal year, rolled out our fiscal year objectives, and remain focused on keeping our customers at the center of all that we are doing.”

Kumar and retired chairman Charles Wang have not been implicated in the scandal.

Earlier this month, however, when former chief financial officer Ira Zar pleaded guilty to backdating contracts, he stated that two other high-level executives were involved, according to the Associated Press. Prosecutors described those figures as “Executive No. 1 and Executive No. 2” and noted that Zar reported to Kumar, added the AP.

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