Revisionist history…

October 17, 2003

It’s hard to know where to begin with Qwest Communication’s (Q) 200-plus page 10-K filed late yesterday. In the filing, the troubled telecom company restates its results for 2000, 2001 and 2002. (Full disclosure: as I note in my book, I was one of the suckers who fell for Qwest’s results the first time around, which makes yesterday’s restatements all the more difficult to swallow!). Not only were the numbers off — way off — operating income as originally reported for 2001 was $820 million, compared with an operating loss of $2.37 billion that Qwest reported yesterday. Then there’s the 2 pages of related party transactions with companies run by Qwest’s former chairman, Philip Anschutz. Also: the $15 million paid to the former CEO, Joseph Nacchio, not to mention the $125,000 monthly fees through 2004 and the lifetime free health insurance for Nacchio and his wife. Not a bad reward for lying about results and running a company into the ground.

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