WorldCom Reveals Improper Commissions

WorldCom Inc., the second-biggest U.S. long-distance telephone carrier, said an internal audit found that a dozen salespeople improperly won commissions by billing for sales made by other employees.

At least three workers in WorldCom’s Arlington, Va., office will be fired or forced to quit for claiming commissions that weren’t theirs, spokesman Brad Burns said. The other employees under scrutiny had their salaries frozen and also may be fired, he said.

The actions by the salespeople cost WorldCom as much as $4 million, Burns said. He said the company expects to recover the money and the matter won’t affect financial results.

The shares of WorldCom and rivals have fallen this week on concerns that some telecommunications companies may have to tap into lines of credit at banks to avoid paying higher commercial borrowing rates. Qwest Communications International Inc. borrowed $4 billion after being unable to get loans from money-market investors.

WorldCom shares slipped 39 cents to close at $6.73 on Nasdaq.