US bosses to take oath on accounts

THE chief executives of 945 major US quoted companies, including such titans as General Electric, Eastman Kodak, Levi and Ford, have been ordered to swear to their accounts under oath following the wave of US corporate scandals.

The Securities and Exchange Commission calls the demand 'an unprecedented step to help restore investor confidence'. Executives will risk prison if they file inaccurate accounts.

The SEC is already suing WorldCom for fraud over the £2.5bn black hole in last year's accounts. The ailing telecoms company is now probing the books as far back as 1999.

The deepening scandal turns the spotlight ever more harshly on former boss Bernie Ebbers, who quit in April. He must testify before Congress next week. He told a church congregation on Sunday: 'No one will find me to have knowingly committed fraud.'

But WorldCom shares, once $64, crashed to six cents on relisting and it defaulted on £2.7bn debts. It owes £21bn and risks complete collapse. The White House may ban any dealings with WorldCom.

Supplier BATM, a maker of hi-tech equipment, warned first-half sales will be 20% below forecasts because of the US telecoms meltdown. BATM, once 765p, tumbled 4p to 16p. Chief executive Zvi Marom said: 'We have delayed orders to WorldCom until we know what is going on.'

Cost- cutting will allow BATM to meet profit forecasts, although trading remains 'difficult'. The Israeli group has £37m cash and 'no debts - not one cent,' Marom added.

The UK Government is considering forcing companies to change auditors every seven years to prevent relationships from becoming too cosy. Accountants oppose the move. More than 90 FTSE 100 firms have had the same auditor for over a decade. Barclays has been audited by the same firm for 90 years.