WASHINGTON-WorldCom Inc. said Monday that its suspension from doing business with the government could cost the company as much as $137 million by 2005.
In a filing with the Securities and Exchange Commission, WorldCom-now doing business as MCI-gave two different scenarios. One has it resuming business with the government as of Nov. 1. This would reduce its income by $18 million in 2004 and $12 million in 2005. If it takes until July 1, 2004, for WorldCom to be re-certified by the General Services Administration, income would be reduced by $105 million in 2004 and $137 million in 2005. The 2003 figure of $8 million is the same under both scenarios.
The GSA last month said it must reform its accounting practices and implement an ethics program before it can bid on new government contracts.
MCI recently was awarded a contract to build a mobile-phone network in Iraq for use by military and government officials during the reconstruction. WorldCom is also the parent of SkyTel paging.
