If I had been an accountant for WorldCom, I would have treated such disbursements as normal operating costs. If I had been forced by management to indulge in such an unethical behavior, I would see myself enforced to have reported the company to the authorities as this is a serious violation of accounting ethics, and I would not want to be part of such violations.
WorldCom’s reaffirmation of earnings had put the company in default of bank agreements. Such default resulted in loans being called in for immediate payment. WorldCom’s financial problems made it impossible for it to make enough profit to cover such loans as they were called in. Dreading bankruptcy and the possibility of interruption of service, WorldCom’s customers started looking for other, more stable telecom providers which led to even less profit coming in each month to pay their obligations.