093_SR0196

                                     LRB093 11762 KEF 15704 r

 1                          SENATE RESOLUTION

 2        WHEREAS, MCI WorldCom, Inc., formerly known  as  WorldCom
 3    Inc.,   is  a  corporation  headquartered  in  the  State  of
 4    Mississippi and doing business in the State of Illinois; and

 5        WHEREAS,  WorldCom  Inc.,  the  nation's   second-largest
 6    long-distance   carrier,  filed  for  Chapter  11  bankruptcy
 7    protection  in  2002  after  reporting  $3.8  billion,  later
 8    accurately adjusted to $7.1 billion, in bogus accounting; and

 9        WHEREAS,  This  filing  became  known  as   the   biggest
10    bankruptcy  scandal  in U. S. history, affecting thousands of
11    Illinois retirees and resulting in a collective loss of  over
12    $84  million  from  the  Illinois State University Retirement
13    System, the Illinois  Teachers  Retirement  System,  and  the
14    Illinois State Board of Investment; and

15        WHEREAS,  According  to  the  Wall Street Journal, amidst
16    this scandal, the Chief Executive Officer of  WorldCom  Inc.,
17    was   rewarded  with  a  sweetheart  severance  package  that
18    includes a loan of $408 million with an annual payment of one
19    and one half million dollars plus lifetime use of the company
20    jet; and

21        WHEREAS, The Washington Post newspaper reported on May 3,
22    2003 that MCI WorldCom Inc. has already collected a refund of
23    nearly $300 million in overpayments from the Internal Revenue
24    Service based on the company's fraudulent inflation of  their
25    earnings over the past few years; and

26        WHEREAS,  The  United  States Senate Finance Committee is
27    planning  to  ask  the  Justice  Department  to   investigate
28    companies requesting the Internal Revenue Service for refunds
29    of taxes they paid on fake profits; and

30        WHEREAS,  Pursuant  to  the  Illinois  Telecommunications
31    Rewrite  Act  of  2001  MCI WorldCom has entered the Illinois
 
                           -2-       LRB093 11762 KEF 15704 r
 1    local telecommunications market by accessing  the  facilities
 2    and infrastructure built by the incumbent carrier; and

 3        WHEREAS,  The  Illinois  incumbent  carrier offers to its
 4    competitors the lowest wholesale prices in the country;  thus
 5    effectively  subsidizing MCI WorldCom, Inc. in its entry into
 6    the local telecommunications market; and

 7        WHEREAS, The Illinois incumbent carrier, although it  has
 8    suffered   some   employee   layoffs,   has  efficiently  and
 9    responsibly managed its corporate affairs  permitting  it  to
10    remain   profitable   while   providing  its  customers  with
11    excellent reliability and customer service; therefore be it

12        RESOLVED, BY  THE  SENATE  OF  THE  NINETY-THIRD  GENERAL
13    ASSEMBLY  OF THE STATE OF ILLINOIS, that we urge the Internal
14    Revenue Service to prohibit refunds on taxes previously  paid
15    based on unearned profits; and be it further

16        RESOLVED,  That  the  Internal Revenue Service not reward
17    companies for ill gotten gains; and be it further

18        RESOLVED, That suitable  copies  of  this  resolution  be
19    delivered to the Commissioner of the Internal Revenue Service
20    and the members of the Illinois Congressional delegation.