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Xerox Completes Independent Investigation

Rochester, NY – Xerox Corporation has released the findings of an investigation into its Mexican subsidiary, where managers altered the company's books to appear more successful than they really were. Xerox disclosed the irregularities last summer, and hired outside investigators to look into them. The Securities and Exchange Commission isalso investigating. The managers involved have been fired, but clearing up the problem cost Xerox a 120-million dollar charge against last year's earnings. Xerox Chairman Paul Allaire says a check of world-wide operations hasn't turned up such problems anywhere else. Xerox says several managers at its Mexican operations violated company accounting and ethics rules. The investigation showed that they altered records on sale, lease or rental of equipment. They altered past-due accounts to make them look current, and engaged in questionable billing practices. Xerox says it happened because some of its executives in Mexio wanted to drive growth at any cost, and were willing to use questionable practices to do it. Xerox has tightened its corporate accounting controls. But the company says its conscientious employees have been dishonored, and trust with the customers of Xerox Mexio has been broken.