In the afternoon session, the Government asked Robin Szeliga, former CFO of Qwest, about the internal budget planning for 2001. Ms. Szeglia testified that following the Christmas holiday, meetings were held at Qwest among Ms. Szeliga, Business unit heads, Mr. Woodruff, Mr. Mohebbi, and Mr. Nacchio regarding plans to meet the revenue targets. Ms. Szeglia further testified that in the early part of 2001 there was a clear focus throughout Qwest on accomplishing specific revenue targets.
Ms. Szeliga also testified that midway through 1Q of 2001 Qwest compiled internal estimates for revenue growth to determine Qwest's ability to meet target revenue. The Government introduced documents, known as Dashboard Reports, that summarized monthly financial information. These reports illustrated a looming shortfall in recurring revenue.
In answering further questions about the inability of several business units to meet their target revenues, Ms. Szeliga testified about the focus on IRU's and the non-recurring revenue they generated as a means of making up for the short falls. Ms. Szeliga testified that this occurred despite evidence of shrinking demand for IRU's.
On cross, Mr. Stern, lead counsel for Mr. Nacchio, began by getting Ms. Szeliga to admit that the Board of Directors approved a budget in December 2000. She acknowledged that complaints made by business unit heads about targets related to the December 1 budget rather than the budget approved in February 2001 that had been used by the Government.
Mr. Stern also tried to impeach Ms. Szeliga by asking about the details of any arrangement with the Government to appear as a witness against Mr. Nacchio. Ms. Szeliga denied that any such arrangement existed. Mr. Stern's questions were repeatedly frustrated by Ms. Szeliga's lack of memory and by the numerous objections made by the Government and Ms. Szeliga's counsel, Vincent Marella. Marella raised objections based upon attorney-client privilege.
At times during the cross, the jury appeared to show signs of frustration with Ms. Szeglia's repeated failure to answer questions for the Defense.
The cross of Robin Szeliga continues tomorrow.