Government waste watchdog supports MCI investigation

Citizens Against Government Waste (CAGW) thanked Senator Susan Collins (R-Maine), Senate Governmental Affairs Committee chairperson, for launching an investigation into why MCI has continued to receive government contracts following its record bankruptcy.

Since MCI was found to have engaged in fraudulent behavior, CAGW has been an outspoken critic of the government awarding MCI contracts paid for with taxpayer money. Companies such as Enron and Arthur Anderson that have been found guilty of similar behavior have been barred from doing business with the government. CAGW believes that MCI should not be treated any differently.

Earlier this year, the General Services Administration renewed the company’s $11 billion contract to provide communications services for several government agencies, including the Departments of Defense, Commerce, and Interior. In mid-May, MCI received another expensive government contract worth a reported $45 million to set up a cellular network in Iraq, and a seven-year deal to provide VSAT satellite links for the National Oceanic & Atmospheric Administration. The most recent contracts were announced the same week as the company was fined $500 million by the Securities and Exchange Commission for fraudulent practices.