(Washington, D.C.) – Citizens Against Government Waste (CAGW) today commended Rep. John Sweeney (R-N.Y.) for offering an amendment to the fiscal 2004 Transportation and Treasury Appropriations Act calling for the General Services Administration (GSA) to decide by August 30 whether to suspend MCI, formerly WorldCom, from receiving government contracts as a result of the company’s accounting fraud.  The amendment passed the House Appropriations Committee by a voice vote.

“Hopefully this action by Congress will finally result in GSA doing what is in the best interests of taxpayers by suspending MCI from doing business with the federal government,” CAGW President Tom Schatz said.  “The government should only award contracts to reputable, law-abiding companies.  Companies, such as MCI, that have not shown exemplary behavior can not be trusted with taxpayer dollars.”

GSA has already initiated suspension proceedings against MCI at the request of Senate Governmental Affairs Committee Chairman Susan Collins (R-Maine).  Since MCI announced its bankruptcy, the government has provided more than $1.2 billion in business for the company, including the renewal of a $17 million three-year contract with the House of Representatives last week.

“While GSA took swift action to debar, or suspend, both Enron and Arthur Andersen from government contracts, the agency failed to do so when MCI went bankrupt and its executives were accused of fraud,” Schatz continued.  “The consistent application of the federal acquisition regulations requires the same result for all three companies.  Rep. Sweeney’s amendment correctly questions GSA’s failure to debar MCI.”

CAGW has been calling for MCI’s debarment from government contracts since November, 2002 on the basis that such agreements unnecessarily put taxpayer dollars at risk, and amount to a hidden government bailout of the company.  Continuing its ad campaign, “Crime Doesn’t Pay,” from last month, CAGW has been running ads over the course of the last week in Congress Daily, The Hill, Roll Call, The Washington Times, and The Weekly Standard.

“With the GSA having a firm deadline to conclude its investigation, taxpayers are closer to learning whether the federal government’s hidden bailout of MCI is coming to an end,” Schatz concluded.  “GSA should disconnect MCI from government contracts.”

Citizens Against Government Waste is the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.  For more information, please visit www.cagw.org.