Evidence of Over-billing Could Be Tip of Iceberg   

(Washington, D.C.)  The Council for Citizens Against Government Waste (CCAGW) today called for a new investigation of MCI/WorldCom after an Inspector General and a whistleblower provided evidence of fraudulent over-billing that could total more than $14 million.  The company allegedly abused existing contracts with the Department of Defense and Department of State under the direction of senior management.  

“CCAGW played a key role in the decision made by the General Services Administration (GSA) to suspend MCI/WorldCom from acquiring new federal contracts,” CCAGW President Tom Schatz said.  “Revelations of continued attempts to defraud the taxpayers would indicate that MCI is beyond redemption.”

Under existing contracts, MCI remains the federal government’s single largest provider of telecommunications services.  Information has surfaced in recent months that suggest continued misconduct on the part of MCI:

• Official evidence uncovered by the Department of Defense Inspector General identifies invalid charges totaling more than $1.1 million.  The invalid charges were calculated from inaccurate billing rates and services not provided.
•  The New York Post reported a whistleblower’s claim that MCI was over-billing the State Department $20,000 a month on just one of thousands of government circuits.  The order to overcharge came down from a vice president and through three layers of management. 
• MCI claims it does not have a sufficient grasp of WorldCom-era finances to fully explain over-billing patterns.

“Financial disarray is no excuse for bilking the American taxpayer,” Schatz continued.  “This could be just the tip of the iceberg.  As the chairs of the Senate Government Affairs Committee and the House Government Reform Committee, Sen. Susan Collins (R-Maine) and Rep. Tom Davis (R-Va.) have the power to step in and investigate the extent of the MCI problem.  A full investigation would finally determine if MCI is fit to be a federal contractor.”     

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.