(Washington, D.C.) – Citizens Against Government Waste (CAGW) today 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.

“It’s about time that a member of Congress voices concern about why a corrupt company such as MCI continues to garner expensive government contracts,” CAGW President Tom Schatz said.  “The practice of rewarding companies such as MCI with new contracts has gone on far too long, and we applaud Senator Collins for shining some light on this important taxpayer issue.”

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. 

“Both the law and common sense clearly require that the government end this unholy alliance with MCI once and for all,” Schatz concluded.  “We look forward to the hearing that Senator Collins will chair to provide more information on MCI’s 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.