For Immediate Release Contact:  Mark Carpenter/Tom Finnigan
August 29, 2003 (202) 467-5300

 

“The company does not deserve the taxpayers’ trust,” Schatz says

(Washington, D.C.) – In light of the announcement by Oklahoma Attorney General Drew Edmondson that the state is filing criminal charges against MCI, formerly WorldCom, and six former executives, Citizens Against Government Waste (CAGW) once again called for the General Services Administration (GSA) to debar the company from all federal contracts. 

“This is just one more black cloud hanging over MCI,” CAGW President Tom Schatz said.  “Criminal charges pending against MCI are further evidence that the company is not qualified to do business with the U.S. government.”

On July 31, GSA announced it was suspending MCI and proposed debarment for its corporate misconduct and fraudulent accounting.  The company’s 30-day deadline to appeal is approaching, and if it does not appeal, the company could be barred from new contracts with the federal government for up to three years.  However, the deadline for the appeal could be extended.

“GSA has taken a step in the right direction to protect taxpayers’ money by suspending MCI,” CAGW President Tom Schatz continued.  “Now, they need to act further by debarring the company.  In the year since the Securities and Exchange Commission launched its initial investigation into what was then WorldCom, the government has awarded MCI more than $1.2 billion in contracts.”

CAGW has been calling for MCI’s debarment from government contracts since November, 2002 on the basis that the Federal Acquisition Regulations required such a conclusion, as well as that the agreements unnecessarily put taxpayer dollars at risk and amounted to a hidden government bailout of the company.  The taxpayer watchdog ran an ad campaign during the month of July, entitled “Crime Doesn’t Pay,” demanding debarment.

“If and when MCI appeals, GSA needs to stick by its decision.  With all of these proven and pending allegations of wrongdoing, one has to wonder what more MCI may be hiding,” Schatz concluded.  “The company has already demonstrated that it will engage in unacceptable, unethical, and fraudulent behavior in order to obtain federal contracts and abuse tax dollars.  GSA needs to disconnect MCI through debarment.”

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.