WASHINGTON-The Federal Communications Commission’s inspector general says allegations of fraud and corruption continue to plague a multibillion-dollar government that gives Internet-access discounts to schools and libraries.
In a semi-annual report to Congress and FCC Chairman Michael Powell, FCC Inspector General Walker Feaster said limited progress in improving the E-rate program has been offset by legal, funding and auditing problems.
Feaster said his staff is tracking 26 investigations, more than half of which were instigated this year. A number of the probes have been referred to the Justice Department. The FCC’s inspector general highlighted E-rate problems in the previous semi-annual report. Congress, which passed the 1996 telecom act that authorized E-rate, has been largely silent on program’s troubles in recent years.
“Until such time as resources and funding are available to provide adequate oversight for the USF [Universal Service Fund] program, we are unable to give the chairman, Congress and the public any level of assurance that the program is protected from fraud waste and abuse,” said Feaster.
E-rate, which provides a source of revenue to wireless carriers and vendors, is managed by the Universal Service Administrative Co.
