WASHINGTON-Senate Governmental Affairs Committee Chairman Susan Collins (R-Maine) said she is dissatisfied with the General Services Administration’s response to her May 30 inquiry on why WorldCom Inc. should continue to bid on federal government contracts.
WorldCom, which recently snagged an Iraq mobile-phone contract worth $34 million from the Pentagon, has admitted to fraudulently overstating revenue by at least $9 billion. Last month, WorldCom, now marketed as MCI, agreed to pay a $500 million fine levied by the Securities and Exchange Commission.
“The GSA appears to have focused on WorldCom’s capacity to perform the contract without consideration of the company’s business ethics and integrity, both of which are integral in determining whether a company is a ‘responsible’ government contractor,” said Collins, referring to all government telecom contracts with WorldCom.
Collins said the committee will continue its examination of GSA’s activities regarding WorldCom.
House and Senate bills would require the Bush administration to justify noncompetitive contracts awarded for Iraq reconstruction. The MCI contract to equip officials in Baghdad with L.M. Ericsson mobile phones is not believed to have been put out for bid.
