Subject: [NEXTEL-1] U.S. Pays $45,000,000.00 For a 19 Site, 5000 Subscriber GSM Network In Baghdad.

From: [email-masked]
Date: Thu, 22 May 2003 18:23:22 -0400

Woow, I missed that number! $45M for a 19 site system?  They must be
trenching the Fiber themseleves!
The must have a **** of an MSO! No wonder AT&T wants a piece of that.
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Questions Raised About WorldCom's New Government Contract
MCI, formerly known as WorldCom, has been chosen by the federal
government
to build a small wireless network in Iraq, raising the ire of wireless
companies
and raising questions from government watchdog groups and at least one
U.S.
Senator. WorldCom has never built a wireless network. In addition, the
company
perpetrated the largest accounting fraud in American history. Meanwhile,
both
Enron and Arthur Anderson, two other companies that have recently faced
major
accounting scandals, are barred from receiving new contracts from the
federal
government. Senator Susan Collins, Chairman of the Senate Governmental
Affairs Committee, has vowed to investigate the General Services
Administration's handling of WorldCom contracts.

---------------------------------------------------------------------------------------------------------------------------

Senator Probing WorldCom's Federal Contracts

By Christopher Stern
Washington Post Staff Writer
Thursday, May 22, 2003; Page E06

A key member of Congress announced yesterday that she has launched an
investigation into a federal agency's decision to
continue doing business with WorldCom Inc. after the telecommunications
company disclosed the most massive accounting
fraud in corporate history.

Senate Governmental Affairs Committee Chairman Susan Collins (R-Maine)
said the investigation would look into the General
Services Administration's dealings with WorldCom and would also look at
contracts awarded by other government agencies.

WorldCom, the nation's second-largest long-distance company, disclosed
its improper accounting last June before filing for
bankruptcy in July. WorldCom is now doing business under the name MCI.

In November, the GSA granted a one-year extension to WorldCom on a
contract to provide more than a dozen federal
agencies with long-distance phone and other telecommunications services.
It was not clear yesterday how valuable the deal will
be, but in the previous year the company earned $331 million under the
contract, a GSA spokeswoman said.

"There may be a legitimate reason that GSA decided it was in the
government's interest to continue to extend business to
WorldCom but I want to know what that justification is," Collins said
during an interview yesterday.

The GSA serves as a contracting agent for dozens of federal agencies.
Collins said that she would also probe the GSA's
decision not to completely bar WorldCom from doing business with the
federal government.

"GSA has continued to extend new contracts and that raises questions in
my mind," Collins said.

Some of WorldCom's biggest rivals, including Verizon Communications
Inc., have been attempting to block WorldCom's
efforts to reorganize by lobbying Congress and the Federal
Communications Commission to disqualify it as a federal contractor
and license holder. Criticism from members of Congress has been building
in recent weeks as it has become clear that
WorldCom is on track to emerge from bankruptcy as early as September.

William P. Barr, Verizon executive vice president and general counsel,
praised Collins for pursuing the investigation. "I think it's
about time somebody paid attention," Barr said in an interview
yesterday. The former U.S. attorney general also noted that
WorldCom may receive more from federal contracts than the $500 million
it agreed to pay the SEC under a settlement of civil
fraud charges announced earlier this week.

Verizon is one of Collins's biggest political donors, giving her Senate
campaign $10,000 during the last election cycle, according
to the Federal Election Commission.

Since filing for bankruptcy, WorldCom has tried to distance itself from
the accounting scandal. More than 30 executives have
been dismissed and the entire board of directors has been replaced.

"Financial issues of the past and the wrongdoing of a few former
executives have no bearing on our proven track record and
demonstrated integrity as a government contractor," said WorldCom
spokesman Brad Burns.

Despite the scandal and ongoing investigations by both the Justice
Department and the SEC, WorldCom has actually increased
the amount of business it does with the federal government by more than
50 percent, according to Washington Technology, a
trade publication. This year, WorldCom is expected to have $772 million
in federal government sales, compared with $507
million in 2002, according to an annual survey published by the
magazine.

Earlier this month, the Pentagon disclosed that it had awarded WorldCom
a $45 million contract to build a mobile phone
network in Baghdad. The contract angered many of WorldCom's competitors,
some of whom said they were not even aware
the project was in the works.

Barr disputed WorldCom's claim that it should not held accountable for
the actions of former executives.

"The whole approach of the [Bush] administration suggesting that
enforcement should be only aimed at individuals is nonsense,"
Barr said.

WorldCom has stated that the total amount of improper bookkeeping is $9
billion, but sources familiar with the company said
the final tally may be closer to $11 billion.

 http://www.washingtonpost.com/wp-dyn/articles/A23666-2003May21.html

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