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Project on Government Oversight

GSA's Deal with WorldCom: Bad Business for Taxpayers

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January 8, 2004

Yesterday, the General Services Administration (GSA) lifted MCI's (formerly known as WorldCom) suspension despite ongoing federal investigations, allowing the company to once again bid on government contracts. The decision to lift MCI/WorldCom's suspension comes only three days before the expiration of the government's long-distance telephone contract with the company. "The timing of GSA's deal with MCI/WorldCom highlights ongoing concerns with the integrity of the entire suspension and debarment system. This action follows the pattern: the handful of suspensions of major companies that have taken place over the past two decades are typically lifted just in time for a large looming contract," stated Danielle Brian, Executive Director of the Project On Government Oversight (POGO). Brian explains: "The timing of the lifted suspension during ongoing investigations is bad business for the American taxpayer."

For more information about the suspension and debarment system, click here.

Founded in 1981, the Project On Government Oversight (POGO) is a nonpartisan independent watchdog that champions good government reforms. POGO’s investigations into corruption, misconduct, and conflicts of interest achieve a more effective, accountable, open, and ethical federal government.

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