Feeds

US bars MCI Worldcom from new federal contracts

Too little, too late

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

Shareholder activists have won a victory in their campaign to ban MCI Worldcom from supplying the US government. But they say it's too little, too late.

A US agency, the General Services Administration, has barred MCI from bidding for new federal contracts, ruling that the telco giant "had not adequately addressed its material accounting and business ethics weaknesses. The ban is temporary - just a month - but the GSA says it will consider if this should be extended to three years.

"It is important that all companies and individuals doing business with the federal government be ethical and responsible," GSA Administrator Stephen Perry said in a statement, Reuters reports.

In recent days, MCI has come under fire from rivals which accuse the company of fraudulent behaviour in rerouting federal calls through their networks. The FCC has launched an investigation.

The GSA's move is a step in the right direction for Mitch Marcus, founder of BoycottMCI.com, but he remains suspicious.

"However, this whole thing smells of being a pre-negotiated deal under which MCI can wiggle out of it in as little as a month. MCI/WorldCom is what it is and the GSA must hold steadfast on the suspension and debarment. It is imperative that the U.S. House and Senate keep up the heat on the GSA to assure that today's action, which was long overdue, becomes permanent", he said.

The Gray Panthers are also in attack dog mode. In a statement, corporate accountability project director Will Thomas said the GSA move should have come much sooner. "We call on the General Accounting Office (GAO), which is investigating GSA's original decision, to look into how this travesty came about. Yes, the GSA did the right thing, but it finally acted after tens of millions of dollars in contracts were awarded. By the time the tardy GSA acted, the MCI horse was not only out of the barn, it was already in the next county," he said. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.