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House Committee Widens Probe of E-Rate AbuseThe House Committee on Energy and Finance has stepped up its investigation of fraud and abuse in the e-rate program by asking 15 companies, including IBM and SBC Communications, for detailed records of the services they provided and the payments they received.“Based on some of the evidence that we've reviewed already, it’s clear that some vendors have gamed the system. We’re trying to find out whether these are just isolated incidents or are part of a greater pattern of abuse,” committee spokesman Ken Johnson told the July 17 Washington Post. He added that the committee will hold a hearing on e-rate fraud this fall. The Post noted that the Federal Communications Commission, which has three full-time staffers who monitor the e-rate program, is currently tracking 42 federal, state, and local e-rate fraud investigations. In addition, the agency adopted new rules in April to address concerns over fraud and abuse in the program. Posted July 21, 2003. |
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