The House Committee on Energy and Finance requested detailed information March 13 from the Federal Communications Commission on its oversight of the e-rate program. Rep Billy Tauzin (R-La.) said in a letter to FCC Chairman Michael Powell that the committee is “investigating the potential for and troubling reports of waste, fraud, and abuse” totaling more than $200 million in the program, which subsidizes telecommunications costs for schools and libraries.
The FCC said it was preparing a response to the letter, a copy of which was also sent to the Universal Service Administrative Company that manages the program, and which called for relevant documents to be delivered to Congress by April 4. Requested records include those relating to “how USAC verifies that schools and libraries have installed and put to use the services and products subject to discounts,” the online CNet news reported March 13.
Tauzin said there are at least 30 federal and state investigations on the use of e-rate funds, including charges brought against a New York City Internet provider for conspiring to steal millions in connection with the subsidy. The D.C.–based Center for Public Integrity also issued a report in January warning against fraud in the program.
Posted March 17, 2003.