BusinessCompany NewsMCI embroiled in pensions row

MCI embroiled in pensions row

A US pressure group has called for the federal government to shun MCI because of how the £11bn accounting scandal in its previous incarnation as Worldcom affected pension funds.

Link: WorldCom fraud victims to get £306m

Thousands of people who saw the value of their pension funds plummet after the incorrect accounts were discovered should ‘speak out against allowing the scandal-plagued telecommunications company to retain its current status as the number one provider of telecommunications services to the federal government,’ the group urged.

The Gray Panthers, ‘an inter-generational advocacy organisation’ has launched a media campaign which condemns the US government’s ‘Contracts For Con Artists’ policy of using the telco as its principle supplier – including recently giving it a no bid contract to rebuild the Iraqi telecommunications network.

‘The Gray Panthers would like to know how in good conscience Congress can turn its back on its constituents – including older Americans – by allowing MCI WorldCom to pay no price for its crime?’ said Will Thomas corporate accountability project director at Gray Panthers in a statement.

‘It is outrageous that the Federal Government gave MCI WorldCom a no-bid contract to rebuild the Iraqi phone system.’

Thomas added: ‘I was stunned earlier this week to see the Securities and Exchange Commission fine WorldCom $500m one day and then the company get a multi-million-dollar federal weather satellite contract the very next day. Crime, it seems, does pay as long as you are MCI WorldCom!’

In related moves, it was reported that Senate Governmental Affairs Committee chairman Susan Collins intends to hold hearings in the General Services Administration (GSA) failure to debar WorldCom from federal contracts.

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