MSNBC Scarborough Country - Transcript

MSNBC  
SHOW: SCARBOROUGH COUNTRY

TRANSCRIPT: # 061000cb.471

SECTION: NEWS; INTERNATIONAL

HEADLINE: SCARBOROUGH COUNTRY For June 10, 2003

SCARBOROUGH: With me now is Maine Senator Susan Collins. She's joining us now to talk about her investigation into WorldCom's government contract.

Senator, thank you for being with us tonight and tell us about your investigation.

SEN. SUSAN COLLINS(R), MAINE: Well, Joe, I've decided to look into WorldCom's continued receipt of federal contracts that are worth tens of millions of dollars.

WorldCom, as you know, was involved in the largest accounting fraud in our nation's history. They misstated earnings by—to the extent of $11 billion. The company was recently fined by the SEC some $500 million. And I think that raises real questions about whether or not the federal government should continue to do business with this company.

SCARBOROUGH: Senator Collins, data has come out showing WorldCom's continuing government contracts and their connections. According to the "Washington Technology" magazine, a trade newspaper, WorldCom had $772 million in government contracts in 2002, and 75 federal agencies, and they're the eighth-ranking government technology provider.

Do you think it would surprise a lot of your Senate colleagues that, actually, WorldCom got more government contracts—in fact, they increased their total number of government contracts after filing the largest bankruptcy in U.S. history?

COLLINS: Well, it certainly surprises me and it troubles me.

The government should only be doing business with contractors that not only deliver on the promised services, but have the business ethics and integrity to do business with taxpayer dollars. And that's what's so troubling to me. To see WorldCom continue to get very lucrative government contracts raises questions about whether or not the government is safeguarding our interests. And that's what I'm looking into.

SCARBOROUGH: And, Senator, some of WorldCom's own competitors are now saying they don't even do this type of business. The CEO from Sprint said the following. He said: "I was curious about it, because, the last time I looked, MCI has never built out a wireless network."

And, of course, that's why they've got this Pentagon contract. Are any other senators or congressman on Capitol Hill raising the same questions that you're beginning to raise to the GSA?

COLLINS: I've had a number of my colleagues on the Governmental Affairs Committee come up to me and say: Thank goodness you're looking into this.

There are also some outside groups, like Citizens Against Government Waste, which have called on us to do an investigation. And I think one is warranted. Now, maybe we will find that WorldCom has some sort of exclusive ability to deliver on these contracts, but that does not appear to be the case.

SCARBOROUGH: All right, Senator Susan Collins, thank you so much for being with us tonight and thank you for your investigation.

COLLINS: Thank you, Joe.