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Marchelos Debarred - Phone Subsidy Program Back on Track!

I wrote here six weeks ago about how the telecommunications subsidy programs run by the Federal Communications Commission were poorly run and subject to waste, fraud, and abuse.

Well, evidently, the FCC got the message and has cleaned up its act! Or started to . . . . Or at least they did something.

Today, the agency has debarred a Mr. George Marchelos from from the schools and libraries universal service support program (often called the “E-Rate program”) for three years. Marchelos was recently convicted of participating in schemes to defraud the E-Rate program and of engaging in bid rigging on E-Rate projects for certain school districts. (Here’s a look at part of his indictment.) He must be devastated that he can’t rig bids or defraud this particular corner of the government for a whole three years.

Interestingly, Marchelos was a witness at a congressional hearing on problems with the e-rate program back in 2004. (The House Commerce Committee says his testimony will be online “as soon as possible after the conclusion of the hearing,” which evidently is something more than three years.)

So you can go ahead and pay your telephone taxes again with the confidence of knowing that waste, fraud, and abuse have been squeezed out of this program - ummm, for three years at least.

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