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06-17-2004, 10:29 AM
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| Fraud threatens Internet program for U.S. schools The money was intended to fund the government's E-rate program, which was designed to help schools and libraries in poor and rural areas get affordable telecommunications and Internet services through subsidized discounts. The program, which began in 1998 as part of the 1996 Telecommunications Act, is overseen by the Federal Communications Commission and administered by the Universal Service Administrative Company, a private, nonprofit organization better known as USAC. The program has achieved its main objective of wiring schools for access to the Internet but in the process has allowed fraud and waste to run rampant. About 40 fraud cases are being investigated by the FCC, the Department of Justice and the FBI. "E-rate is the classic example of a program that was begun with good intentions and has found itself suffering from corruption, because there wasn't sufficient oversight," said Bob Williams, senior writer at The Center for Public Integrity, a nonprofit investigative research organization. Fraud threatens Internet program for U.S. schools
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06-17-2004, 10:29 AM
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