House Republicans Kick Off Lifeline Investigation
House Republicans have begun investigating the FCC Lifeline program. Commerce Committee Chairman Fred Upton, R-Mich., “instructed Committee staff to begin an investigation of the program consistent with your recommendation,” he told Reps. Mike Pompeo, R-Kan., and Austin Scott, R-Ga., in…
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a letter dated Thursday. “As you so aptly observe, such action is necessary to ensure not only that ratepayer dollars are responsibly spent but also ensure the long-term effectiveness of the program for those that truly need the assistance.” Pompeo and Scott wrote to Upton earlier this week complaining of the contents of a notice of apparent liability the agency issued to Total Call Mobile. Scott and Pompeo said that case shows “rampant fraud persists” in the program: “Indeed, the facts of the case seem to indicate that the FCC’s failure to take timely action enabled Total Call to continue enrolling tens of thousands of duplicate Lifeline consumers in the program. Often this appears to have been achieved through a mechanism that allowed Total Call to override the National Lifeline Accountability Database, the system that is supposed to identify duplicates and prevent the kind of fraud Total Call is alleged to have perpetrated.” Upton agreed the case shows “additional scrutiny” is warranted. An FCC spokesman declined comment. The FCC has said it kept the proposed $51 million fine against the carrier under wraps for a time and during a separate proceeding to revamp Lifeline to pay for broadband at the request of its inspector general (see 1604140060).